MARKET SNAPSHOT — CITY OF CHICAGO
*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®.
- 2,408 properties were sold in the City of Chicago in December 2021. This is a 6.2% increase from December 2020.
- The median sales price in the City of Chicago for December 2021 was $315,000, an 3.3% increase from December 2020.
- The City of Chicago saw listings average 76 days on the market until contract, the same as this time last year.
- Check out the December 2021 FastStats.
STATE OF THE MARKET
- The 2021 housing market was one for the history books. After three consecutive months of increases recently, existing home sales are on pace to hit their highest level in 15 years, with an estimated 6 million homes sold in 2021 according to the National Association of REALTORS®. Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above asking price. Mortgage rates, which began the year at historic lows, remain attractive, and homeowners who choose to sell in the coming months can expect to see plenty of buyer activity due to pent-up demand during the pandemic.
- “Despite a continued decline in inventory in December, caused by market seasonality and inventory shortages, we still saw positive momentum in the Chicago market,” Antje Gehrken, president of the Chicago Association of REALTORS® and president and designated managing broker of A.R.E. Partners, said. “Condo sales continue to shine throughout the city, which is a great indicator for the market moving into the new year.”
- Looking ahead, experts anticipate many of the housing market trends of 2021 will continue in 2022, albeit at a more moderate level. Strong buyer demand and inventory shortages are likely to persist over the next year. Home sales are projected to remain strong but will be tempered by the limited supply of homes, higher sales prices, and rising interest rates, with the Federal Reserve planning multiple rate hikes in the new year. Price growth is expected to slow somewhat as a result, but affordability will likely remain a top constraint for some homebuyers.
INVENTORY
- The City of Chicago’s inventory is down 30.3%, from 8,254 homes in December 2020 to 5,750 homes in December 2021.
- The month’s supply of inventory decreased 43.2%, from 3.7 in December 2020 to 2.1 in December 2021.