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®.- 1,821 properties were sold in the City of Chicago in January 2022. This is a 7.3% increase from January 2021.
- The median sales price in the City of Chicago for January 2022 was $310,000, the same as this time last year.
- The City of Chicago saw listings average 89 days on the market until contract, a 4.7% increase from January 2021.
- Check out the January 2022 FastStats.
STATE OF THE MARKET
- The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5% compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.
- “The real estate market remained solid in January, with increased home sales and prices holding steady,” Antje Gehrken, president of the Chicago Association of REALTORS® and president and designated managing broker of A.R.E. Partners, said. “Continued inventory declines are impacting market time, as buyers are slowing from the heightened pace of 2021 and taking the time to find the home of their dreams.”
- For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.
INVENTORY
- The City of Chicago’s inventory is down 32.7%, from 8,294 homes in January 2021 to 5,578 homes in January 2022.
- The month’s supply of inventory decreased 45.9%, from 3.7 in January 2021 to 2.0 in January 2022.
