Jul 18, 2022 - Real Estate

Chicago's real estate market is slightly shifting

Illustration of a downward trend line over a house
Illustration: Rebecca Zisser/Axios

With pending home sales down 15.8% year over year, Chicago's real estate market is showing early signs of slowing down. But median home prices are still up 4.8% from May 2021.

Why it matters: Despite predictions of a market crash, so far, local data doesn't support the idea.

Yes, but: Monthly reports show early signs of a cooler market, even if it's slight.

What’s happening: Demand is leveling off. More buyers are holding off as homeownership becomes too expensive.

  • From May 2021 to May 2022, new listings were down 13% and pending sales were down nearly 16%.
  • This comes after mortgage rates surpassed 5% for the first time in 10 years.
  • Home-price growth is still slower here than the national median.
Data: Redfin; Chart: Kavya Beheraj/Axios

Zoom out: Nationally, mortgage applications were down 24%. On average, 6.5% of sellers dropped their asking price each week in June, per Redfin’s latest market update.

  • In June, national pending home sales were down 13% from this time last year, which Redfin says is the largest decline since May 2020.

Be smart: Inventory is still critically low overall, which continues to push home prices up.

What we're watching: New listings and pending sales. If more listings flood the market this summer without buyers biting, we will start to see more power shift into buyers' hands.

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