It was another unusual year in Illinois real estate as sales slipped while prices remained high. New data from the Mainstreet Organization of REALTORS® outlines the details across Chicagoland.
According to Mainstreet, a total of 35,741 single-family suburban homes were sold during 2022: a 22.5% decrease year over year. But continued low inventory kept prices up. The median sales price for a detached suburban home rose 5.5% to $343,000 in 2022.
The suburbs which saw the steepest sales declines throughout 2022 were, in order: River Grove (down 37.9%), Glen Ellyn (down 37.3%), Roselle (down 36.4%), Long Grove – Lake Zurich – Hawthorn Woods – Kildeer (down 35.1%), Bartlett (down 34.7%), Streamwood (down 33.6%), Wood Dale (down 33.3%), Oak Brook (down 33.1%), Bloomingdale (down 31.5%), Willowbrook (down 31.4%), Oswego and Vernon Hills (both down 31.1%), Hainesville – Grayslake and Rolling Meadows and Niles (all down 31%), ) Batavia (down 30.9%), Keeneyville – Lombard (down 30.8%), Mundelein (down 30.7%), Palatine (down 30.4%) and Arlington Heights (down 30.0%).
Meanwhile, in December 2022 alone, 2,172 single-family homes were sold, down 38.2% year over year, with the median sale prices increased 1% to $315,000.
“Last year started out with the pandemic … where buyers were actively pursuing home purchases and the market was really competitive,” Mainstreet President Debbie Pawlowicz said in a press release. “[But] it ended with continued low inventory and higher interest rates, aiming at a more balanced market.”
Looking ahead, Dr. Anthony Chan, the chief economist and chairman of Chan Economics LLC, predicted a mild recession in the back half of 2023. He shared those thoughts recently at Mainstreet’s 2023 Economic Outlook Breakfast
“We know that we get a recession every 5.3 years, on average, certainly over the last 60 years. But a recession only lasts an average of 10.3 months,” Chan said. “This is a bump in the road, but it’s not a permanent bump. Things are going to get better eventually.” He also predicted that interest rates will not exceed 4.4% by the end of the year.
“It will be interesting to see what 2023 brings, but I do think there is some seasonality returning to the market,” Mainstreet President Debbie Pawlowicz concluded in the press release.