Are Chicago real estate prices dropping?

Chicago Real Estate Market Sees Significant Growth in December 2024

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Contrary to concerns about declining property values, the Chicago real estate market continued its upward trend in December 2024. The median home sale price increased to $366,590, reflecting a 7.8% growth from the previous year. Additionally, the median price per square foot rose to $262, demonstrating strong demand for Chicago homes.

Market Competitiveness

The housing market remains competitive, with homes selling in an average of 59 days, compared to 57 days in December 2023. In September 2024, the median home price was $360,000, marking a 7.5% year-over-year increase. Buyers looking to enter the market should stay prepared, while sellers can take advantage of favorable conditions to sell a home in Chicago at top value.

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Statewide Market Growth

The growth extends beyond the city limits. In December 2024, home sales in Illinois rose 5.9% year-over-year, with 9,905 properties sold statewide. This increase reflects overall confidence in the housing market, making it an opportune time to buy a home in Chicago.

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Challenges in the Luxury Housing Segment

While the overall market is thriving, Chicago’s luxury real estate sector faces unique challenges. Notable sales, such as billionaire Ken Griffin’s penthouse, saw losses of 44%, signaling a downturn in the high-end market. Factors such as higher interest rates and concerns about downtown crime rates contributed to a 28% decline in sales of $4 million+ homes from Q3 2021 to Q3 2024.

Despite these setbacks, the broader Chicago real estate market remains robust, offering valuable opportunities for both homebuyers and sellers.

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Looking Ahead

With steady growth in home prices, increased statewide sales, and a competitive market, 2025 presents promising opportunities for both buyers and sellers. Whether you're planning to buy a home in Chicago or list your property for sale, staying informed about market trends is crucial.

For expert guidance, trust Heart of Chicago Homes to help you navigate the evolving real estate landscape and secure the best deal.

Sources:

Rocket Homes: Chicago Housing Market Report December 2024 Redfin: Chicago, IL Housing Market
Illinois REALTORS®: December Home Sales Report The Wall Street Journal: Chicago Luxury Real Estate Trends

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