Chicago Real Estate Market Update – January 2025

The Chicago real estate market is poised for a promising year in 2025. Despite economic shifts and fluctuating mortgage rates, Chicago remains an attractive location for both buyers and sellers. Whether you're looking to sell a home in Chicago or purchase your dream property, staying informed about market trends is crucial. Here’s what to expect in the coming months.

1. Home Prices Show Steady Growth

Source: Google Image Search

The median home price in Chicago real estate has risen by 2% over the past year, with forecasts predicting an additional 3% increase in 2025. This is encouraging news for sellers looking to maximize their home value.

Find out how to get the best price when selling your home in Chicago

2. Housing Inventory on the Rise
Source: Google Image Search

More homeowners are expected to list their properties due to rising home values, creating more opportunities for buyers. Popular neighborhoods like Lincoln Park, Lakeview, and Wicker Park are expected to see an influx of available homes, offering greater choices for those looking to buy a home in Chicago.

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3. Mortgage Rates Stabilizing
Source: Google Image Search

After months of volatility, mortgage rates are expected to stabilize around 6% in 2025. This presents a more predictable market for buyers who may have been hesitant due to fluctuating rates.

4. Increased Interest in Suburban Living
Source: Stock Images

The shift toward remote work has encouraged many Chicagoans to consider suburban homes for more space and affordability. Areas such as Naperville, Oak Brook, and Schaumburg have seen an uptick in demand, making them excellent choices for buyers looking outside the city.

Is suburban living right for you? Learn more.

5. Sustainability and Green Homes in Demand
Source: Stock Images

More buyers are prioritizing eco-friendly features like solar panels, energy-efficient appliances, and sustainable materials. If you're selling, investing in these upgrades can make your home more attractive to buyers.

Conclusion

The Chicago real estate market is set to offer exciting opportunities for buyers and sellers alike. With home prices steadily rising, stable mortgage rates, and a growing housing inventory, 2025 is shaping up to be a great year to buy a home in Chicago or sell a home in Chicago.

Sources:

National Association of Realtors | Chicago Tribune | Crain's Chicago Business | Freddie Mac | Zillow

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