A report released Nov. 27 by realtor.com forecasts the Chicago-Naperville-Elgin Metropolitan Area will experience the worst housing market slowdown among 100 of the nation's metropolitan areas in 2019.
As mortgage rates are slowly creeping up to 5.5 percent, home sales are expected to slow nationwide. However, the slowdown is anticipated to be nearly four times worse in Chicago than in the rest of the nation.
Illinois homeowners are subject to the highest overall tax burden in the country, including the second highest property taxes in the nation. They're also weathering the largest permanent income tax hike in state history. As these costs rise, the value of homeownership in the Land of Lincoln falls relative to other areas, reducing demand for housing.
Furthermore, as median home prices are expected to appreciate by 2.2 percent throughout the nation, the typical Chicago area home will likely lose nearly 2 percent of its total value in 2019, according to the realtor.com forecast.