February 2023 Market Snapshot

*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®.

• 1,218 properties were sold in the City of Chicago in February 2023. This is a 36.7% decrease from February 2022.
• The median sales price in the City of Chicago for February 2023 was $310,000, a 3.1% decrease from February 2022.
• The City of Chicago saw listings average 94 days on the market until contract, which is a 2.5% increase from February 2022.
• Check out the February 2023 FastStats.

STATE OF THE MARKET

• In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% – 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of REALTORS® (NAR).
• With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring.

INVENTORY

• The City of Chicago’s inventory is down 17.1%, from 6,223 homes in February 2022 to 5,161 homes in February 2023.
• The month’s supply of inventory increased 7.5%, from 2.3 in February 2022 to 2.4 in February 2023.

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