Arlington Heights, Illinois, has all the trademarks of a hot-ticket neighborhood. It speaks to numerous residents, from growing households to empty nesters happy to settle down in a hassle-free neighborhood. The suburb also strikes the perfect balance between the charm of a small town and the accessibility of a community right in the heart of an urban oasis, offering desirable commutes and big-city conveniences. With its numerous draws, it’s no wonder many are flocking to this highly desirable neighborhood.
However, what will purchasing, investing in, or selling a home in this area entail? Real estate expert Holly Connors has created a breakdown of the Arlington Heights real estate market to answer your questions and provide you with invaluable information so you can make informed decisions.
Arlington Heights housing market forecast 2023
While observing the real estate market on a national level is helpful, sellers, buyers, and investors alike should also be aware of local market conditions, such as interest rates, median home prices, and more. Various factors can affect the market, including economic fluctuations. Before purchasing or selling real estate in Arlington Heights, let’s take a deeper look at the local market.
Are home prices increasing?
As of June 2023, Arlington Heights is experiencing a seller’s market, with properties selling for higher prices and spending a shorter time on the market. Homes are spending an average of 43 days on the market, with many sold above the asking price.
When reviewing local market trends and observing properties on the MLS, the value of homes in Arlington Heights is steadily increasing, providing the perfect opportunity for investors and sellers to get a bang for their buck. The median list price of Arlington Heights homes came in at an average of $389,000 in June 2023, a 4% increase since last month.
What has been going on with the interest rates?
To better combat inflation, the Federal Reserve has continued to raise interest rates over the last year. Its recent fluctuations have been described as inconsistent at best and petulant at worst by many real estate experts. Perhaps the most important thing to remember is that buyers and sellers in the Arlington Heights real estate market must be more vigilant about keeping up to date with interest rates, as these can greatly affect their transactions.
There are varying sources that dictate the range of interest rates. However, the best data on interest rates for Arlington Heights is to look at Cook County. The neighborhood rests at the higher end of the county’s price range for its higher-quality homes and upscale community amenities.
According to economists and the NAR, interest rates will fall to 6.0%, with the Mortgage Bankers Association (MBA) predicting the 30-year interest rates will drop to 5.2% by the end of 2023. Inputting what we know about the median home values in Arlington Heights, calculations deduce that buyers will pay an average 30-year monthly payment of $1,825.42, which includes principal and interest, homeowners insurance, and property taxes.
Cook County housing market trends 2023
Cook County contains over 59% of Illinois’ total population and 800-plus local governmental units within its 1,635 square miles. In addition, the county sits at the heart of the Chicago metropolitan area, providing an ample variety of neighborhoods and amenities for motivated buyers to choose from as they search for the community that suits their lifestyle needs.
The Institute for Housing Studies has observed Cook County’s price index for the fourth quarter of 2022, which shows that housing prices are slowing down in the county as a whole. According to The National Association of Realtors, the median home value within Cook County is $323,470.
How has COVID-19 affected Arlington Heights real estate market
Like most real estate markets in the United States, Arlington Heights experienced an increase in housing prices at the beginning of 2020 when the country went into lockdown to fight the COVID-19 health crisis. During this time, mortgage interest rates fell to historic lows, triggering interested buyers to take advantage of these rates. This spike in demand caused home prices to rise, thus lending its way into a seller’s market.
Since 2020, housing prices have steadily risen to meet demand, with a 27.2% increase since the beginning of COVID-19 lockdowns. The aftermath of the pandemic has affected all real estate markets within the United States. However, most metropolitan centers, such as Cook County, have bounced back exceptionally well, with Arlington Heights as a prime example.
The big question: should you invest in Arlington Heights real estate?
The short answer is yes. Arlington Heights is one of the most sought-after neighborhoods in Chicago for its versatility, warm atmosphere, and vibrant community. Both its advantageous market and the beloved nature of the area make it an excellent investment. Forecasts show the median home values are set to rise, with a steady value appreciation making Arlington Heights homes for sale a safe investment for potential buyers.
The bottom line
Buyers, sellers, and investors eager to enter the Arlington Heights real estate market should stay aware of ongoing trends and conditions, as the market fluctuates often and can change at any given moment.
In order to navigate the housing market’s tricky waters, you must work with a trusted real estate expert like Holly Connors and her team at GetBurbed. Holly is a top-rated professional offering her clients premier access to concierge services and data-backed advice that can help them sell, buy, or invest in Arlington Heights real estate with confidence. Holly’s transparent, direct communication skills and data-backed negotiation methods make her the perfect partner when drafting or countering offers. Whether you’re a first-time buyer, a seasoned investor, or a seller seeking top-dollar for your home, Holly and her team are happy to help you reach your real estate goals. Contact Holly today to schedule an appointment!
