Q1 2024 Chicagoland real estate market overview

It is early April, which means we are at the very heart of the spring real estate market in Chicago. April also means we get a chance to reflect on the market throughout Q1 of this year. So far, the market this year has been heavily influenced by two factors: interest rates and inventory. Sellers are hesitant to list because they are locked in at a lower rate than today’s, so that when they purchase their next home the higher rates are a mental hurdle. As a result, we see the low inventory we are experiencing today – it’s a domino effect/self-perpetuating cycle! 

What we at Busby Group really want Chicagoland sellers to know is that you can truly get a great price for your home right now due to our lack of inventory and pent up demand – take advantage of this current marketplace scenario! There are many, many ways to sell right now and either not buy immediately, rent, buy down an interest rate – all captured in this blog post. 

The very bright spot of happy news is that properties in Chicago continue to appreciate. Across all neighborhoods prices are up, which is good news for all Chicagoans. 

Inventory

As in the entire country, inventory in Chicago is at historic lows across the market in both the city and suburbs. Inventory in March 2024 is actually even lower than it was this time last year. We do anticipate the spring market to continue later than usual this year due to the early rate volatility, and believe that sellers who need to sell in 2024 will begin entering the market in April and May. 

For buyers, low inventory means making sure that you uncover every stone whether that be on or off-market opportunities. Inventory this low typically indicates a sellers’ market, and generally that is what we see across Chicago, but demand is currently very neighborhood-driven. For example, average market time for condos in Lincoln Park (47 days) is significantly lower than the market at large (67 days). 

Market Time

Lincoln Park single-family home market time is higher than condos at 79 days, primarily driven by the higher price tag – single family home buyers are that much more sensitive to interest rate volatility. In the suburbs though, market time across the board is lower than the city, continuing the trend of the past few years of people moving from the city to the suburbs. 

Average Sales Price

Average sales prices for condos and single-family homes across Chicagoland have been in relative lockstep over the past three years, up approximately 20%. With inventory so low the past several years, coupled with the fluctuations in rates, this amount of appreciation in such a short time is striking – and also promising! Investing in Chicagoland real estate continues to be a strong option.