Illinois housing market: Everything you need to know
Whether you’re a longtime resident or you’re just moving to Illinois, you have some choices to make. Cubs or White Sox? Will you dare to put ketchup on your Chicago dog? But of course, there’s much more to the Prairie State than just the Windy City. Here’s what to know about the current real estate market in Illinois, no matter where in the state you’re looking.
Illinois housing market overview
Most housing markets peak in the summer months, and Illinois is no exception. After a low point in January, median sale prices here have been on an incline, according to Redfin data. Don’t let the increase fool you, though: Illinois homes are remarkably affordable, averaging far below national median prices.
However, as is the case throughout much of the country, the current inventory of for-sale homes in Illinois is low. There was only a two-month supply in July, per Redfin, which is well below the five or six months needed for a balanced market. While low prices are obviously great for buyers, low inventory typically indicates a seller’s market.
Illinois housing trends and stats
- The median home sale price in Illinois as of July 2023 was $287,900, according to Redfin — a 4.6 percent increase over July of last year.
- That’s considerably lower than July’s nationwide median home price, which per the National Association of Realtors was $406,700.
- The sale-to-list ratio is 100.2 percent, meaning homes are typically selling for just above their list price.
- Homes are taking a long time to sell, with a median of 43 days on the market. That’s a slight improvement over July 2022’s 45 days.
- CoreLogic’s ClosingCorp data shows that closing costs across Illinois average 2.1 percent of the home’s sale price. On a median-priced $287,900 home, that comes to about $6,046.
Should you buy or sell in the Illinois housing market?
With all of that in mind, you might be wondering if now is the time to dive into the market. Here are some factors for both buyers and sellers to consider.
If you’re a home seller
A lack of sale inventory means that listing your Illinois home now could make it a hot commodity among buyers. Plus, median home sale prices are up year-over-year, so you might be able to pull in a better price now than you would have in 2022. Work with a local agent to make sure you understand how much your home is worth, so you can price it right for today’s market. Illinois homes are selling for full asking price right now, according to Redfin, so it’s important to choose the right price from the start.
Keep in mind, though, that the state’s long days-on-market stat means your house will likely be on the market for more than a month before it sells. That’s something to consider if you’re on a tight moving timeline — or if you’re trying to buy another house at the same time.
If you’re a homebuyer
Low housing inventory means limited options for Illinois buyers right now. Fortunately, though, the state’s low home prices are good news for hopeful buyers, and can help you offset the cost of today’s high mortgage rates.
Getting preapproved for a mortgage is a smart first step to start your house hunt: Not only does it show sellers that you’re serious about buying, but it helps you set an accurate budget by letting you know exactly how much a lender might be willing to loan you. Bankrate’s home-affordability calculator can also help you figure out just how much house you can afford.
Illinois housing market predictions
The country’s housing market as a whole is slowing down after a pandemic run of high-intensity sales. Experts say there’s no danger of a housing crash, but after a summer peak it’s normal for things to cool off through the rest of the year. In addition, the high cost of borrowing will likely continue to keep many buyers out of the market for the near future — and to keep many would-be sellers, locked into low rates they’re hesitant to give up, staying put for now.
Find an Illinois real estate agent
If you do choose to jump into the Illinois housing market right now, whether you’re buying or selling, it’s smart to have an experienced local real estate agent by your side. Get recommendations from friends and family, look online and at local yard signs, and vet at least a few options to find the best one for you. An agent who knows your area well — and even better, your specific neighborhood — can help sellers bring in top dollar, and help buyers find a home that fits both their needs and their budget.
FAQs
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No, they’re rising. Redfin data shows that Illinois’ median home price in July 2023 was 4.6 percent higher than the year before, and May and June’s prices were higher year-over-year as well. However, compared to the national median price of $406,700, the state’s median of $287,900 is still very affordable despite being on the rise.
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An argument could be made both ways. Technically, the state’s low two-month supply of inventory makes it a seller’s market, because there is not enough supply to meet demand. On the other hand, Redfin data shows that the volume of homes sold is down more than 20 percent year-over-year, and homes are sitting on the market for a long 43 days before selling. Combined with low median prices, this gives buyers a bit more leverage.
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