Illinois’ housing market posted steady October gains, with sales up in both the Chicago market and across the state. Buyers, undeterred by inventory and affordability issues, acted quickly, driving prices higher in major markets.
According to the latest report from Illinois REALTORS®, the Chicago-area market experienced a 2% year-over-year increase in closed sales, rising from 7,542 transactions in October 2023 to 7,690 this year. The nine-county region also experienced a significant increase in pricing, with the median sales price rising 8.5% to $369,000, up from $340,000 the previous year.
Within the city of Chicago, the pattern was similar. Total closings increased by 2.2%, rising from 1,743 to 1,782 sales. Prices moved at an even faster pace, with the citywide median rising 7.2% to $370,000. The continued upward trajectory in prices reflects strong demand in a market where available homes are becoming increasingly scarce.
Statewide trends mirrored the Chicago region’s performance. Illinois posted a 2.6% annual increase in home sales, rising from 11,370 transactions last October to 11,665 this year. The statewide median price climbed 5.6%, reaching $301,000 compared with $285,000 in October 2024. The gains suggest that, despite broader economic uncertainties and fluctuating mortgage rates, buyer interest remains resilient as the fall market progresses.
Inventory Tightens Across Illinois and Chicago
One of the most notable trends in October was the tightening supply of available homes. Housing inventory fell sharply in the Chicago metro area, where the number of homes for sale dropped 6.7% year over year, sliding from 15,951 active listings to 14,879.
The city of Chicago experienced an even steeper contraction. Active listings declined more than 22%, dropping from 5,438 homes on the market to just 4,233. This significant reduction is pushing buyers into more competitive situations, contributing to the rapid increases in median prices.
Statewide inventory also ticked down, albeit at a slower pace. Illinois ended October with 23,373 homes listed for sale, down 3.4% from the 24,101 available during the same period last year. While modest compared with Chicago’s decline, the reduction continues to signal a statewide trend of tightening supply, complicating the path for buyers who are already facing affordability challenges.
Jeff Kolbus, president of Illinois REALTORS® and owner of RE/MAX Traders Unlimited in Peoria, said the October data underscores the stability of the fall housing season, even amid limited inventory.
“Illinois home sales and prices moved higher in October, signalling steady fall momentum in the housing market,” Kolbus said. “Even with tighter inventory, buyers are acting quickly when the right home is for sale.”
Forecast Calls for Slight Slowdown in Sales but Continued Price Strength
Looking ahead, DePaul University’s Institute for Housing Studies expects a modest cooling in home sales over the next several months. The group projects that Illinois sales will decline 1.6% on an annual basis between October and January as seasonal patterns take hold and affordability challenges remain a factor.
However, prices are expected to remain firm. According to Geoff Smith, the institute’s executive director, median prices will follow their typical late-year softening but should still finish January nearly 8% higher than a year earlier.
“While home prices are expected to follow typical seasonal patterns and soften slightly through the end of the year, they are projected to remain strong overall,” Smith said. “Tight inventories, rising prices, and ongoing affordability challenges continue to pose headwinds for Illinois homebuyers.”
The prediction aligns with broader national trends, where low housing supply and steady demand have continued to support price growth even as elevated mortgage rates weigh on purchasing power.
Mortgage Rates Edge Down Slightly but Affordability Still Tight
Mortgage rates remain a central concern for both buyers and sellers, but October offered a small measure of relief. Based on data from Freddie Mac, the average commitment rate for a 30-year fixed mortgage dipped to 6.25%, slightly lower than the 6.35% average recorded in September and the 6.43% rate seen in October 2024.
While the decline is notable, rates remain significantly higher than the historically low levels seen earlier in the decade, continuing to impact monthly payments and overall affordability. For many shoppers, the combination of elevated rates and reduced inventory means tougher competition and an ongoing search for value in a market where prices continue to rise.
Despite these challenges, buyer enthusiasm appears to be holding firm. According to Chicago Association of REALTORS® President Lutalo McGee, the latest data reflects a market where demand remains strong, even as the number of available homes shrinks.
“October’s data shows that buyer demand remains strong as we move through the fall market,” McGee said. “People want to buy homes, but low inventory remains the biggest hurdle, continuing to push median prices upward.”
A Market Defined by Limited Supply and Active Buyers
The Illinois housing market balances limited supply with resilient buyer demand. Sales and price gains reflect an active market shaped by competition for available homes.
As the state prepares to enter the winter market, traditionally a slower season, analysts say the trajectory will depend heavily on how both inventory levels and mortgage rates evolve. For now, however, Illinois’ housing sector remains firmly in motion, driven by buyers who are ready to act quickly in a challenging but active marketplace.
