National Real Estate Headlines vs. Our Local Market: Why Northern Illinois and Southern Wisconsin Are Still Different
If you have been watching national real estate headlines lately, you have probably heard a lot about shifting markets, sellers pulling homes off the market, higher inventory in some areas, and buyers becoming more cautious.
But as we say often: real estate is local.
What is happening nationally does not always reflect what is happening here in northern Illinois and southern Wisconsin. Our market continues to be driven by affordability, limited inventory, and strong local demand.
This month on The Listed Podcast, we looked at a few national real estate stories and compared them with what we are seeing right here at home.
AI Is Changing How Investors Look at Real Estate
One of the big national stories this month was about how large commercial real estate firms are using artificial intelligence to identify undervalued markets and investment opportunities.
BGO, an $89 billion real estate investment firm, has been using AI to evaluate local fundamentals instead of relying only on broad national trends. Their model helped identify an industrial property in Las Vegas that other investors had overlooked, and that property ended up outperforming expectations.
AI is certainly becoming a useful tool in real estate. It can help identify patterns, study large amounts of data, and uncover opportunities that traditional research might miss.
But here is the important part: AI should not replace local knowledge.
Online estimates and automated valuation tools can be way off. Sometimes they are too high, sometimes they are too low, and they often miss the details that only someone familiar with the local market would understand.
Real estate still comes back to the same principle: location, location, location.
AI can be an asset, but it works best when paired with true local expertise.
Could 3D-Printed Homes Help Solve Affordable Housing?
Another exciting story this month comes out of Houston, where Zuri Gardens is using 3D printing technology to build affordable housing.
The community is being built with robotic-printed concrete and includes energy-efficient homes designed to better withstand flooding, heat, and mold. These homes are expected to cost around $200,000, which is very affordable compared to the cost of many new construction homes today.
This is especially interesting because building costs have become a major challenge for buyers. Many people would love to build a new home, but when construction costs can run $250 to $300 per square foot, the dream quickly becomes too expensive.
That is why 3D-printed housing is worth watching.
Could this type of construction become more common? Could it work in our area? Could it help create more affordable options for buyers in smaller communities?
There are still many questions to answer, but it is an exciting development and one we will continue following.
Nationally, More Sellers Are Pulling Homes Off the Market
CBS recently reported that more homeowners are choosing to pull their properties off the market instead of lowering their prices.
According to Realtor.com, delistings jumped nearly 50% from a year ago. Nationally, for every 100 homes listed in June, 21 were pulled from the market. Last year, that number was 13.
Experts say many sellers are in a holding pattern. Some are locked into lower interest rates and do not want to give them up. Others are still hoping for pandemic-era pricing, even as sales slow in some markets and inventory rises.
But again, that is the national picture.
Our local market tells a different story.
Our Local Market Is Not Seeing the Same Slowdown
In Stephenson County and Freeport, homes are still moving.
Last month, 50 homes sold, and there were only 81 homes available for sale. That means the issue here is not a lack of buyer demand. The issue is limited inventory.
Our average sale price last month was $191,628.
That is more than double what it was just 10 years ago. In 2016, the average sale price was $90,489, and prices had stayed near that level for almost 20 years before that.
Even though fewer homes may be selling compared to some past months, the homes that are selling are still selling at historically high prices for our area.
Last month’s average sale price was higher than any prior month over the last 10 years.
That is a very different story than what many people are hearing on the national news.
Inventory Is Still the Biggest Local Challenge
The number of homes sold last month was only about 10% below the average monthly sales volume over the last 10 years.
That matters because it shows our market has not slowed dramatically. Instead, there are simply fewer homes available for buyers to purchase.
With only 81 homes currently for sale in Freeport and Stephenson County, inventory remains tight.
For buyers looking under the average sale price of roughly $191,000, there were only about 40 homes available in that price range.
That is supply and demand.
When inventory is limited and buyers are still active, prices remain strong.
Why Our Area Continues to Stand Out
Affordability continues to be one of the biggest advantages in our market.
In many parts of the country, home prices are two to five times higher than what buyers find here. That has created serious affordability challenges in larger markets and higher-cost areas.
Here, buyers can still find entry-level homes or nice homes in the $150,000 to $200,000 range.
That affordability keeps our region attractive, especially as people compare what their money can buy in northern Illinois and southern Wisconsin versus other parts of the country.
The Bottom Line
National headlines matter, but they do not always tell the full local story.
Yes, some markets are slowing. Yes, some sellers are pulling their homes off the market. Yes, affordability is a major concern across the country.
But in our local market, demand is still present, inventory is still limited, and prices remain strong.
Whether you are thinking about buying, selling, building, or simply trying to understand what your home may be worth, it is important to look beyond national headlines and focus on local data.
For the full episode and this month’s highlighted community guest, please visit:
https://www.youtube.com/@thelistedpodcast