Is the Chicago housing market slowing down?

The median home sale price in the Chicago Metropolitan Area was $290,000 in Sep 2021, up 5.5 percent from $275,000 in September 2020. Closed Sales were down -7.8\% year-over-year. The inventory of available homes decreased by 25.8 percent year-over-year, from 30,517 to 22,633.

Is Chicago in a housing bubble?

The report also highlights one way the housing market boom has exacerbated Chicago’s shortage of affordable homes. The city was already grappling with a shortage of nearly 120,000 affordable units before prices skyrocketed in 2021, according to a 2020 city task force.

Is it smart to buy in Chicago?

In Chicago in 2020, all signs point to yes. First, it’s affordable: The median sale price is $288,000, far less than major cities on the coasts. Interest rates also remain at historic lows, meaning that money is inexpensive to borrow. And finally, homebuying in Chicago is predicted to get more competitive.

Will rent prices go down in Chicago?

At $1,661 as of March 2021, the median rent price in Chicago is relatively comparable with the current national average of $1,721. Yet the median rent has actually dropped in the last year, down almost 3\% on a year-over-year basis, most likely due in part to an increased number of rental vacancies.

Is buying a house in Chicago a good investment?

Overall, Chicago is still a very attractive place to invest in real estate over other major metro areas, as prices have started to flatten and buyers are continuing to extract greater leverage in purchase negotiations.

Why are homes cheaper in Chicago?

Rents are high in most big cities, but even higher home prices make rents more affordable than mortgages. In Chicago, however, an overabundance of supply has pushed home prices down—even below the national average. Chicago’s median home price is significantly lower than in other major cities.