Chicago home prices reach record highs amid sales drop, low inventory

June was a record-setting month for Chicago’s housing market, with home prices soaring to all-time highs even as the number of homes sold plummeted to a 13-year low.

The housing market in Chicago and the surrounding metro area saw significant changes in June, primarily in home prices and sales volume, Crain’s reported. 

Chicago’s median home price in June was $379,925, marking a 6.3 percent rise from $357,500 a year previously, according to Illinois Realtors. This sharp increase in home prices reflects persistent demand from buyers, coupled with limited supply. 

The number of homes sold has decreased significantly. While buyers are willing to pay more for available properties, the overall inventory remains low, leading to fewer transactions.

Home sales in Chicago — which include single-family homes and condominiums — dropped by 15 percent year-over-year, with 2,235 homes sold in June compared to 2,630 a year prior. The inventory of homes for sale in Chicago also decreased, with only 4,826 homes available in June. That was an 8.6 percent drop from the 5,281 homes on the market during the same month last year. 

According to Erika Villegas, president of the Chicago Association of Realtors, the persistent shortage of inventory is likely impacting both the sales volume and the median sales price, as many potential buyers choose to wait for more favorable conditions to enter the market.  

Similar trends were observed in the nine-county Chicago metro area, which includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties. 

The median sale price of homes in the metro area hit a record high of $375,000 in June, a 7.1 percent increase from $349,995 a year prior. Continued price growth indicates robust demand in the suburbs. 

However, home sales in the metro area also declined, with 8,661 homes sold in June, down 15.3 percent from 10,221 homes sold a year prior. The inventory of homes throughout the metro saw a slight increase, with 13,253 homes for sale in June 2024 compared to 13,202 at the same point last year, a marginal rise of 0.4 percent.

“Prices continued to rise in June, but forecasts suggest a typical seasonal decline in the coming months,” Daniel McMillen, professor of Real Estate at the University of Illinois-Chicago, told Illinois Realtors. “The number of sales is forecast to decline also. Surveys indicated that consumer confidence in the economy remains at approximately the same level that it has been for the past few months.”

— Andrew Terrell

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