Homes still selling fast in Illinois, though Chicago shows slower price growth

by Emily Mack

Homes were selling faster — at higher prices — in the state in July, according to new data from Illinois REALTORS®. The news comes following a month of decreased mortgage rates and tight inventory.

Though statewide home sales were down 22.6%, year over year, houses were moving fast July 2022. The average Illinois home sold in 20 days, down five days from a year ago. Competition was high last month with 27,910 homes on the market: an inventory decline of 19.1% from 2021. And, amid that shortage, the median price increased 4% to $272,975.

In the Chicago metro area, the changes were even starker. In total, 10,400 homes (both attached and detached) were sold in July— a 25.6% year-over-year decrease — while the price rose to $325,000, reflecting a 4.8% bump.

Speaking in a press release, Illinois REALTORS® President Ezekiel “Zeke” Morris expressed no surprise at the numbers. “The home sales we saw in July are to be expected considering overall economic uncertainties,” he said. “But fortunately for sellers, their homes still sold briskly.”

Looking toward the future, Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration, also offered his perspective. “Increases in interest rates and concerns about inflation have caused a decline in consumer confidence in the economy and may lead to lower price growth in the future,” McMillen said.

Within the city proper, that trend is already apparent. The median price of a Chicago home rose only 1.4% from last year; it was $350,000 during July 2022. Home sales, though, were more aligned with the rest of Illinois. Down 27.6%, 2,426 homes sold in Chicago last month.

“Home prices held steady,” Antje Gehrken, president of the Chicago Association of REALTORS®, said in the press release. “Inflation and increased mortgage rates are having an impact on the market, as we saw home sales decline in July.”

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