Real estate in review: an unprecedented year for Chicagoland

by Emily Mack

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.

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