The Daddy Daughter Dance and What It Says About Today's Market

Current Market Conditions

This past weekend was one of the best nights of the year for me.

It was the Daddy Daughter dance at my daughter Remi’s school. Remi is 5, and she had been talking about it all week. Actually… longer than that. She spent the entire week getting ready. She was searching for the perfect dress because she wanted to surprise me with it. She got her nails done. And every day she kept telling me how excited she was for the big night.

When I got home the night of the dance, she was absolutely buzzing. I brought her a little corsage and she lit up. She was so happy it was just the two of us.

And truthfully, so was I.

Between work and life, it’s rare I get time with my kids one-on-one, so I was really looking forward to it too.

We walked into the school and the first thing she wanted to do was get our picture taken. She was so excited. But then we walked into the gym… and suddenly she got quiet.

She got a little nervous.

She wanted a snack. She wanted to sit down.

All of her friends were there saying hello, her cousin Elle (Mickey’s daughter) was running around the dance floor like crazy… but not Remi. She just wanted to sit and watch for a bit.

I kept encouraging her to go dance or walk around. Eventually I convinced her to go do some drawing. And slowly, after a little time, she started warming up. She started talking with her friends. Then she started playing. And before long she was running around the gym, dancing, laughing, and having the best time.

She just needed a little time to get comfortable.

And oddly enough… that’s exactly where the housing market is right now.

We are officially in the thick of prime time.

A lot of buyers started their home search back in January and February. They came into the market excited and ready to buy. But then they started seeing how competitive things were. Multiple offers. Fast decisions. Big numbers.

And a lot of them did what Remi did when she walked into that gym.

They got a little quiet. A little hesitant.

They toured homes but hesitated to make offers. And if they did make one, it wasn’t always with full conviction.

But after a few weeks of being in the market… something changes.

They get comfortable.

They understand the pace. They understand the competition. They see where homes are actually selling.

And once that happens… they start going all in.

Which is why offers the past couple weeks have been so strong.

The buyers who were sitting on the sidelines earlier are now fully in the game.

Just like Remi at the dance.

At first she sat on the sidelines. But once she got comfortable, she jumped right in and started dancing like nobody was watching.

And that’s exactly what buyers are doing right now.

The next six weeks are the heart of the market. The buyers are warmed up, confident, and ready to go all in.

Right now, the music is playing, the floor is full, and the buyers who once stood quietly along the wall are finally out there dancing.

Demand is peaking right now. We’re seeing more buyers entering the market and submitting very strong offers.

Listings are also starting to hit the market more consistently as we move into prime listing season.

Rates dipped slightly this week, which is helping fuel buyer demand.

Contract were up again this week, which is expected as we move through the heart of contract season.

Multiple offer remain the norm on new listings in the outskirts.

The downtown high rise market is showing some early signs of improvement in luxury demand, but we haven’t seen a meaningful increase in signed contracts just yet.

The conflict in Iran has not had an impact on the housing market so far. We have not seen buyers hesitate or deals fall apart because of it. It’s still something to watch closely. A lot of people asked about it this week, so I wanted to include it again.

The luxury market continues to move a bit slower than the mid-market. Demand is there, but buyers in this price range are taking their time and being more selective. This will be something to keep an eye on over the next few weeks.

One of the biggest things the market needs right now is more larger units — townhomes, duplex downs — along with entry-level single-family homes. Many of these typically come on the market right after Spring Break, so the next few weeks will be a big indicator of what the summer market could look like based on the inventory that shows up.

Chicago is currently outperforming many major cities across the country. A big reason is the “boomerang effect,” where buyers who left during the pandemic are starting to move back. This will be an interesting trend to watch as we move through the rest of spring and into the summer market.

Single Family Homes 
Single-family homes remain the most sought-after property type, especially at the entry-level price point. We’re also seeing movement in the luxury segment. Not 24-hours fast, but still quick compared to historical norms. Years ago, many of these homes would sit for six months. Now, a lot of them are trading in around four weeks. The big thing to watch is inventory after Spring Break. If we don’t see a meaningful wave of single-family homes hit the market — which historically is common — this segment will likely remain extremely competitive all year. If we do get a good wave of inventory, it will probably just ease the pressure slightly, but competition will still be strong. Either way, bidding wars remain the norm. This continues to be a seller’s market.

Lincoln Park, Lakeview, North Center, Roscoe Village
This area is still the crazy of crazy. Things are moving extremely fast right now. At this point, it’s less about what something is “worth” and more about what someone is willing to pay for it. For buyers, there is a little bit of relief, more properties are starting to hit the market, which at least gives people some options.For sellers, it’s something to watch. More inventory can eventually mean more competition and some pressure on pricing. The big thing to watch will be what happens after spring break. Right now the biggest piece of the pie we’re missing is duplex downs and townhouses. There are almost none available. If we see a wave of those hit the market after spring break, that will be something to pay attention to. For now though, this remains a strong seller’s market.

West Town, Wicker Park, Bucktown, Logan Square, Avondale
Same as above.

West Loop
Demand in the West Loop continues to grow, especially on the entry-level side and the ultra-luxury side of the market. The West Loop has always been one of the most exciting neighborhoods in the city, packed with restaurants, businesses, and energy. Because of that, it’s honestly a little surprising that the market here has still been somewhat slow to move. Where we continue to see the most resistance is in the middle price ranges, especially when units are dated. Those tend to sit the longest. That said, we are starting to see properties move more consistently, so I’m moving the West Loop into a balanced market for now.

Old Town
Old Town is still seeing a very strong market. Inventory is extremely low, and any new property that hits the market in a walk-up basically has a line around the corner to see it. The high-rises, especially the ones without in-unit washer/dryers, are still selling too, just without the crowds lining up to tour them. Overall though, this remains a strong seller’s market.

South Loop
The South Loop is a bit of a hit-or-miss market right now. Some entry-level properties that are priced well and have all the bells and whistles are selling quickly. The same goes for luxury properties with great views that are priced aggressively. Everything else, though, seems to be sitting. Townhomes are also performing well, mainly because there just isn’t much inventory in that category. On the other hand, anything with higher HOAs or dated finishes is taking longer to move. Overall, I would still call this a buyer’s market right now.

New East Side & The Loop
We’re starting to see a little action here. The entry-level properties with all the bells and whistles are moving. The luxury properties with ultra high-end finishes that are priced to sell are also moving. The rest? Not so much. Especially the properties with tired finishes — those are sitting. This is a market where sellers really need to reset their pricing and expectations. The interesting thing is, when that happens, those homes do sell. For now, this remains a buyer’s market.

River North, Streeterville, Gold Coast
We are starting to see this area turn. It hasn’t fully turned yet, that probably still takes another 24 months, but we’re starting to see some light. Entry-level properties with all the bells and whistles are selling. Really high-end homes that are priced well, often below what the seller paid, with little to no value assigned to their upgrades, are also selling. Everything else is struggling. The homes having the hardest time are the ones with tired finishes or sellers reaching on pricing. Just like in other areas, sellers here need to reset their pricing and expectations. When they do that, the homes sell, and buyers know it. Buyers in this area are extremely price sensitive and very picky. For the first time in about five years, I would call this a balanced market.

The Big Picture:

• Outskirts: It remains a seller’s market across all categories, 

• Downtown Core: Is a buyer’s market.