Despite dip in December 2022, annual median price of Illinois homes rose as economy seesawed and inventory tightened
Even though the monthly median price of Illinois homes was lower in December 2022 than it was in December 2021, the annual median price remained higher in 2022 than the previous year, according to data from Illinois REALTORS®.
In December 2022, statewide home sales (including single-family homes and condominiums) of 9,581 homes sold was 36.4 percent lower than 15,070 sold in December 2021. The monthly median price of $238,000 in December 2022 was 2.1 percent less than $243,000 the year before.
Annual closed sales of 160,844 in 2022 were 17 percent lower than 193,774 homes sold in 2021. The annual median price of $260,000 in 2022 was 4.0 percent greater than the median price of $250,000 in 2021. The median is a typical market price where half the homes sold for more and half sold for less.
“December’s results seem to indicate that we are moving to a more balanced market where there could be a win-win for sellers and prospective homebuyers,” said Michael Gobber, Illinois REALTORS® 2023 President and designated managing broker-partner, Century 21 Affiliated in Westchester. “But it is way too soon to predict the future because of the fluctuating economy and interest rates. We, REALTORS®, stand ready to provide our expertise as consumers try to navigate the homebuying and selling process during these times.”
In December 2022, homes sold on average of 34 days, up from 33 days a year ago. Available housing inventory in December 2022 totaled 20,671 homes for sale, a 9.7 percent decline from December 2021 when 22,896 homes were on the market. The time it took to sell a home in 2022 averaged 28 days, a 15.2 percent reduction from 33 days in 2021.
In the nine-county Chicago Metro Area, December 2022 home sales (single-family and condominiums) totaled 6,354 homes sold, down 39.5 percent from December 2021 sales of 10,494 homes. Annual 2022 home sales totaled 111,895, down 19.0 percent from 138,107 homes sold in the area during 2021.
“Although the housing market in Illinois has slowed since its peak in June, the decline is largely due to the usual seasonality in house prices and sales,” said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate (SHDRE) at the University of Illinois at Chicago College of Business Administration. “However, the median home price and the number of sales are currently lower than at this time last year. The number of foreclosures has declined over the last year and is not high by historical standards. Although consumer sentiment has become more positive recently, there still is significant uncertainty about the outlook for the housing market. Our forecasts indicate that house prices and the number of sales will increase as the housing market picks up during spring.”
The city of Chicago saw a 41.2 percent year-over-year home sales decrease in December 2022 with 1,425 sales, down from 2,422 in December 2021. Annual home sales totaled 28,265, a 15.0 percent decrease compared to 33,246 in 2021.
The median price of a home in the city of Chicago in December 2022 was $288,000, down 8.1 percent compared to December 2021 when it was $313,500. The annual 2022 median price reached $335,000, the same as in 2021.
“In December, closed sales, inventory and median sales price decreased, likely because of a few factors: seasonality and inflation, combined with the hope that mortgage rates will taper off soon,” said Sarah Ware, president of the Chicago Association of REALTORS® and principal and designated managing broker for Ware Realty Group in Chicago. “Buyers and sellers should approach their home pricing and offer strategies with this in mind.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 22 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Jan. 7, 2023, for the period Dec. 1 through Dec. 31, 2022. The Chicago Metro Area, as defined by the U.S. Census Bureau includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Based on the Freddie Mac data, the monthly average commitment rate for a 30-year, fixed-rate mortgage was 6.36 percent in December 2022, down from the previous month of 6.81 percent. The December 2021 average was 3.10 percent.
Find Illinois housing stats, data and the Stuart Handler Department of Real Estate (SHDRE) at the University of Illinois at Chicago College of Business Administration’s 2023 forecast at www.illinoisrealtors.org/marketstats.
Illinois REALTORS® is a voluntary trade association whose more than 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.