After months of subdued activity, suburban Chicagoland’s housing market may be showing signs of renewed momentum.
New data from Mainstreet REALTORS® shows homes under contract increased year over year in May, with pending sales rising 4.7% for detached homes and 7.1% for attached homes. The gains mark the strongest annual increase in contract activity recorded so far in 2026 and could signal signs of a warming market.
According to Mainstreet REALTORS® President Kinga Korpacz, many consumers appear to be adjusting their expectations around inventory and mortgage rates.
“People have gotten tired of waiting and hoping that inventory will improve or that mortgage rates will go down further,” Korpacz said. “They’ve decided it is now or never.”
The increase in pending sales comes as affordability concerns begin to ease across the region, the report notes. Median prices continued to climb in May, with detached homes reaching $440,000, up 4.8% from a year earlier. Attached homes posted a median sale price of $290,000.
At the same time, affordability metrics have improved. The Housing Affordability Index reached 110.6 in May, nearly 10 points higher than a year ago. The index measures whether a typical household earns enough income to afford a typical home, with readings above 100 indicating that the typical household can qualify for the median-priced property.
“Affordability is still a major issue in Chicagoland, but with incomes improving and mortgage rates easing somewhat, more people may be feeling they can afford to enter into homeownership or make a move,” Gormley said.
Whether stronger contract activity translates into higher closed sales in the coming months remains uncertain, according to the report. Inventory remains constrained throughout much of the region, and buyers continue to face competition for updated, move-in-ready homes.
Several suburban communities posted especially notable increases in detached homes under contract during May. North Riverside led the region with a 400% year-over-year jump, followed by Merrionette Park at 300% and Willow Springs at 200%. Beecher, Keeneyville-Roselle, Vernon Hills, North Aurora, Bellwood, North Chicago and Western Springs also recorded substantial gains.