Home prices in Chicago have continued to slide, continuing a trend that began last year after the post-pandemic housing boom peaked.
May marked the seventh straight month of home price declines in the Windy City, the longest stretch of price declines since the 13-month stretch between 2010 and 2011, and could hamper the city’s economy more broadly, Crain’s said. report.
Citing data from Illinois realtors, the outlet reported that the median price of a home sold in Chicago fell 4.4% year over year in May to $335,000. The drop was higher than the national figure of 3.1%, according to the National Association of Realtors.
Home prices in the city have fallen year-over-year in eight of the past 10 months, with October being the only month to see an increase. Declining population, perceptions of crime levels and the remote working movement shifting demand away from cities are among the reasons for the decline.
While some parts of the city may be more resilient than others, research suggests the trend is happening citywide. Neighborhoods such as Albany Park, Avondale, Hyde North Centre, Rogers Park and West Town saw median home sales from January to May The price will be lower than that in 2022. Subway prices have also fallen in Chicago’s entire nine counties.
Sales activity also slowed significantly. In Chicago, 2,397 homes sold last month, significantly less than any other May since 2012 (excluding the outlier year 2020). 8,952 homes sold in the metro area last month, also the lowest number since May 2012, except for May 2020. According to the media report.
Things seem bleak for the Windy City’s real estate market, but certain steps are being taken to keep the market stable until the market recovers more broadly.
One solution is builder acquisitions. Developers have been using this tactic to keep prices as high as possible, as it allows builders to pay some of the cost of a home up front to lower interest rates, essentially discounting the property without lowering the official asking price.
— Quinn Donoghue
