Chicago homes sell faster, prices rise as inventory shrinks

Chicago homes sold more briskly and prices rose last month, defying rising mortgage rates and recession worries, as inventory shrank.

Homes in the Chicago metropolitan area stayed on the market for 19 days, compared with 22 days in June 2021, according to a report from the Chicago Association of Realtors. Prices rose 6.6 percent to $340,000, higher than the city itself, where they increased 4.7 percent to $367,000. Inventory in the Chicago metropolitan area shrank to 18,819 homes from 23,481.

Higher prices show “there is still buyer demand this summer, although it’s restricted by inventory, impacting sales,” said Antje Gehrken, the president of the Chicago Association of Realtors.

The monthly average for a 30-year, fixed-rate mortgage was 5.52 percent last month, compared with 2.98 percent in June 2021, according to Freddie Mac data.

Some 12,764 metropolitan area homes sold, down from 15,743 homes in June of 2021. That data include single-family and condominium homes across the nine-county Chicago area. In Chicago proper, 3,293 homes sold last month, down from 3,908 last June.

This year brought both highs and lows for the Chicago market, where plenty of luxury sales closed in the first several months of 2022. Condo sales lagged behind single-family homes, as condo inventory is typically dated and less affordable for people who want to live downtown. Realtors are also starting to brace for a recession, as mortgage rates rise and more buyers pull out of the market due to less spending power.

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