Chicago home sales are slowing down
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Home sales were down more than 28% year over year in the Chicago metro area, per RE/MAX's recent report on February data.
What's happening: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market, but people can't afford them, Axios' Brianna Crane writes.
State of play: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.
By the numbers: Chicago's slowdown was worse than the national average but still less severe than those in Miami and San Francisco.
- The median sale price for a Chicago-area home inched up from $284,000 in February 2022 to $285,000 last month.
- The number of days a home stayed on the market jumped from 29 to 36 over that period.
Between the lines: Because there's less competition right now, buyers don't have to front as much cash as they did a year ago, Axios' Emily Peck reports
What's more: Buyers who can afford these mortgage rates have more power.
- They choose from a wider variety of homes than they did a year ago and take their time searching.
- And they no longer have to make offers wildly above list price.
Yes, but: These interest rates also make buying unaffordable for many.
What's next: Mortgage rates dropped nearly a quarter-point this month, which means buyer activity will probably pick up again.