Important points
In May, the Chicago housing market had a slight advantage for sellers, but the power balance was roughly even. Home prices, sales and listings all rose as market activity returned. Consistent with the gradual reset of the national market, seasonal trends in the city remained more “normal” than in recent years.
A snapshot of the Chicago housing market
Balance of Power Median Sale Price (YoY) Pending Sale Amount (YoY) Active Listing (YoY) Number of Listing Days (YoY) Balance Market $395,400 (+5.2%) 7,778 (+6.3%) 26,679 (+0.7%) 51 (-3 days)
The spring housing season was in full swing in May, and the Chicago market followed suit. Sales increased, home moves accelerated, and prices rose. While regular exchange-traded products took about seven weeks to sell, high-priced stocks sold faster than in previous springs. Although the market was almost perfectly balanced, strategy still mattered.
Learn everything you need to know about the Chicago, IL housing market as summer approaches and what buyers and sellers can do to be successful.
A snapshot of the US housing market
Balance of Power Median Sales Price (YoY) Pending Sales (YoY) Number of Active Listings (YoY) Days on Market (YoY) Buyer’s Market $393,247 (+2.3%) 349,901 (+4.4%) 1,483,919 (+0.7%) 48 (+2 days)
Nationwide, prices are rising, inventories are increasing, and pending sales are increasing. The long, slow and expensive buyers’ market that has characterized the post-pandemic market is finally showing signs of thawing, but buyers remain firmly in control.
“Housing has been in a rut for years, with buyers and sellers facing high prices and too few homes,” said Chen Zhao, head of economic research at Redfin. “While the situation remains challenging, many cities are in the midst of a multi-year reset from the pandemic, with slowing price growth and rising inventory, contributing to improved affordability as wages rise.Pending home sales have increased over the past three months, an early sign that buyers and sellers are starting to re-enter the market.However, the volatility associated with the Iran war has everyone on edge.”
Let’s take a closer look at Chicago’s housing market.
Chicago’s housing market has a slight advantage for sellers
In Chicago, the market was tilted slightly toward sellers in May, with buyers outselling sellers by just 0.5%. The number of buyers increased by 5% in May compared to the same month last year, but the number of sellers remained roughly the same. Nationally, it was essentially the opposite. Sellers outnumbered buyers by 47%.
We moved into the house relatively quickly. The median priced home was on the market for 51 days, and 44% of listings went under contract within two weeks. Meanwhile, 37% of homes sold for more than their original list price, compared to just 26% nationwide.
Aggressive buyers should move quickly on appropriately priced properties. Well-priced homes still attract multiple offers. Sellers are confident in demand, but should not overprice. Data shows buyers are aggressive but not desperate, leaving overpriced homes unsold.
The pace of price increase was slow
The median sales price in Chicago reached $379,900 in May, an increase of 5.4% from the same month last year. Although this is a continuing upward trend, it has slowed down from the 8.3% year-on-year increase in 2024 and the 6.1% increase last year. Chicago’s rate of increase was higher than the nation’s (where prices rose just 1.9%), but the gap has narrowed.
To put this data into perspective, Chicago’s median sales price has nearly doubled since its post-recession lows. The most rapid growth occurred during the pandemic, when prices rose by $50,000 in less than two years. The current pace of growth is much more sustainable, averaging around 5-6% per year from mid-2024 onwards.
However, home hunters shouldn’t wait for sellers to lower their prices. Only 11% of active listings in Chicago have had price reductions, compared to 20% nationally. That being said, sellers who offer discounts reduce prices by an average of 4% off the list price. Sellers need to price in line with the market, and buyers need to make competitive offers.
Inventory is maintained stably
The number of active listings remained flat at 26,679, an increase of less than 1% year over year. After several months of slow increases, it was almost flat. The number of new listings increased by 4%, indicating more homeowners were choosing to sell. Combined with 3.1 months of supply (compared to 3.5 months nationally), Chicago remained a tighter market than the U.S. overall.
The data highlighted a market that is unevenly normalizing. Inventories peaked around multi-year rebuilding levels, but demand absorbed much of it before supply could meaningfully build up. For buyers, this means they have the same number of options as last year, but still have limited influence over prices.
All data is a Redfin analysis of MLS, U.S. Census Bureau, and county records data. For more detailed housing market data, check out the Redfin Data Center.
