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®.
- 3,339 properties were sold in the City of Chicago in June 2022. This is a 14.5% decrease from June 2021.
- The median sales price in the City of Chicago for June 2022 was $365,000, the same as June 2021.
- The City of Chicago saw listings average 50 days on the market until contract, a 16.7% decrease from June 2021.
- Check out the June 2022 FastStats.
STATE OF THE MARKET
- Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market. To help quell inflation, which reached 8.6% as of last measure in May, the Federal Reserve raised interest rates by three quarters of a percentage point in June, the largest interest rate hike since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago.
- With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers. Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.
INVENTORY
- The City of Chicago’s inventory is down 17.8%, from 9,009 homes in June 2021 to 7,408 homes in June 2022.
- The month’s supply of inventory decreased 15.2%, from 3.3 in June 2021 to 2.8 in June 2022.