December 2024: Chicago Market Update

The Chicago real estate market in December 2024 highlights a resurgence of confidence among buyers and sellers, driven by declining mortgage rates and increasing demand. While challenges like inventory shortages persist, the market has demonstrated resilience, setting the stage for continued growth into 2025. Here's an overview of the latest trends and developments.

Median Prices Climb as Demand Grows

The median home price in the Chicago metro area is projected to reach $324,200 by the end of December 2024, reflecting a remarkable 12% increase from the same time last year. This rise can be attributed to heightened buyer activity, which has persisted despite tight inventory levels. While limited supply remains a hurdle, it has also intensified competition, prompting strategic moves by buyers such as waiving contingencies or increasing earnest money deposits.

Luxury Real Estate: A Bright Spot

Chicago’s luxury real estate market continues to gain traction, particularly among high-end single-family homes. These properties have experienced notable price growth, signaling strong demand.

In contrast, the luxury condo market is recovering more gradually but shows signs of improvement. Condos priced over $1 million, for instance, are now trending upward after experiencing a period of stagnation. This recovery reflects growing confidence in the broader high-end housing sector.

Emerging Neighborhoods in Demand

Neighborhoods like Hermosa and Avondale have become hot spots in 2024, offering relatively affordable options compared to established areas like Lincoln Park. These neighborhoods are attracting young buyers with their mix of affordability, proximity to transportation, and access to amenities.

• Avondale: Homes sold at a rapid pace, with an average market time of just 19 days.
• Hermosa: Rising interest is driving up home values while maintaining a competitive edge in pricing.

November 2024 also marked significant recovery signs across Chicago’s real estate landscape:

• Increased Buyer Confidence: As mortgage rates began to stabilize, buyers showed renewed enthusiasm, signaling a stronger start for 2025.
• Luxury Market Growth: High-end properties, especially single-family homes priced over $1 million, were in demand, while luxury condos began a steady rebound.
• Inventory Shortages: Limited housing options created a competitive environment across all price points.
• Northwest Neighborhood Popularity: Affordable yet vibrant areas like Avondale and Hermosa stood out as top choices for younger buyers.

Spotlight on Prime Neighborhoods: Lincoln Park and Gold Coast

Lincoln Park

• Demand: A mix of single-family homes, upscale condos, and townhouses continues to attract young professionals and families.
• Pricing: Modest growth reflects the area’s enduring appeal and limited inventory.

Gold Coast

• Market Activity: Interest in historic homes and luxury condos with lake views remains strong.
• Rental Trends: High-end rentals are thriving, particularly among professionals and international residents.

Looking Ahead to 2025

The Chicago real estate market is poised for further growth as interest rates stabilize and buyer confidence strengthens. With continued demand for both luxury properties and emerging neighborhoods, 2025 could usher in even greater opportunities for buyers, sellers, and investors.

For tailored insights into specific neighborhoods or property types, feel free to reach out—I am here to help you navigate Chicago’s dynamic market!

Jenny Wright
Wright at Home Chicago