While many news outlets have a pretty gloomy take on what 2023 holds for the real estate industry, those in the know still see rays of sunshine.
Since the pandemic, the national real estate market has been on fire, seeing an unprecedented feeding frenzy that resulted in the two busiest years anyone can remember. Now that things are normalizing, it only seems like a foreboding and dramatic shift.
While the Chicagoland market might be a bit less competitive in the coming year, home prices should remain steady, property values should continue to appreciate (or hold steady), and it’s an ideal time for clients who were sidelined by the dread of a bidding war to start exploring their options.
Let’s take a deeper dive into conventional wisdom, maverick predictions, and what you can do to ensure your real estate business weathers the storm and continues to thrive.
A Return to Normal
It’s important to remember that what the real estate industry has experienced since the beginning of 2020 was caused by a seismic shift in the fundamental way we live our lives.
Our necessary pivot to remote work accelerated the demand for real estate, especially in newly minted Sun Belt tech hubs like Austin and Miami. The ensuing digital transformation made it immensely easier for business workers to relocate to more salubrious communities where they could spread out and find a better work/ life balance. The idea of “home” and having your own space became more important than ever before.
While much of the country saw unsustainable price increases, communities in Illinois like Cook County and Chicago don’t necessarily follow the same rules as the rest of the US. They’ve been listed in the top 10 U.S. housing markets likely to hold up best in 2023.
Prospective home buyers have more reasons to be optimistic now than they have since the start of the pandemic. They won’t have to deal with extreme competition and can finally enjoy a bit more bargaining power. Real estate brokers have a unique opportunity to educate their clients on how to snag the best deals in these markets.
As for sellers, getting back to a more normal situation isn’t a bad thing either. People looking to sell may have to readjust their expectations, but those who are willing to offer buyers a move-in ready home will have a distinct advantage.
Education is Key
Over half of today’s real estate professionals have never worked in a market that wasn’t booming. As the situation starts to normalize, the most essential concepts to focus on for 2023 are fundamentals (first), education, creativity, and evolution.
In a shifting market, savvy brokers need to find their niche quickly and do whatever it takes to become a valuable resource for potential clients. It’s critical to educate our clients on the local data so that they can make informed real estate decisions. There will be confusion as the national news narrative will not be in line with our local experience. It is our job to make sure hat we are providing timely, relevant information to help our clients succeed.
One of the only constants in life is change, so Chicagoland’s well-prepared real estate brokerages will benefit by staying abreast of the latest trends in the local market, what’s hot in architecture and landscaping, and different ways of seeking out the best inventory for their clients.
Chemistry and Communication
No one really knows what the future holds, but most experts predict that Chicagoland real estate will continue to stay on an even keel in 2023. Inventory is still limited and interest rates are higher than last year, but potential buyers continue to flock to the Midwest and the Chicago region in particular.
It’s vital to do your due diligence and become intimately familiar with every aspect of your local market. Do whatever it takes to create meaningful relationships with potential buyers and sellers. Expand your ecosystem to include professionals in complementary industries like lending, home services, finance, and sustainability.
More than ever, it makes sense to align with a highly trusted local brokerage like Baird & Warner Lincoln Park. Our full-time management team offers unparalleled guidance, training, and mentorship, giving you the tools you need to meet any unexpected challenges. If you’re ready to learn more about building a thriving real estate business, reach out today!