2026 Chicago Market Report: Prices UP, Rates DOWN, Inventory ZERO!

What really happened in the Chicago real estate market in 2025 — and what does it mean for buyers, sellers, and homeowners heading into 2026?In this annual Chicago Home Partner Market Report, we break down the data, revisit last year’s predictions, and give you a clear, honest look at where the Chicago housing market stands today. From rising home prices and shrinking inventory to interest rates, buyer demand, and consumer confidence, this is the most comprehensive Chicago real estate update of the year. 📊 What We Cover in This 2025 Chicago Real Estate Report✔️ Chicago Home Prices– Overall median home prices rose ~6.5% in 2025– Single-family home prices jumped nearly 13%– Why location, property type, and scarcity continue to drive appreciation✔️ Housing Inventory in Chicago– Total inventory declined 13% year-over-year– Single-family home inventory dropped more than 20%– Condo inventory also tightened, adding pressure across all price points✔️ Interest Rates & Mortgage Trends– Average mortgage rates fell from 6.72% (2024) to ~6.3% (2025)– Why rates didn’t drop further — and why waiting can actually cost buyers more– What to expect for rates in 2026✔️ Home Sales & Buyer Demand– Home sales increased slightly despite fewer homes available– What strong buyer demand signals about market strength– Why Chicago continues to outperform many national markets✔️ Days on Market & Competition– Homes are selling faster, with average days on market declining– Why competitive markets don’t always mean “instant” sales– How pricing strategy matters more than ever✔️ Consumer Confidence & the Bigger Picture– Why consumer confidence declined sharply in 2025– How inflation, cost of living, and uncertainty affect housing decisions– What buyers and sellers should focus on despite the noise🧭 Looking Ahead: Chicago Real Estate Forecast for 2026We also share forward-looking insights on:Where Chicago home prices are headedWhether inventory is likely to improve (or not)How interest rates could move throughout 2026What today’s buyers and sellers should be preparing for now📍 About This ReportThis data focuses on Chicago’s North Side neighborhoods, from the river north to Rogers Park and west to areas like the West Loop, Logan Square, Humboldt Park, Jefferson Park, and beyond. It includes all residential property types — single-family homes, condos, and townhomes — with important distinctions explained throughout.