J
ustin Gwizdala, 33, recently purchased his third home in Lake Forest, a five-bedroom house with a mortgage rate of 5.625%, significantly lower than the rates he secured for his previous homes. His monthly payment is around $4,900, including taxes and insurance, compared to $4,000 for his previous home. Gwizdala attributes the drop in interest rates from six months ago as a "monumental difference" in dollars per month.

    Despite this positive development, many buyers and sellers are still hesitant due to uncertainties surrounding mortgage rates, the upcoming election, and new real estate agent agreements. The lack of homes for sale remains a significant challenge, with local and national markets experiencing inventory shortages for over a year. This has led to affordability challenges for potential buyers in Chicago.

    Gwizdala's experience was an exception, as he closed on his new home just 48 hours after it came on the market, thanks to his knowledge of the sellers' other interested buyers. He listed his previous property for $875,000 and received two offers above the listing price, ultimately choosing the offer that met his needs.

    The Chicago area's limited inventory is driving up home prices, with a 9.4% increase in September compared to the same time last year, according to Redfin data. In contrast, nationwide home sales declined by 3.9%. New home listings were down 7% in Chicago versus up 2% nationwide.

    Erika Villegas, president of the Chicago Association of Realtors, notes that prospective buyers are still struggling with inventory and affordability challenges. Many families tend to stay put as children head back to school, while others, like Adam Stempel, have decided to step back from their home search due to high prices and mortgage rates.

    As for the remainder of the year's market, some industry experts remain optimistic, expecting a surge in activity after the election. However, others, like Daryl Fairweather of Redfin, are less certain, citing ongoing uncertainties surrounding real estate agent commissions, climate change-induced hurricanes, and fluctuating mortgage rates.