As inventory remained tight, both annual and December home sales were down at the end of 2023, according to a new report from the Chicago Association of REALTORS®.

In December alone, statewide home sales were down 6.1% year over year with 9,174 homes sold. During that month, 17,291 homes were up for sale: a 22.7% decrease. Meanwhile, the median price increased 8.5% to $255,000.

In the Chicago metro area, 6,013 homes were sold, marking a 6.8% decrease. At the same time, there were 11,266 homes on the market, a 27.1% decrease, and the median price increased 7% to $307,000.

In the city proper, though, sales increased 1.6% with 1,470 December sales. However, inventory was down 27.3% with 4,171 homes on the market. In turn, the median price increased 7.8% to $310,000.

Annually, the picture was similar. The state ended 2023 with 132,120 total sales, an 18.3% decrease from 2022, while the median price increased 3.5% to $269,000.

In the Chicago metro area, annual sales slid 20.1% with 89,482 total homes sold while the price increased 4.6% to $324,900.

In the city proper, sales were down 20.9% with 22,400 total homes sold. However, the median price was also down, dropping 1.5% year over year to $330,000.

Reflecting on the data, the report offered a positive outlook. “Although the housing market is continuing its trend of low sales and relatively high prices, our forecast is that sales will increase over the next three months,” said Dr. Daniel McMillen, professor of real estate and associate dean for faculty affairs at the University of Illinois-Chicago College of Business Administration. “Consumer confidence has increased significantly as interest rates and the rate of inflation have declined.”

CAR President Drussy Hernandez also highlighted December’s high prices as a sign that buyers are committed to purchasing. “With the anticipation of lower interest rates, we hope to see this increased activity continue into 2024,” she said.