Spring may not officially begin until March 20, but for Chicago area home buyers and sellers, the season turned a few weeks ago! That’s when 30-year mortgage interest rates finally reached an average of 6%, marking the lowest level in 3 years. For buyers, this was like seeing the first robin after a long and frigid winter.
Lower rates are good news for home sellers, too! Sellers who intend to finance their next home purchase have it easier when rates are down. The gap between older, locked-in mortgage rates and new mortgage rates is shrinking, albeit slowly. Fox News recently reported that about 21% of mortgaged homeowners have an interest rate of 6% or higher. These homeowners are now at a break-even or better position, mortgage-wise, if they sold their current home to get something new. This is a step in the right direction. If rates trend lower, we could see more home inventory loosen up.
In the meantime, Chicago home inventory was 4.4% lower in February 2026, compared to February 2025. Average home values in the Chicago metropolitan statistical area are 4.2% higher than last year at $340,834. But this involves so many counties in a broad market that it isn’t very useful. If you are a home buyer in the western suburbs, for example, you might notice that the average sales price of a Naperville home was $699,000 during February.
The good news is that early spring in Chicagoland offers opportunity for both buyers and sellers! The weather might go between snow, rain and everything in between for awhile, but if you’re looking to move during 2026, don’t wait for the beach to open.
Home buyers, you’ll have less buyer competition now than you will during the months of May, June and July. This means less pressure and fewer chances of a bidding war. Home inventory will gradually improve in the days ahead, though it won’t be at peak levels until the summer. You also have the advantage of the best mortgage interest rates we’ve seen in three years – while they last! The future of mortgage rates is uncertain. (Inflation pressures and Fed policy could move them higher, or geopolitical events and financial market jitters could move them lower.)
Home sellers, you also have less competition now than you will during the late spring and summer months! This gives your home more attention from qualified buyers who are ready to make a decision. You also have the advantages of a less busy real estate season, which helps keep appraisals, inspections, mortgage approvals and closings moving along on schedule!
Want to be in your new home in time for summer? Give us a 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! We offer free home selling seminars too! 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
https://startingpointrealty.com/
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