3 Takeaways: Chicago’s Home Growth Doubles The Nation
Over the last 25 years, Chicago’s home prices doubled, fueled by super-low rates and a COVID housing boom. However, a recent Case-Shiller report shows Chicago ranked near the bottom of home growth of major cities, as cities such as Los Angeles and Miami had home values hitting 400% over 25 years. This January 2025 index shows the market’s level as measured from a January 2000 baseline of 100.
THINGS ARE CHANGING BIG FOR CHICAGO
That looks to be changing in a major way now, as for months now (including February), home prices in Chicago grew at more than DOUBLE the nation’s prices.
1. City home appreciation doubled the rest of the USA
The median price of homes sold in the city of Chicago in February was $360,000, up 9.1% from the same time in 2024. It was the fourth month in a row of prices rising by at least 9% from the same month the prior year.
In the nine-county metro area, the median price of homes sold in February was $344,000, up 7.5% from a year earlier.
The median price of homes sold across the country in February was $398,400, only an increase of 3.8% from a year earlier, according to NAR data.
2. Home Sales Way Down
The number of homes sold in February was down in the city of Chicago, the larger metro area and the U.S., held back by lack of home supply, anxiety over the election results, tariffs, inflation and low consumer confidence in the economy.
In Chicago, 1,306 homes sold in February, a decrease of 3.1% from the same time in 2024. In the metro area, 5,160 homes sold, a tiny decline of 0.1% or approximately flat with February 2024. Nationwide, home sales were down 1.2%.
A little ray of light. In both Chicago and the metro area, the sales volume was above the figures for February 2023, the worst of the post-boom bust as interest rates went up 2% or more overnight.
3. Record Numbers of Home Sale Cancellations Reflect Uncertainty
Chicago-area buyers put huge numbers of homes under contract in November, 28% more homes under contract as in November 2023.
Many buyers got cold feet. In January, 15.3% of Chicago-area purchase contracts were canceled. That’s more than the national cancel rate of 14.3% but less than the record of 19.8% in Atlanta. a larger share than the national rate of cancellation at 14.3%, but around the upper middle of the range for the nation’s 50 biggest metro areas. In Atlanta, 19.8% of contracts were canceled in January.