New home sales in Chicago area remain sluggish

Stagnant, that’s how a recent story from Crain’s Chicago Business describes the new housing market in the Chicago area.

Citing numbers from a report by Tracy Cross & Associates, the story says that as of the end of September, builders in the 10-county Chicago area were on pace to sell 4,021 new-construction homes in 2019. That’s only two homes more than in 2018, when builders sold 4,019 new homes, according to Tracy Cross & Associates.

It’s safe to say that the market for new housing in the Chicago area, then, is a bit sluggish. That’s especially true when you compare the sale of new homes here and in other parts of the country.

The Crain’s story, citing numbers from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, said that across the United States, the sales of new homes were up a bit more than 7 percent this year through September. That’s a far greater increase than what we’ve seen in the Chicago area.

Why are new home sales so flat in the Chicago area? The Crain’s story ties it into the slower price growth of existing homes in Chicago and its surrounding areas. As the story says, if existing home prices aren’t rising faster, there’s less financial incentive for buyers to purchase a new home. Builders are struggling today to offer what the Crain’s story calls a bargain alternative with newly built homes.

The Crain’s story also pointed to the dipping population in Illinois. As people move out of the state, there is naturally a lower demand for new housing.

That isn’t to say that new homes aren’t being built in Chicago, or that these new homes won’t be the right fit for you and your family. The key to finding the right new home in Chicago today, though, is to work with a REALTOR® who knows the Chicago communities in which you want to live. This professional can help you find a newly built home at a solid price.