Chicago Home Prices Rising as Buyers Tire of Waiting

After a quiet stretch induced by high mortgage rates, signs of buyer momentum are emerging in Chicago’s housing market.

Chicago-area home sales posted modest price gains in March, signaling a cautious return of buyers even as high mortgage rates and limited inventory continue to weigh on affordability.

The median sale price in the nine-county metro area rose to $320,000, up from $310,000 in March 2024, the Chicago Tribune reported citing data from Illinois Realtors.

In Chicago proper, the median price ticked up 1.4 percent year-over-year to $342,500. Closed sales volume also showed signs of life, with 1,775 homes sold in the city — up slightly from 1,749 the year prior.

The Illinois Realtors data reflects closed transactions, offering a clearer look at what buyers are actually paying.

The numbers suggest that while sellers may be feeling confident, buyers are still negotiating carefully, especially with borrowing costs near 7 percent.

Agents say much of the demand is driven by life changes and lingering buyer fatigue from earlier market frenzies.

“A lot of buyers got worn out in 2021 or 2022,” said Compass agent Jeff Proctor. “Now that things have calmed down, they’re jumping back in.”

But affordability challenges are acute. Buyers are highly selective, often avoiding homes that feel overpriced or require substantial upgrades. Updated listings are still drawing multiple offers, while others linger or take price cuts.

Some would-be sellers are locked into low mortgage rates and reluctant to list, but still others are holding off for clearer economic signals. Uncertainty around inflation, interest rates and geopolitical events including potential new tariffs is keeping many households in wait-and-see mode.

The year-over-year price growth and stable sales figures point to a market that may be finding its footing. The data also shows Chicago holding up better than many national markets, where price cuts and demand softening are more common.

— Judah Duke