The state of the Chicago residential marketplace is a matter of perspective, with statistics showing somewhat of a mixed bag and not necessarily reflecting what may be ahead with rate decreases on the horizon.
| Pioneer Realty Group | Overall | Overall | 2 BR | 2 BR | 3 BR | 3 BR |
| SEPT 1 2024 | ### | % Chg | ### | % Chg | ### | % Chg |
| Average Asking Price | $531,000 | -1.28 | $425,000 | 2.3 | $533,000 | -4.7 |
| New Properties | 3,740 | -12.44 | 899 | -2.1 | 1,080 | -9.6 |
| Price Changes | 1,420 | 18.41 | 328 | 22.4 | 367 | 2.5 |
| Avg. Days on Market | 71.28 | 8 | 59.5 | 12.3 | 70.5 | 11.9 |
| Active Properties | 9,550 | -0.63 | 2,190 | -4.2 | 2,620 | 5.4 |
The average asking price across the city for all for sale properties was $531,000, a 1.28% decline. Despite the overall decline, the average asking price for two-bedroom units actually increased more than 2% to $425,000 while the price fell almost 5% for three-bedroom units, to $533,000.
The number of listings that saw price changes in August increased by 18.4% and ranged from a 2.5 increase for three-bedroom units to 22.4% for two-bedroom units. Not surprisingly, as a direct correlation to the number of price changes, the average days on the market also increased. Throughout Chicago, a listing today will average 71.28 days on the market.
The vibe in the market is driven in part by the uncertainty that has existed because of the interest rate environment and looms large in the wake of the presidential election. There has been some downward movement in 30 years rates, in anticipation that at some point in September the Fed will lower rates.
The most recent inflation data, with a rate that is now below 3%, is a welcome sign. The Fed has followed the lead and now seems destined to lower interest rates three times by the end of the year. While that’s no guarantee, the real question seems to be whether the decreases will be 25 basis points (bps) or even a little higher.
“The expectation of declining interest rates is energizing to buyers and sellers alike,” said Helen Bailey, a Co-Founder and Managing Broker of Pioneer Realty Group. “It gives us renewed excitement for the balance of 2024 and into 2025.”
Bailey doesn’t necessarily expect that a rate decrease will open the floodgates of activity, rather it will give buyers and sellers more confidence to begin the process—either preparing their home for sale or getting their financial house in order to make a purchase.
“People have been holding back because of rate and election year uncertainty,” she said. “However, with interest rates already on the decline and more expected through year-end, we expect that the landscape will be financially more conducive for sellers to list their homes and buyers to be in a position to make a purchase.”