Housing prices in suburban Chicago have surged recently due to low inventory and high demand. Nine towns in the region set new records for median home prices, posing a challenge for prospective buyers.
According to Redfin, St. Charles had a median price of $415,000 in April, a 6.4% increase from the previous year and the town's highest monthly price on record. Palatine had a median home price of $327,500, while Elgin had a median of $310,000 per home.
Even though there were a lot of homes available for sale in Elgin, there were only enough to meet the demand for 0.8 months. The housing market has been stable when there is a supply of homes that can meet the demand from buyers for about four to six months.
The recent dip in the housing market can be attributed in part to homeowners choosing not to sell due to low-interest rates, as well as rising inflation. With fewer homeowners looking to sell, buyers have fewer options.
Homes sold through off-market and pre-market listings contribute to the dip as well. These listings go around the open market and can’t be added to inventory calculations. This private sales channel obscures real estate data and challenges prospective buyers.
As inflation continues to mount, buyers are being hit the hardest. Understanding these dynamics is crucial to navigating the Chicagoland real estate market.
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