Statistically, Chicago area home sales activity has declined, but home buyers are very active in the market. Here’s a look at the sales trends, along with our advice for Chicagoland buyers and sellers!
According to the Mainstreet Organization of REALTORS®, 35,741 single-family suburban homes were sold during 2022. This is a 22.5% decrease from 2021. The catch: home sales were lower in 2022 largely because there were fewer homes for sale. Sales didn’t slow down much until higher interest rates kicked in during the final months of the year.
Another way to look at home demand involves price trends. During 2022, the median sales price for a detached suburban home increased 5.5%, reaching $343,000.
Looking at the month of December 2022 alone, suburban home sales fell 38.2% from December 2021. Yet suburban median home sale prices still increased 1% from the same month a year ago.
Conditions are a bit softer in the city itself. According to Illinois REALTORS®, home prices in the City of Chicago posted a median of $335,000 during 2022, about the same as 2021. Chicago home prices fell towards the end of 2022, with December prices about 8% less than December 2021. Homes are taking longer to sell than a year ago, but market times remain in the norms for winter.
What we have is a market that is re-balancing itself after a long homebuying frenzy. For Chicago area home sellers, the good news is that buyers are still very active in the market! These buyers are well-qualified, but they are not desperate, and they are not in a hurry. We are seeing some nice homes sit on the market because they simply don’t match what today’s buyers want. In other cases, modern-looking homes in popular areas can sell very quickly.
For Chicago area home buyers, the challenge of low home inventory remains an issue. There is still competition for the most desirable homes. However, this is a good time to comb through listings that have been on the market for a while, and see what may have been overlooked. Also, keep your mortgage pre-approval updated! Changes in interest rates will affect your purchase power, for better or worse.
StartingPoint Realty – serving Chicagoland since 2004!
StartingPoint Realty proudly serves first-time home buyers and sellers throughout the entire Chicago area. Contact us for your free home buying or home selling consultation!
Ryan Gable Broker/CEO Starting Point Realty
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