Chicago Housing Market: Prices | Trends | Forecasts 2022
September 14, 2022
September 1, 2022 By Marco Santarelli
Illinois Housing Market Update
We'll discuss the latest trends and projections for the Chicago housing market. Prices are expected to continue to increase through the rest of the year while the number of sales is expected to decrease. As demand remained robust and mortgage rates climbed, Illinois houses sold faster in May 2022 than in May 2021, according to data from Illinois REALTORS®.
In May 2022, 16,194 single-family and condos were sold statewide, down 10.1% from May 2021. Comparing May 2022 to May 2021, the typical Illinois house sold in 24 days. May 2022's statewide median price was $276,000, up 6.2% from May 2021. Half of the properties sold for more than the median, while half sold for less. In a seller's market, real estate prices increase. The strong buyer demand is driving prices in the Chicago metro area as compared to the previous year. The median house selling price in the Chicago Metropolitan Area was $327,000 in May 2022, a 5.5% rise from $310,000 in May 2021.
In the nine-county Chicago Metropolitan Area, 11,641 single-family and condominium residences were sold last month, a 10.6 percent reduction from the 13,016 homes sold in May 2021. In May 2022, the median house price in the city of Chicago was $352,500, a 0.7 percent rise from May 2021, when it was $350,000. In Chicago, house sales (single-family and condos) reached 3,299 in May 2022, a decrease of 4.5 percent compared to May 2021 sales of 3,458 residences.
According to Fannie Mae’s latest set of predictions for 2022, home price growth in the United States is forecasted to be slower than in 2021, but still, be strong by historical standards. So, what are the projections for the state of Illinois in 2022? Well, according to the housing forecast published by the Illinois Association of Realtors and presented by Regional Economics Applications Laboratory, Institute of Government and Public Affairs University of Illinois, in 2022, median prices are expected to grow continuously within a narrower and lower range than in 2021 (source).
Year over year, these gains will range from 2.0% to 7.9% in Illinois and from 1.40% to 7.7% in the Chicago PMSA. By December 2022, the median home price in Illinois is expected to be $261,561 and in the Chicago PMSA, it will be $306,134, an increase of 7.9 percent and 7.6 percent, respectively. In 2022, both Illinois and the Chicago metropolitan area are expected to see overall negative growth in sales.
Annual growth in monthly sales is forecast to range between -4.1 percent and 11.5 percent in Illinois, with most months experiencing negative growth. The Chicago PMSA's comparative range is – 11.0 percent to -5.0 percent, with negative gains in all months. When foreclosed sales are excluded from total sales, forecasts for regular sales indicate a range of -6.8 to 9.6 percent growth for the Chicago PMSA.
