*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®.
- 1,434 properties were sold in the City of Chicago in December 2022. This is a 40.8% decrease from December 2021.
- The median sales price in the City of Chicago for December 2022 was $288,000, a 8.1% decrease from December 2021.
- The City of Chicago saw listings average 75 days on the market until contract, which is a 1.3% decrease from December 2021.
- Check out the December 2022 FastStats.
STATE OF THE MARKET
- 2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
- Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
INVENTORY
- The City of Chicago’s inventory is down 14.6%, from 6,283 homes in December 2021 to 5,366 homes in December 2022.
- The month’s supply of inventory increased 4.3%, from 2.3 in December 2021 to 2.4 in December 2022.
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