Market Statistics
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% yearover-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
Inventory
New Listings in the City of Chicago were down 14.4 percent for detached homes and 32.5 percent for attached properties.
Listings Under Contract decreased 28.4 percent for detached homes and 37.5 percent for attached properties.
Listings
The Median Sales Price was down 6.8 percent to $275,000 for detached homes and 12.6 percent to $300,000 for attached properties.
Months Supply of Inventory increased 21.6 percent for detached units but decreased 6.5 percent for attached units.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
Current as of January 14, 2023. All data from Midwest Real Estate Data reflecting activity within the 77 officially defined Chicago community areas. Report © 2023 ShowingTime.
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