Chicago home buyers have more options to choose from as the market cools off. There were signs of a slowdown in August, with homes spending more time on the market, and price reductions happening in areas that rarely see them. We shared examples from our own experience in our newsletter, and you can read it here if you missed it.
Statistically, August was a mixed bag for Chicago home sales. According to Illinois REALTORS®, the median sale price for a Chicago Metro home was $311,000, an increase of 3.7% from August 2021. In the City of Chicago itself, median home prices actually declined by 5.2%, compared to last year. Home sale transaction volume was down by 21% for both the greater metropolitan area and the city proper.
Since then, mortgage interest rates have moved higher, and gloomy economic forecasts are all over the news. As buyers double-check their budgets, sellers are gradually adjusting their price expectations. According to stats by Rocket, about 57% of all Chicago home sales during September 2022 sold below the asking price. Interestingly, there were still over 500 homes that sold for more than the asking price, and another few hundred that sold at the list price. In other words, you can’t make assumptions about any home on the market. If a home is in great condition, priced right, and located in a popular area, it can still draw buyer competition. Whether you are a buyer or seller, pay attention to recent sales activity in your price range, in your local market, and work closely with a Chicago area real estate professional who knows the neighborhood.
Also keep in mind that Chicago area home sales typically slow down in the fall. Some of what we are seeing now is a return to seasonal patterns. The big question going forward is how steep interest rates could get before leveling off. Today’s rates are about double from a year ago, but six months from now they could look like a bargain. If you are serious about buying a home, don’t wait!
StartingPoint Realty helps first-time home buyers, and home sellers too!
StartingPoint Realty proudly serves first-time home buyers throughout the entire Chicago area. Get an introduction to home buying by attending our free home buying seminar! There’s no sales pressure and no obligation. We can also refer you to top mortgage lenders in Chicagoland – just ask!
If you’re thinking about selling your Chicago area home, we’ve got qualified buyers at the ready! We’ll give you the information and guidance you need to make the most of your opportunities. Ask us for a free consultation about your home’s market value. There is no pressure to list your home, and no obligation.
Always feel welcome to contact us with your Chicago real estate questions!
Ryan Gable Broker/CEO Starting Point Realty
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