How Is the Real Estate Market Right Now?

By John Lyons

John Lyons, a distinguished broker associate at Baird & Warner, has carved a niche in the Chicago real estate market with his comprehensive, client-first approach. With over $130 million in career sales, Lyons has a proven track record in assisting a diverse range of clients, including luxury home buyers, first-time buyers, sellers looking to move up, and investors.

“How is the housing market right now?” I’ve been getting this question a lot recently, and I understand why. This is the time of year when people plan their moves for 2025, but it’s difficult to know what you should do without understanding where the market is at. The truth is that our market can be summed up in one word: Normalization. While the red-hot market of the pandemic is far behind us, the market isn’t heading for a crash anytime soon. Instead, things are balancing out. Here are three things you need to know about our normalizing housing market:

1. Competition is increasing. There are more homes for sale in the U.S. than there have been since before the pandemic. For buyers, this means more options For buyers, this means more options. If you’ve been frustrated by the lack of options, now might be the time to reenter the market. Meanwhile, sellers need to reset expectations about how long it will take to sell. You can still get a great deal in this market, but your home probably won’t fly off the market like it would have a few years ago.

2. Prices are increasing slowly but steadily. In most markets around the country, prices are still increasing, although it’s at a modest pace. Redfin expects prices to increase by 4% in 2025, which means sellers need to be careful about not overpricing their properties. Prices are increasing, but buyers are savvy enough to know when a property isn’t worth what you’re asking. Meanwhile, buyers can be confident that they will start building equity as soon as they close.

3. Condition matters. Right now, there is a large gap between homes that need a little work and homes that are in pristine condition. Good-quality homes still sell quickly and for top dollar; they might even create a bidding war among buyers. On the other hand, homes in need of repairs could sit on the market for a long time. Buyers don’t have a ton of extra cash on hand for repairs after closing, so small investments upfront could make it much easier to sell your house.

These points are broad strokes that are generally true for most markets across the country. However, you should know that real estate is hyper-local. What’s happening in your neighborhood might not be true for your area in general. If you want to learn more about your local market, call or email me for more details. I’d love to share more information with you