Buyers waiting for their big break in Chicago home prices might want to start prepping for the purchase process now. This year’s real estate market has been undoubtedly slower compared to recent years, with listings sitting on the market longer and selling for less than their typical market values. June sales data, courtesy of Midwest Real Estate Data, reveals just how much the market is beginning to soften and why this summer and fall might be the best times to get started on your Chicago home search.

To start, the year-over-year sales price growth we normally see is tapering. Other indicators of a shifting market, which include longer market times and fewer sales, are undisputable both from anecdotal (ask any Chicago real estate agent!) and data-backed standpoints.

As of June­­­, the median sales price for all residential property types in the city of Chicago grew to $319,000 – that’s a slight increase of 1.3 percent since last year. Per usual, condos – typically found in high demand areas closest to the city center – fetched a higher median price of $330,000. But, that’s just 0.9 percent higher compared to this time last year.

Although prices are still growing in the Chicago real estate market, sales are definitely dwindling. Overall, residential sales volume (i.e. the number of homes sold in Chicago) for June is 11.4 percent lower than it was just a year ago. Condo sales are falling further, with 13.6 percent fewer Chicago condos sold last month.

Homes for sale in Chicago spent a median 26 days on the market last month compared to 22 days in June 2018. Condos specifically had the same market time last month, but just 20 days last year.

How much does it cost to buy a home near downtown Chicago? ­

chicago home prices

Chicago real estate market changes by neighborhood: 2018 vs 2019

The Loop

  • Home prices up 16.8%
  • Closed sales up 11%
  • Market time flat
  • New listings up 6.9%

West Loop

  • Home prices up 8.8%
  • Closed sales up 6.8%
  • Market time up 146.2%
  • New listings up 15.6%

South Loop

  • Home prices up 7.1%
  • Closed sales up 1.2%
  • Market time down 13.3%
  • New listings up 1.5%

River North

  • Home prices up 2.6%
  • Closed sales down 41.6%
  • Market time up 51.7%
  • New listings up 8%

Gold Coast & Streeterville

  • Home prices down 6.3%
  • Closed sales down 34.1%
  • Market time down 29.1%
  • New listings down 0.8%

Old Town

  • Home prices down 4.4%
  • Closed sales down 30%
  • Market time up 46.7%
  • New listings down 4.5%

Lincoln Park

  • Home prices up 17.1%
  • Closed sales up 2.5%
  • Market time up 100%
  • New listings up 28.2%

Lakeview

  • Home prices up 7.4%
  • Closed sales down 14.8%
  • Market time up 23.5%
  • New listings up 4.2%

Logan Square & Bucktown

  • Home prices down 13.5%
  • Closed sales up 2.3%
  • Market time down 22.2%
  • New listings down 1%

West Town & Wicker Park

  • Home prices up 4.1%
  • Closed sales down 19%
  • Market time up 60%
  • New listings down 7%

Avondale & North Center

  • Home prices up 15.7%
  • Closed sales down 2.4%
  • Market time up 68.8%
  • New listings down 1.5%

 

Where’s the most expensive area to buy a condo in Chicago?

chicago condo prices

Is it a good time to buy or sell a home in Chicago?

Buying a home is a highly personal decision. We never recommend anyone stretch themselves to buy just because the data points to a buyer’s market. But, if you’re already financially prepared to buy in the next six to 12 months, it might not hurt to start the search early.

Overall, sales prices in Chicago aren’t necessarily lower than they were last year, but the odds of you having negotiating power as a buyer are much higher. There’s also the benefit of less competition right now. We hear a lot of buyers claim they are waiting until 2020 when many economists are expecting a downturn. It’s important to remember that consumers drive Chicago’s real estate market health – if there are droves of buyers looking in 2020, prices will not fall. Finally, interest rates are pretty good right now, hovering just under the 4 percent mark on a 30-year fixed rate.

For sellers, patience is key. Even the hottest neighborhoods are suffering from slow sales right now. For example, West Loop condos for sale are sitting on the market for a median of 31 days before going under contract (average of 72 days). This time last year, the median time on the market for West Loop condos was just 13 days. Chicago homes are selling, albeit slowly when compared to the extreme seller’s market shown between 2016 and 2018.