Chicago (CBS) — There’s bad news for those looking to buy or sell their home in the Chicago area. According to Realtor.com’s 2019 National Housing Forecast, the Chicago metro area will have sales decrease by 7.4 percent and prices by 1.9 percent.
According to the report, the number of homes will grow, but most of the inventory will be in the mid- to higher-end price tiers. It will be tough for first time home buyers, especially younger people.
Millennials will continue to make up the largest segment of buyers, comprising 45 percent of mortgages compared to Boomers at 17 percent and Gen Xers at 37 percent.
Millennials will likely be the biggest group of home buyers for the next decade. Their peak home buying year will be 2020 as the largest group of millennials turn 30.
After a record year in 2017, home sales began to decline immediately after the Tax Cuts and Jobs Act was signed into law last December. Taxpayers will go through the income tax process for the first time with the new plan next April.
Homeownership nationally will be at 64.6 percent with mortgage rates up 8 percent.
Among the country’s top 100 metro areas, the largest increases are expected in San Jose, Calif.; Seattle; Worcester, Mass.; Boston and Nashville.