Housing Market Slows in Chicago Metro Area, Sales Down 1.3%
The Chicago Metro Area’s housing market has slowed down, with annual home sales declining by 1.3% compared to 2023, according to a recent report. A total of 88,413 homes were sold in 2024, which is lower than the 89,620 sold in the previous year.
The report from Illinois Realtors, a trade association for real estate agents, also shows that the median price of a home in the Chicago Metro Area was $350,000, up 7.9% from $324,500 in the previous year.
The organization defines the Chicago Metro Area as including Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties.
Chicago Market Also Slows
The slowing housing market was also seen in the City of Chicago. While home sales increased 5.3% year-over-year in December of 2024, the number of homes for sale in the city was down significantly (15.2%) over the same time period. The median price of a home in Chicago in 2024 was $355,000, a 7.6% increase from the year before.
There was a total of 22,071 homes sold in Chicago in 2024, which is down 1.6% from the 22,437 sold in the previous year. The average 30-year, fixed-rate mortgage at the end of last year was 6.72%, down from the previous year’s 6.82%, according to Freddie Mac data.
‘Inventories Remain Tight’
Experts say that while trends have remained steady and housing prices continue to go up, it’s because there are still few houses available for sale.
“Looking at broader market conditions in the state, inventories remain tight despite slight increases and mortgage rates remain persistently high,” said Geoff Smith, executive director of the Institute for Housing Studies at DePaul University. “Despite these challenging conditions, housing sentiment remained high to close the year based on continued optimism that mortgage rates will decline and homebuying and selling conditions will improve in 2025.”
Erika Villegas, president of the Chicago Association of Realtors, also commented on the situation. “Buyers are broadening their horizons and budgeting proactively, with the understanding that interest rates may not significantly change, so they’re working within what inventory is available,” she said.
What This Means for Buyers and Sellers
For buyers, this means that they need to be prepared to act quickly and make a decision when they find a home they like. It’s also important to work with a reputable real estate agent who can help you navigate the process.
For sellers, this means that it’s more important than ever to price your home competitively and to make any necessary repairs or improvements to attract buyers.
Conclusion
The Chicago Metro Area’s housing market has slowed down, with annual home sales declining by 1.3% compared to 2023. While prices are still going up, experts say that this is because there are still few houses available for sale. For buyers and sellers, this means that it’s more important than ever to be prepared and to work with a reputable real estate agent.
Frequently Asked Questions
Q: Why are home sales down in the Chicago Metro Area?
A: Home sales are down due to a combination of factors, including high interest rates and limited inventory.
Q: What is the median price of a home in the Chicago Metro Area?
A: The median price of a home in the Chicago Metro Area is $350,000.
Q: How many homes were sold in the City of Chicago in 2024?
A: A total of 22,071 homes were sold in the City of Chicago in 2024.
Q: What is the average 30-year, fixed-rate mortgage in the Chicago Metro Area?
A: The average 30-year, fixed-rate mortgage in the Chicago Metro Area is 6.72%.
Q: Why are housing prices still going up in the Chicago Metro Area?
A: Housing prices are still going up because there are still few houses available for sale, and demand remains high.