*The City of Chicago Market Snapshot represents the residential real estate activity within the 77 officially defined Chicago community areas as provided by the Chicago Association of REALTORS®.
- 2,316 properties were sold in the City of Chicago in August 2022. This is a 20.5% decrease from August 2021.
- The median sales price in the City of Chicago for July 2022 was $317,000, a 5.4% decrease from August 2021.
- The City of Chicago saw listings average 48 days on the market until contract, a 17.2% decrease from August 2021.
- Check out the August 2022 FastStats.
STATE OF THE MARKET
- Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new home sales and construction to slow.
- “Typical real estate markets ebb and flow, and the decreases in sales price and closed sales in August due to a lack of inventory aren’t a surprise based on the fast pace we’ve seen over the last few years,” said Antje Gehrken, president of the Chicago Association of REALTORS® and president and designated managing broker of A.R.E. Partners. “Despite these declines, days on the market remain low, showing that there’s still buyer demand and a quick turnaround on homes priced right and ready to sell.”
- Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.
INVENTORY
- The City of Chicago’s inventory is down 17.5%, from 9,228 homes in August 2021 to 7,611 homes in August 2022.
- The month’s supply of inventory decreased 11.8%, from 3.4 in August 2021 to 3.0 in August 2022.