Market Conditions: Chicago May 2025 Sales Decrease 7.4% as Median Price Rose Again
This Illinois Association of Realtors is out with the May data.
As we know, inventory remains tight and sales remain low. Year-over-year sales fell again, but so did inventory.
It was the slowest May for sales since May 2020, when the real estate market was spooked at the start of the pandemic.
The city of Chicago experienced a 7.4 percent year-over-year sales decrease in May 2025 with 2,286 sales, down from 2,468 in May 2024. The median price of a home in the city of Chicago in May 2025 was $390,000, an 8.3 percent increase from May 2024 when the median price was $360,000.
May Sales:
- May 2008: 2119 sales
- May 2009: 1557 sales
- May 2010: 2057 sales
- May 2011: 1705 sales
- May 2012: 2037 sales
- May 2013: 2834 sales
- May 2014: 2453 sales
- May 2015: 2750 sales
- May 2016: 2980 sales
- May 2017: 3046 sales
- May 2018: 3047 sales
- May 2019: 2952 sales
- May 2020: 1701 sales
- May 2021: 3453 sales
- May 2022: 3374 sales
- May 2023: 2462 sales
- May 2024: 2468 sales
- May 2025: 2286 sales
Median Price Data:
- May 2008: $319,500
- May 2009: $225,000
- May 2010: $230,000
- May 2011: $190,000
- May 2012: $203,000
- May 2013: $234,000
- May 2014: $269,250
- May 2015: $281,000
- May 2016: $290,750
- May 2017: $305,600
- May 2018: $305,000
- May 2019: $315,000
- May 2020: $313,000
- May 2021: $350,000
- May 2022: $350,500
- May 2023: $335,000
- May 2024: $360,000
- May 2025: $390,000
“We continue to see the impact of low inventory on Chicago’s housing market, with fewer closed sales and steady buyer activity keeping prices on the rise,” said Erika Villegas, president of the Chicago Association of REALTORS® and broker and owner of RE/MAX In The Village. “Well-priced homes are still moving quickly, buyers and sellers alike should work closely with their REALTOR® to adapt their strategies in this fast-paced, competitive market.”
More condos are selling than single family homes in Chicago.
The mix of the sales:
- 1,486 condo sales, down 10%
- 800 single family home sales, down 2.1%
On pricing, median condo prices were up 4.4% to $412,500 while single family home prices were up 9.4% to $350,000.
Statewide, inventory continues to edge higher but it was coming off the all-time lows. Inventory rose 6% to 19,890 homes from 18,758 last year.
In 2025, statewide inventory is driven by the 9-county Chicagoland inventory, which rose 3.4% to 13,195 from 12,754.
However, the city of Chicago bucked the trend of rising inventory as it fell 13.2%.
- May 2019: 10,096
- May 2022: 7,115
- May 2023: 5,073
- May 2024: 4,934
- May 2025: 4,284
Will we see a “3” handle on inventory sometime this year?
I’ve been talking about the “available” inventory on Redfin for several months for some of the popular GreenZone neighborhoods.
As of June 29, 2025, Lincoln Park has 141 properties available and Lakeview had 194.
Lincoln Park has been between 125 and 150 for months. Lakeview had been 200-225 until recently where it dipped under 200.
These are at ALL price points.
If a buyer is looking in the popular $400,000 to $500,000 price range in Lakeview for a 2/2, there are just 5 properties available.
Going up to $600,000, the number of properties available was just 12.
You can see why there are bidding wars.
For those of you who were around during the housing bubble years, it’s shocking that there’s virtually no new construction on the market with the exception of a few small luxury buildings where units start over $1 million.
There are also no new downtown condo buildings under construction for the first time in 10 years. However, developers still have available units in several buildings that have finished construction.
Current inventory in River North (which doesn’t include everything because developers don’t list all of their units on the MLS) is just 303 units.
In Streeterville, it is 254 homes.
“Our three-month forecast expects home sales in Illinois to rise nearly 4 percent between June and August compared to last year. Prices are expected to remain relatively flat over the summer months, but end August roughly 7 percent higher year-over-year,” said Geoff Smith, Executive Director, Institute for Housing Studies at DePaul University in Chicago.
“In May 2025, Illinois single-family inventories experienced their 13th consecutive month of year-over year growth. Despite this, the state has seen one of the weakest recoveries to pre-pandemic inventory levels. Tight statewide inventories suggest that the market will remain highly competitive, but sustained inventory growth and increased days on market could be indications of improving conditions for homebuyers.”
The 30-year fixed rate mortgage was 6.82% in May 2025, up from 6.73% in April but down from 7.06% in May 2024.
In some states, inventory is rising quickly and is back to 2019 pre-covid levels.
When will Chicago see it rise?
Illinois home sales lower in May while median prices and inventory moved higher [Illinois Association of Realtors, Press Release, by Stephanie Sievers, June 23, 2025]
Most of the re-sale SFHs around me going for over ask–many $100k+ over ask. Gary would say they’re mispriced.
Yes, I would. Mine sold over ask and I knew it was mispriced when I listed it.
“Yes, I would. Mine sold over ask and I knew it was mispriced when I listed it.”
You listed it too low then Gary? Many people in Chicago are bidding over appraised value and comps. What’s a seller to do?
Gary, how is the North Carolina market holding up?
I haven’t heard as much about it compared to the slowdown in Florida and Texas. Nashville is slowing now as inventory rises. Not a big price plunge there yet.
Have people stopped moving in in droves?
“You listed it too low then Gary?”
Yes and it was intentional at my client’s (wife) request. There were tight timing constraints and we figured multiple bids would offset the pricing “error”, which it did to some extent.
The NC market has cooled off considerably since we moved here. In fact, it cooled within a few months of us closing – of course. Using online valuations our home here has appreciated at about the same amount that the home we sold in Chicago has.
What is more interesting is the lower Hudson valley (Westchester County) market. My daughter just bought there and it’s on fire. Like 18 bids on the house they bought. $300K over asking price on a $1.25 MM house and that was not unusual. Mostly all cash buyers.
“What is more interesting is the lower Hudson valley (Westchester County) market. My daughter just bought there and it’s on fire. Like 18 bids on the house they bought. $300K over asking price on a $1.25 MM house and that was not unusual. Mostly all cash buyers.””
All of the Northeast is red-hot. Builders weren’t building up there so when demand returned, prices have soared. This is similar to Chicago. Nothing being built and inventory is low. Multiple offers on most renovated properties. Suburban single family homes are insane right now. I have a friend trying to buy for $500k in Evanston. She gave up. Went to nearby suburbs like Skokie. Houses listed at $500k are selling for $625k, all cash.
Lol.
Also, did anyone else see the Crain’s article about a Chicago couple who had been trying to buy a vacation property in Southwest Michigan since 2023? Haven’t been able to find anything or outbid. Finally bought, though. $1.55 million.
Stock market is back to all-time highs. Baby Boomers have a LOT of money. Homes that are paid off and big stock portfolios. All of this is driving home prices.
You can get a 2/2 condo in a “newer” building in downtown Holland now for $825,000. Lol. It’s more expensive than downtown Chicago.
Gary, is this your daughter who was in the Bay Area? Did they leave San Francisco?
Obviously, no new crib today and I’m taking the 4th off.
It’s just so lackluster. I can’t believe it’s possible, but inventory is falling even more. And this week, few people listed anything new given the holiday and NASCAR shutting down downtown.
There’s only 178 properties available in Lakeview right now. And just 128 in Lincoln Park. Only 880 on the Near North Side. Very low. Inventory finally being absorbed there.
“is this your daughter who was in the Bay Area? Did they leave San Francisco?”
Yep. they had moved from SF to Berkeley in like 2020. They bailed on Berkely for multiple reasons. Primarily they needed to be closer to family and both sets of parents are on the east coast. Also, Berkeley is just a crazy town – too close to Oakland, high taxes, high housing costs and a bunch of nutjobs running the town. But the weather was phenomenal.
I was actually surprised at how nice Westchester is.
Thanks Gary. Berkeley isn’t for everyone, that’s true. I’m glad they have gone somewhere where family are.
Westchester has always been nice, hasn’t it? I mean, it’s like the North Shore of Chicago. Are there bidding wars there?
Sorry that there was no new post as there is even less on the market right now. Will we see less than 100 properties for sale in Lincoln Park soon? It’s TERRIBLE. I’m sorry for those looking to buy.
I don’t know what developers are waiting for. There are literally hundreds of people who would buy a condo right now even with these mortgage rates.
I’ll post tomorrow though. It might be a boring high rise, but I WILL find something to post.
“Are there bidding wars there?”
Definitely. 18 bids on the house they bought. $300K over asking price on a $1.25 MM house and that was not unusual. Mostly all cash buyers.
“Definitely. 18 bids on the house they bought. $300K over asking price on a $1.25 MM house and that was not unusual. Mostly all cash buyers.”
That’s rough. Younger buyers mostly not able to compete with the all cash buyers either. Baby Boomers and GenX have a lot of firepower, especially with stocks back to all-time highs.
Okay, I put up a new post. It’s a struggle out there. Very few new properties are coming on the market and others are under contract.
Westchester has always been nice. I spent my childhood there. Some parts are less nice – White Plains is not so great but as you move north it just gets more exclusive. I sold my parents home last year – total fixer upper – got multiple cash offers over ask..the occasional person who told us it was over-priced and low balled us (two consecutive weekends of open houses and we had more than 100 walk-throughs (list price for the 4-bed / 3ba home on nearly an acre was under $1MM which is unheard of for the area), and that yielded 15 offers, all but three were cash.) It was the type of house that you could put $500K of improvements into it and it would be worth what we sold it for plus the $500K. Buyers (a young couple with kids moving up from the city, paid cash that appeared to have been generated by frugal living and not by bank of mom and dad), got relocated by work and they just sold it after having poured money into it over the past year – there is still work to be done but they got back everything they put in and then some. Current owners could pour another couple hundred K into it and they too will be fine. I just noticed the “Refin estimate” is up $160K since they closed on it less than a month ago. Good for them.
“Current owners could pour another couple hundred K into it and they too will be fine. I just noticed the “Refin estimate” is up $160K since they closed on it less than a month ago. Good for them.”
Wow. Thanks for the story The Cat. Americans are so rich. Lots of stories of all cash offers in the Chicago area too. But not as common on $1.5 million+ homes. In Chicago, it’s on those less than $1 million.
There were a bunch of new properties which came on the market in the last 48 hours. It looks like a lot of sellers were waiting until after the July 4th weekend to list.
I’ll be covering some of those properties next week, if they stay on the market. But it does seem like things are slowing a bit, even with the low inventory. Buyers are really picky right now and are willing to wait for the right property.
It’s still boring. Some properties went under contract already. But I have some ideas including the new construction property I posted this morning.
Think about how difficult it is for the real estate agents right now. You are lucky if you’re going to get even a handful of sales. And that’s a top agent. How are they paying their bills right now?
I’m sorry, agents, real estate attorneys, appraisers, inspectors. Hang in.