Chicago’s Low Inventory Keeps it a Home-Seller’s Market

Homes sold in an average of 37 days in Chicago this August, faster than nearly every other major city.

Nationally, deals took 60 days on average, a slowdown from last year, Crain’s reported.

Oak Park real estate agent Swati Saxena told the outlet that one of her listings on Ridgeland Avenue went under contract in five days at $652,000, while buyers she represented grabbed a $935,000 Grove Avenue house just as fast. Both closed in August, a month when Chicago tied for the nation’s second-fastest-selling housing market behind Milwaukee, according to Realtor.com. Chicago tied for second-fastest with Buffalo, New York, Grand Rapids, Michigan and Cincinnati.

In Chicago, sales were only a day slower than August 2024, signaling resilience even as interest rates and prices kept many markets in check.

Low supply is the culprit. Illinois had one of the steepest inventory drops in the nation, with Chicago buyers facing less than 40 percent of the listings available in 2019, housing tracker ResiClub reported. That shortage keeps demand concentrated on the “good” listings — those well-priced, well-located or turnkey — which in many cases spark bidding wars and premiums over ask.

In La Grange, Coldwell Banker’s Judy Ellison and Teresa Fox sold a 1920s Stone Avenue house for nearly 15 percent over list in mid-August after it found a buyer in two days. In Lakeview, Compass agent Tony Mattar priced a condo low to draw multiple offers and sold it in a week for 2.6 percent over ask. And in Avondale, Baird & Warner’s Patrick Hinton watched at least a dozen households flood an open house before his condo listing landed a buyer six days later, closing above ask.

The “circular problem,” Ellison said, is that many owners won’t sell without knowing where they’ll go next. That keeps fresh supply from hitting the market, which in turn fuels even more aggressive buyer behavior. For renters feeling squeezed, the urgency is amplified. In the West Loop, Compass agent Quentin Green’s clients jumped on a $910,000 condo with a rooftop deck in five days, citing ballooning rents.

As fast as these transactions are, there is still room for fallout. Chicago had 16 percent of pending home purchase agreements fall through in July, up from about 15 percent a year prior, according to Redfin. Contract cancellations were similarly high in July 2023, when 16 percent of pending deals fell through.

Not every property flies — overpriced or less appealing homes can linger — but for listings under $1 million in hot neighborhoods like Lincoln Park, speed is the rule. As one broker put it, if it doesn’t sell in a week, something’s wrong.

— Eric Weilbacher