Realtors in Northern Illinois still bullish about 2023 housing market

January 2023 brought a decrease in the number of single-family homes sold, compared to this same time last year, and lower median sale prices, yet Realtors remain bullish about the market and what this year will bring.

This January, 1,456 single-family homes sold, compared to 2,316 this same time last year, a 37.1% dip. The number of detached homes under contract also tumbled 19.7% from 2,853 last year to 2,292 this year. Some good news for buyers, median sale prices declined 0.8% from $309,000 to $306,495 this year.

"Buyers are not showing signs of slowing down. There are a lot of people preparing for the spring market," said Debbie Pawlowicz, president for the Mainstreet Board of Directors. "The biggest challenge continues to be low inventory."

When it comes to attached homes, the number of houses sold decreased by 40.6% from 1,180 in January 2022 to 701 in January 2023. Among these homes, however, the median sale price increased 7.2% from $194,900 last year to $209,000 this year.

"The January housing data is yet another indicator that we are moving toward a balanced market that is more reflective of what we have seen historically, pre-pandemic. This is also a tipping point for sellers, if you are looking to put your home on the market, now is the time to call a Mainstreet REALTOR®️ who can work with you to get it listed," said Mainstreet CEO, John Gormley.

When asked why inventory continues to be an issue, Realtors pointed to supply chain issues and regulatory requirements, as well as rising interest rates.

"There are not a lot of housing choices right now, so those that don't have to move are holding off. There are also homeowners who don't want to trade their 3% or below interest rates with the higher interest rates today," said Pawlowicz. "It's important to work with a Mainstreet REALTOR®️ who can help navigate these challenges."

In Chicagoland, following were several of the suburbs that saw notable decreases in median sale price: Antioch (7.3% decrease in median sale price); Brookfield (23.9%); Burbank (16.7%); Darien (20.6%); Des Plaines (8.0%); Elmhurst (22.4%); Homewood (18.9%); Keeneyville - Roselle (13.6%); Lisle (24.7%); Lombard (6.5%); Palos Heights (19.6%); Riverside (27.3%); Schaumburg (19.5%); Villa Park (8.6); Wauconda (31.5%); Zion (24.9%).