Featuring the perspectives of local brokerage executives:

Jennifer Ames & Karen Arenson
License Partners, Engel & Völkers Chicago

Diane Glass
CEO, Berkshire Hathaway HomeServices Chicago

Mike Golden
Co-Founder/Co-CEO, @properties Christie’s International Real Estate

Lutalo McGee
Owner, Ani World LLC and Ani Real Estate

T.J. Rubin
President/Founder, Fulton Grace Realty

What do you expect for the overall housing market in 2025?

Mike Golden: We expect to see a robust housing market in 2025. While I don’t see price growth, given the state of the economy and interest rates falling, volume should pick up, providing more inventory and more transactions. The number of annual transactions in the U.S. has been historically low for a few years, and the market is primed for growth. Between people sitting on the sidelines waiting for rates to drop (which they are) and the fact that life has gone on and people have waited to move, there is a huge opportunity for higher market volume for 2025 and beyond.

Diane Glass: I see the housing market up slightly for 2025. Inventory continues to be extremely low, but as interest rates are reduced, more buyers who have not been able to find a home due to limited supply or high competition will get off the sidelines and back into the market, and sellers will be able to purchase at a more reasonable rate. I think there will be an increase in prices, but not at the same rate as we’ve seen.

Interestingly, going back to 1980, in nine of the last 11 years where there was a presidential election, we saw an increase in homes sold the following year. In the last 32 years, the increase in sales was 5.75% the year after the election.

Lutalo McGee: Based on the predictions of several economists on the general economy, I think the market will remain stable. Efforts are underway to increase housing supply, but I don’t think much will change before the middle to end of 2025. This may result in some sellers’ staying on the sideline and prices’ remaining elevated.

Jennifer Ames and Karen Arenson: Nationally, we anticipate modest price growth and increased transaction volume as mortgage rates gradually decline, encouraging more homeowners to sell. Markets that saw rapid appreciation are cooling, bringing greater balance.

Locally, Chicago’s housing market will continue to reflect its diverse micro-markets. Niches with strong demand and limited supply — like affordable homes for first-time buyers, move-in-condition single-family homes and select suburbs — will remain highly competitive.

Downtown condos and high-end property inventory is growing, exerting downward price pressure. Inventory in the North Shore saw slight growth in Q4 2024; if this trend reverses, prices could climb another 2.5% in early 2025. A slight drop in mortgage rates may fuel demand, potentially spurring bidding wars in specific Chicagoland markets.

What growth, if any, do you expect for your company next year?

McGee: Ani Real Estate is entering an aggressive and intentional expansion phase, and we expect our growth to continue. We are proud to boast one of the most effective hands-on training models in the industry, where brokers are guided through their first transactions by an assigned coach. Brokers at Ani celebrate this guidance, as it gives them comfort to know they are not alone to figure things out. In our view, the brokerage’s initial primary obligation to the broker is to teach them how to handle clients and transactions, how to generate leads and get them to a level of comfort where they can confidently operate independently.

T.J. Rubin: Fulton Grace is poised for continued growth in 2025 across both city and suburban markets. In 2024, we expanded our presence in the western suburbs with new office openings in Elmhurst and Elk Grove Village, drawing exceptional talent to these areas. We are excited to further invest in these communities and increase our market share.

A key element of our growth strategy is supporting the success of our existing agents. We plan to strengthen our commitment to our agents by investing in advanced technology, innovative digital marketing and both group and individual coaching. As the real estate landscape evolves, it’s more critical than ever for agents to demonstrate their value to today’s well-informed consumers. We are committed to providing our agents with the tools and resources they need to convey their expertise and position themselves as essential partners in the real estate journey.

Ames and Arenson: Our company’s collaborative culture, strong mentorship, diverse educational opportunities and hands-on support have made us a top choice for professionals seeking to elevate their businesses. In 2024, we grew our advisor count by 27%. We expect continued strategic growth in 2025 by welcoming individuals and teams who align with our core values, boutique shop model and global network.

While many competitors struggled, our 2024 sales rose 22% year over year, thanks to our talented advisors and robust referral network. We anticipate further growth in 2025 as more Chicagoland consumers recognize the caliber of our brand and as more agents seek the advantages of affiliating with us.

Golden: We expect to grow in the 10% range.

Glass: This market brings a lot of opportunity. Agents who fully understand the new license law regarding buyer agency agreements and can articulate their value proposition to both buyers and sellers will stand out and do more business. Those who bring more inventory to the market will also excel, as more listings typically translate into more sales.

Additionally, I see a big opportunity with first-time homebuyers. With rental prices being so high, we have an opportunity to show them that even if interest rates are not where they want them to be, it is still more economical to buy and invest their equity in themselves.

What will be the biggest challenges for agents in 2025, and how can they overcome those challenges?

Ames and Arenson: An evolving landscape will continue to challenge agents; a focus on enhanced client services, market expertise and grit will be essential to their continued success. Agents must be able to articulate their value proposition, educate clients on their expertise and stay informed about opportunities to enhance their business.

By refining their negotiation, digital-marketing and client-relationship skills, agents will be better prepared to navigate market fluctuations effectively. Our company’s offerings, including strategic training and support, help agents address these challenges head-on.

Glass: I think helping buyer clients will be the biggest challenge for agents in 2025. The tight inventory and lack of choice will mean that agents need to educate their clients about the market early. They need to involve their mortgage professionals immediately, prepare strong offers and advocate fiercely for their clients during negotiations. Staying in front of past clients, attracting new ones, investing in AI and utilizing CRMs will be helpful.

Golden: Inventory will remain a challenge — while it will improve, we are still an underbuilt market. Construction costs remain high, which will continue to impede growth of housing stock. There are also the unknowns, given the change in administration, although I expect that to dissipate fairly quickly in early 2025. Being prepared for the market by getting in touch and communicating with your clients and vamping up your personal marketing efforts now will lay some great groundwork for success in 2025.

McGee: The biggest challenge and opportunity for agents will be communicating their value to their clients, especially when representing buyers. I have been coaching my brokers through mock interviews with their peers and personal coaching to help them best articulate their value proposition. I tell my brokers: We are the flashlight in a dark forest, and we are here to illuminate potential risks and obstacles ahead and help our clients navigate them.

Also, with inventory possibly continuing to be low, brokers will be challenged with finding properties for their clients. We have been working on innovative ways of identifying supply, using tools they already have access to, like Remine, included with their MRED subscription.

Many sellers are still on the sidelines due to limited movement on interest rates, and brokers will also need to help sellers understand their options, potential scenarios and impacts of each. It is important that they ensure they are staying in touch to be a resource for information for when they are ready to make a move. We coach that it is a two-year pipeline.

Rubin: One of the primary adjustments in 2025 will be adapting to the new NAR settlement regulations and heightened commission transparency. Laws governing commissions and buyer-agent relationships are shifting, bringing increased focus on transparency and new cooperative commission payment processes. Agents should be ready to clearly communicate and justify their value in an industry where traditional commission structures have been redefined.

Another key challenge will be the rise of tech-driven real estate platforms that aim to streamline or even bypass the traditional agent model. Additionally, advances in AI and machine learning now support core agent activities, such as lead generation, market analysis and client communication, challenging agents to find ways to provide value that technology alone cannot replicate.

Customer service expectations are also rising. Clients now expect higher levels of service, responsiveness and guidance from their agents, largely due to regulatory shifts, tech innovations and the increasing availability of real estate information. Agents must prioritize relationship-building through clear communication and transparency, consistently demonstrating their unique value proposition.

In 2025, agents who embrace technology, stay informed on industry changes and focus on delivering an exceptional customer experience will be well positioned to succeed.

Which suburbs or Chicago neighborhoods have the brightest housing outlook in 2025?

Rubin: The western suburbs are expected to have a strong outlook in 2025, particularly in areas like Elmhurst, Western Springs and Hinsdale, which are attracting a steady influx of former city residents. These suburbs offer city-like amenities, including vibrant commercial districts and access to public transportation, making them appealing for those seeking a balance between suburban and urban lifestyles. Elmhurst, in particular, provides a range of upscale housing options, from luxury apartments and condos to single-family homes, with consistent new construction available to meet demand.

In the city, Near West neighborhoods, such as Fulton Market, Wicker Park/Bucktown and Logan Square, will remain highly sought-after areas. Meanwhile, Near South neighborhoods such as Bronzeville, Kenwood, Hyde Park and Woodlawn are also set to see steady growth, driven by accelerated buyer demand and increased builder confidence.

Glass: In the city, the Near North neighborhoods of Lincoln Park, Lakeview and West Town are always in demand. Neighborhoods like Logan Square and Humboldt Park offer opportunities at lower price points, and Edgewater and Uptown have the added benefit of recent Red Line infrastructure upgrades. In the suburbs, those with vibrant downtowns, high-in-demand schools, parks, youth programs and easy access to Chicago via train are always going to be desirable. Communities along the North Shore like Evanston, Glenview, Wilmette and Winnetka are bright, with existing homes and teardown options available. In the west, communities like Downers Grove and Westmont have a number of “starter”-priced homes available, as well as homes that are affordable enough to tear down and replace with larger homes if desired.

Golden: The West Loop and the prime neighborhoods like Lincoln Park, Lakeview, Bucktown, Roscoe Village and Lincoln Square in the city remain very desirable. We expect the close-in suburban market, whether it be Wilmette/Winnetka or Hinsdale/Western Springs, to continue to be strong.

McGee: Buying and selling a home is a deeply personal process with many different motivations. Chicago is a city of 77 neighborhoods, with every one behaving a little differently. Even different properties are reacting differently. It is important for clients to discuss their goals with a Realtor.

Check out this year’s other predictions below!