Chicago home sales are slowing down

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.