Chicago housing market ahead of national trends

Tight inventory has driven sales as buyers rush to buy available homes

(iStock/Illustration by Kevin Rebong for The Real Deal)
(iStock/Illustration by Kevin Rebong for The Real Deal)

Chicago had an increase in year over year home sales for January 2022, in contrast to the national average decrease of 2.3 percent, according to a report from Compass, a national real estate brokerage company.

The report focused on three markets: Chicago, Dallas and Nashville.

“It is astonishing to witness how very little there is to purchase, coupled with buyers looking to scoop up what remains to try and lock in lower mortgage rates,” Compass’ Senior Managing Director, Elizabeth Stribling-Kivlan said of her findings. “This is evidenced in how quickly homes are continuing to sell, with the national average days on market at 19 days in January 2022, down from 21 days in January 2021.”

The report also said Chicago’s housing inventory dropped by 32.7 percent from January 2021 to January 2022, roughly double the national average, which decreased by 16.5 percent during the same period.

Stribling-Kivlan said the spring market, the time of year when home sales ramp up, is already starting strong for single-family homes in Chicagoland. There is a 33.5 percent increase from this time last year with properties under contract, showing strong demand.

“According to local Compass agents, multiple offers and offers with few to no contingencies are still common in many areas yet buyers are willing to exercise more patience than they were at this time last year,” Stribling-Kivlan said.

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The new report comes after a similar January report that showed Chicago’s hot housing market was likely to continue.

Pent-up demand continues to outweigh new supply, driving competition and price growth that will continue to give sellers an advantage. After steep declines in the inventory of homes available in 2020 and 2021, 44 percent of the agents expect supply to improve. Of the total, 39 percent said it will stay the same while 18 percent responded that inventory will decrease.

According to that report, local realtors expect demand for homes seen during the pandemic to spill over into 2022, preventing a substantial increase of homes from accumulating on the market. This led 66 percent of respondents to predict that 2022 will continue to favor sellers.

Single Family Homes

  • Overall Number Of Homes Sold
    1,698 – January 2021
    1,821 – January 2022
    +7.2 percent Change Year Over Year
  • Median Sales Price
    $312,000 – January 2021
    $312,000 – January 2022
    0 percent Change Year Over Year
  • Average Percent Of List Price Received
    96.8 – January 2021
    96.3 – January 2022
    -0.5 percent Change Year Over Year
  • Median Days On Market
    84 – January 2021
    85 – January 2022
    +1.2 percent Change Year Over Year
  • Inventory Of Homes For Sale
    4,147 – January 2021
    2,790 – January 2022
    -32.7 percent Change Year Over Year


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