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Chicago

Chicago area home prices jumped with limited inventory in February: Report

Homes sold in the Chicago area were on the market for an average of 39 days last month, compared with 45 days in February 2021

(iStock/Photo Illustration by Steven Dilakian for The Real Deal)
(iStock/Photo Illustration by Steven Dilakian for The Real Deal)

Homes in the Chicago area sold quicker last month than in the prior February, and the median home price continues to rise.

Homes sold in the Chicago area were on the market for an average of 39 days last month, compared with 45 days in February 2021, according to Illinois Realtors, a trade association of residential real estate brokers in the state. Suburban home sales accounted for a lot of that movement, and homes within the city of Chicago averaged 49 days, compared with 50 in 2021.

“Although home sales in Illinois dipped from last year, homebuyers still snatched up what they were looking for quickly to lock in financing before mortgage rates rise again,” said Ezekiel Morris, president of Illinois Realtors.

In Chicagoland, the median sale price was $290,000, an increase of $20,000 from February 2021’s median sale price of $270,000. Home sales were down due to inventory constraints. In February 2022, 6,935 homes were sold in the nine-county Chicago region, down from 7,146 homes at the same time last year.

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The data within the city of Chicago tells a different story. The median sale price of a city home was $320,000, the same as in February 2021. In Chicago, there were 1,879 homes sold this February, up from 1,658 homes at the same time last year.

Morris, also a broker at EXIT Strategy Realty/EMA Management on the South Side of Chicago, said concerns over inventory persist in Chicago, but brokers are optimistic about the spring, when home buying typically ramps up.

“The number of sales will pick up with the arrival of spring, but the number of listings remains low by historical standards,” said Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago. “Inflation continues to be a concern for consumers, and the recent rate increase by the Fed is likely to lead to a rise in interest rates, although rates remain low.”

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Homes SalesHousing Market