Home prices in the Chicago suburbs have been rising month-over-month since May 2023. According to market data from the Mainstreet Organization of REALTORSĀ®, a low inventory of Chicago area homes for sale continues to pressure home prices. This was the story for home buyers throughout 2023, and the same conditions are expected through the rest of 2024. 

The median price of a single-family suburban Chicago home increased 9.6% from May 2023 to May 2024, reaching $400,000. Buyers have found some affordability in attached suburban homes, but prices have increased here as well. Townhome and condo prices in the suburbs have increased 11.3% on a year-over-year basis, reaching a median price of $238,000

Low inventory has contributed to lower transaction volumes in suburban home sales. When you hear that “home sales are down” but prices are up, it can be confusing for home buyers. Simply put, transaction volume reports the number of homes sold at a given time, but by itself, it is not an indicator of demand. Currently in the suburbs, home sales are “down” because there is very little inventory for sale. 

The number of homes for sale in DuPage County and Kane County stand at 1.3 months of supply. This means that if no new inventory came to market, all the available homes would sell in 1.3 months. 

In Cook County, the number of homes for sale stands at 2.1 months of supply. 

A “normal” market – something we haven’t seen in years – would have 5 or 6 months worth of homes for sale. 

Another way to look at home demand is the time it takes for a home to sell. As of May 2024 data, single-family detached suburban homes were selling in about 34 days, on average. Attached suburban homes are moving more quickly, selling after about 24 days on market. 

Waiting for “better” home buying conditions may not be feasible. Currently, higher mortgage interest rates, which have been trending around 7%, have sidelined some buyers. But if rates hit a threshold that unleashes more buyer demand, home prices will only go up – unless inventory improves. This is a challenge that does not have an easy answer. 

However, it isn’t impossible for a market to change. Downtown Chicago home prices have softened. Millennial home buyers, once considered an urban-dwelling generation, began shifting to the suburbs several years ago. When the pandemic hit, buyers shunned urban dwellings for more elbow room in the suburbs. This doesn’t mean there is anything wrong with downtown living – in fact, there is a lot of lifestyle for the money. It all depends on your priorities for home ownership. Let us help you find your best options! 

We can refer you to trustworthy mortgage lenders, home inspectors, contractors and more! Call 847-348-1154.

StartingPoint Realty – serving Chicagoland since 2004! 

StartingPoint Realty proudly serves home buyers and sellers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! Contact us for your free home buying or home selling consultation!

Ryan Gable Broker/CEO Starting Point Realty
Phone: 847.348.1154

Email: RyanGable@startingpointrealty.com
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