Falling rates and a calmer market signal buyers to take action this fall
As the summer market comes to a close in the Chicago area, interest rates are dropping and homes are spending more time on the market, indicating a favorable environment for buyers.
Detached home sales in the Chicago suburbs dipped slightly in August, with 2,731 properties sold compared to 2,780 in August 2024. The median sales price rose 5.0% from $400,000 to $420,000. These homes spent an average of 37 days on the market, up a full week from last August’s 30 days.
While it is moving slower than last year, this year’s August market is far faster moving in the Chicago area than elsewhere in the country; the national average is currently 63 days on the market.
The attached home market followed a similar pattern. Sales fell modestly to 1,317 homes from 1,396 in August 2024, while time on market increased from 25 to 33 days. The median price for attached homes climbed 5.7% from $265,000 to $280,000.
At the same time, mortgage rates began to fall from their peak earlier this year, hitting as low as 6.43% by late August. Rates are continuing to decline into September.
“August often brings a natural slowdown in the market as families shift their focus to back-to-school,” said Kinga Korpacz, the newly installed president of Mainstreet Realtors. “Once school is underway, many buyers return to their search with fresh energy. That seasonal slowdown creates an opening: homes are sitting longer, competition eases and buyers have more room to negotiate, especially as interest rates trend downward.”
Mainstreet leaders say interest rates could continue to have an impact as we transition into the fall market.
“If mortgage rates continue to ease into the fourth quarter, that can unlock new inventory and improve affordability,” said John Gormley, CEO of Mainstreet Realtors. “Now is the moment for buyers and sellers to prepare. Buyers should line up financing and work with a Mainstreet Realtor to identify target neighborhoods. Sellers should declutter, make repairs and price strategically so they’re ready to move the day conditions align.”
Korpacz and Gormley emphasized that in a slower market, buyers are more discerning, often bypassing homes that need work while competing for updated, move-in-ready properties. This gives sellers an incentive to invest in staging and repairs before listing. It also gives buyers more leverage on properties that linger, while making it easier for them to do their due diligence.
“In a market like the one we’re in right now, you should absolutely get an inspection, even if you want to buy a property as-is,” said Korpacz. “It will allow you to know what you’re getting into, ensure you understand the cost of necessary repairs and have a true sense of the value of your investment. A Mainstreet Realtor knows our responsibility doesn’t end at the closing table, and we’ll help you navigate these aspects of your transaction based on our knowledge of the current market conditions.”
Several suburban communities saw especially significant increases in average market time for detached homes in August 2025 compared to the same period in 2024, making them good spots for buyers to take their time striking advantageous deals.
Notable increases included: Vernon Hills (up 908.3%), Summit (716.7%), Chicago Heights (488.9%), Lansing (444.4%), Indian Head Park (633.3%), Burnham (363.6%), Mt. Prospect (331.3%), Berkeley (416.7%), Chicago Ridge (414.3%), South Chicago Heights (209.5%), Wheeling (200.0%) and Wadsworth—Old Mill Creek (154.2%).