Chicago Real Estate Market Update: Prices Defy Seasonal Trend, Outpace National Average

The Chicago housing market demonstrated unexpected strength in September, with the median listing price rising to $369,500 despite typical seasonal cooling. Key metrics indicate a competitive environment: inventory growth was slower than usual, and homes sold in just 38 days, significantly faster than the national average. This analysis breaks down the latest data for buyers and sellers navigating the Windy City's dynamic market.

What Were the Key Price Trends in Chicago?

In September, Chicago's median home listing price experienced a moderate increase, reaching $369,500. More notably, the price per square foot, a critical metric for comparing value across different property sizes, increased by 0.7% from the previous month. This defies the typical seasonal pattern where prices often soften in the fall. When compared to the national market, where the price per square foot decreased by 0.8%, Chicago's appreciation is clearly outpacing the country as a whole. This suggests underlying demand strength specific to the local economy.

• Chicago Median Listing Price: $369,500
• Monthly Change in Price Per Sq. Ft.: +0.7%
• National Monthly Change in Price Per Sq. Ft.: -0.8%

How Does Housing Inventory Affect Buyers and Sellers?

The number of homes for sale, known as active inventory, saw a 3.4% increase from August to 4,387 listings in September. However, this growth is smaller than what is historically expected for this time of year. Furthermore, inventory remains 16.6% lower than it was in September of the previous year. Nationally, inventory grew by a mere 0.2%. This constrained supply in Chicago, coupled with steady demand, continues to create a seller-friendly market, contributing to rising prices and quick sales.

How Long Are Homes Taking to Sell?

The speed of the market is measured by the average days on market (DOM). In September, the average DOM for a Chicago home was 38 days. This is one day faster than the previous month and matches the pace from the same time last year. The most striking comparison is with the national figure; homes across the U.S. spent an average of 62 days on the market. Chicago homes are selling 39% faster than the national median, highlighting the city's competitive nature for buyers.

For sellers, this means well-priced properties in good condition are likely to receive offers quickly. For buyers, a low DOM underscores the need for pre-approval and readiness to act decisively when they find a suitable property.

What Does This Mean for Your Real Estate Decisions?

Based on the September data, the Chicago market favors sellers but requires strategic action from all parties.

• For Sellers: The environment is advantageous. With prices rising against the national trend and inventory remaining tight, listing your property now could yield a strong offer. Ensuring your home is priced correctly from the start is critical to capitalizing on the fast 38-day sales pace.
• For Buyers: Competition is stiff. The combination of low supply and high demand means you must be prepared. Obtaining a mortgage pre-approval is not just recommended; it's essential to compete effectively. Be ready to move quickly when you find a home that meets your criteria.

The Chicago real estate market continues to show resilience. While national trends may indicate a cooling period, local dynamics in the Windy City are driving a distinct and competitive landscape. Monitoring these key indicators—price per square foot, inventory levels, and days on market—will be vital for making informed decisions in the months ahead.