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®.
- 3,335 properties were sold in the City of Chicago in May 2022. This is a 3.4% decrease from May 2021.
- The median sales price in the City of Chicago for May 2022 was $350,000, the same as May 2021.
- The City of Chicago saw listings average 55 days on the market until contract, a 23.6% decrease from May 2021.
- Check out the May 2022 FastStats.
STATE OF THE MARKET
- After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.
- The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.
INVENTORY
- The City of Chicago’s inventory is down 22.6%, from 8,560 homes in May 2021 to 6,626 homes in May 2022.
- The month’s supply of inventory decreased 19.4%, from 3.1 in May 2021 to 2.5 in May 2022.