This beautiful city, located just 28 miles west of Chicago, is often ranked as one of the best places to live in America and is known as one of the largest and most affluent suburbs in Illinois. Residents enjoy its top-rated schools, beautiful parks, and high quality of life, making it a popular place to live for families, young professionals, and retirees alike.
But what are the trends and forecasts for the Naperville real estate market in 2023? Below are some of the current and future factors that affect the supply and demand of homes in Naperville. Additionally, learn the forecast for the Naperville housing market for 2023 based on the latest data and insights from industry experts, helping prospective buyers and sellers make informed decisions.
2023 Naperville Housing Market Forecast
In recent years, the Naperville housing market has been a hot topic of discussion for prospective buyers and sellers, and many are curious about the future. The Naperville housing market is expected to undergo several changes in 2023, according to industry experts.
Expect an increase in home values
Naperville is currently positioned as a seller’s market, which means that there are more buyers than sellers, creating a competitive environment and pushing prices up.
Home values in Naperville, IL, are set to increase in 2023 based on the previous year's trends. The average home value in Naperville was $474,545, and the median sale price of a home was $543,000 in February 2023, both up from the previous year. Throughout the coming years, home prices in Naperville are expected to continue this increase.
Historically low interest rates
Compared to historical averages, the mortgage rates are low right now, but they have been rising steadily since mid-2021. The current average 30-year fixed mortgage rate is hovering around 6.94% as of mid-March 2023. This means it may be a good time for borrowers who want to refinance their existing mortgages or lock in a low rate for a new purchase.
Landlords are likely to benefit from favorable investment indicators
With home values set to increase this year and beyond, the forecast will favor rental investors and landlords. Potential buyers might be more likely to hold off on purchasing a home due to spikes in mortgages or rising home costs in the Naperville area.
For those looking to invest in rental properties, it is recommended to do ample research and consult with a professional so you can act fast if you find a property in line with your requirements.
Positive economic and population growth
The economic and demographic indicators are positive, showing a strong job market, a high income level, a low unemployment rate, a high education level, and a growing population. As of 2021, the population was estimated to be over 149,000, which is a significant increase from the population of approximately 141,000 in 2010.
2023 Housing Market Trends in DuPage County
As we look ahead to 2023, there are several emerging trends and shifts in the local real estate market that are worth exploring.
How COVID-19 impacted the DuPage County housing market
DuPage’s residential real estate market was impacted significantly by the COVID-19 pandemic. Many sellers withdrew listings or delayed putting their homes on the market during this time since home sales dropped to some of their lowest levels since the 2007-2009 housing crisis. In contrast to the previous crisis, home prices did not fall significantly, as a low supply and historically low mortgage rates kept them stable or even rising.
With a growing population and expanding job market, the city has rebounded from the pandemic. As of February 2023, DuPage County home prices were up compared to last year, and the market remains strong.
Foreclosure statistics in DuPage
The foreclosure rate in DuPage, and Naperville specifically, is very low compared to the national average and other areas in Illinois. Data shows that Naperville had 18 pre-foreclosure listings, 0 foreclosure listings, and 0 bank-owned listings as of March 22, 2023. A high median income, a low unemployment rate, strong housing demand, and stable home prices can all be linked to this low foreclosure rate.
Median home prices in DuPage County
DuPage County's median listing home price in November 2022 was $379,000, up almost 4% from November 2021. Listed homes averaged $208 per square foot, and the median home sold price was hovering around $340,000.
Among Illinois' most expensive housing markets, DuPage County has a median home price of $370,000 in the third quarter of 2022.
Naperville real estate market: should you invest?
The fifth-largest city in Illinois, Naperville offers a high quality of life and a balanced housing market. Investing in real estate here continues to be a good idea because of the strong economy, the high demand for housing, and the rise in home and rental prices.
Hobson West
There are some of the best schools in Illinois in this neighborhood one mile south of downtown Naperville. Home prices in this neighborhood are expected to rise by 33.3% in 2022, making it one of Naperville's hottest neighborhoods. At $230 per square foot, the median listing price for a home is $599,800.
Cress Creek
Located less than 10 minutes northwest of downtown Naperville, this neighborhood is home to the popular Cress Creek Country Club, which offers golf, swimming, and tennis. There is a high demand for homes in this neighborhood, consistently ranked as Naperville's second-most popular neighborhood. The median price of a home in the area is $542,000, and the average price per square foot is $199.
Downtown Naperville
Near restaurants, shops, the Riverwalk, and top-rated schools, this neighborhood is in Naperville's heart. It has high-end homes and condos, making it one of Naperville's most expensive neighborhoods. It is estimated that the median home price is $749,900, with the price per square foot being $275.
Ashbury
Ashbury is a family-friendly neighborhood in Naperville with excellent schools. In Ashbury, homes typically sell for between $400,000 and $1.2 million, with the average price per square foot around $194.
Are you ready to buy or sell in Naperville?
The Naperville real estate market is gaining momentum due to rising home values and high demand for housing. As the area continues to expand and develop, it presents a promising opportunity for buyers and sellers alike. The current trends are likely to persist, making Naperville an attractive location for investment both in the present and the future.
To explore your options for buying or selling in Naperville, contact the local area experts at The Kohler Group.
