Millennials driving competitive real estate market in Illinois
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[February 03, 2022]
By Kevin Bessler
(The Center Square) – It was a red-hot real
estate market in Illinois last year, and millennials looking to buy
their first home were a driving force behind it.
Illinois home sales increased nearly 12% and median prices rose about
11% in 2021 compared to the year before.
A wave of first time millennial home buyers entered into the market
eager to purchase their own homes. As a result, low inventories made the
market that much more competitive.
Jaime Seale with the real estate data company Clever said research shows
90% of millennials said they would make an offer on a home without
seeing it in person.
“I think it really has to do with the competitiveness of the market,”
Seale said. “You see a house that looks good, you have to jump on it.
You might not have time to schedule a showing.”
![](http://archives.lincolndailynews.com/2022/Feb/03/images/ads/current/2021_lda_Businessdirectory.png)
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![](http://archives.lincolndailynews.com/2022/Feb/03/images/ads/current/farmersbank_lda_LUAL_2021.png) Home ownership is also taking a
bigger chunk out of paychecks. Nearly half of the millennials
surveyed by Clever said they expect to max out their budgets when
buying a home, with 33% planning to purchase a home that costs more
than the median U.S. home price of about $405,000.
The median sales price for a home in Illinois in
December 2021 was $244,000, up 7.3% from December 2020.
![](http://archives.lincolndailynews.com/2022/Feb/03/images/ads/current/charrons_bch_2022.png)
The tight housing market is forcing some to make an offer on a
second or third choice. Clever’s research shows 82% of millennials
are more likely than boomers (62%) to purchase a fixer-upper, but 1
in 4 who do so regret it.
Once they take the plunge, some don’t plan to stay there long.
According to the Clever survey, nearly a third of millennials (31%)
plan to live in their homes for less than five years.
Seale expects the market to calm down a bit this year, but she said
it will still present challenges for millennials.
“I think it is going to stabilize, but home buyers, especially
millennials, are still expecting a lot of obstacles,” said Deale.
“Expect to pay more than asking price and expect to have other
bidders on the same home.” |