Illinois
Housing Market
The landscape of Illinois’s housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Illinois. Our report offers real-time insights to help you make informed decisions.
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MigrationIllinois Housing Market Overview
Home prices in Illinois show a 10.1% Y-o-Y growth as of January 2025. The constant growth in home prices indicates the strength of the housing market. Currently, the median home price in Illinois is $283,900. Additionally, the number of homes sold have increased by 6.9% Y-o-Y.
You can also check the market competitiveness through median days on the market. Houses in Illinois now spend 63 days on the market before going under contract. All these metrics collectively indicate changes in the Illinois housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Houses in Illinois now spend 63 days on the market before going under contract. All these metrics collectively indicate changes in the Illinois housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Seller: You will benefit from the Illinois house market's 10.1% surge. This percentage is reflected in the average home price in Illinois, which reached $283,900 in January 2025. Moreover, the 1.2% drop in housing inventory drives quick sales.
- If You're a Buyer: You must compete against a 6.9% increase in sales. The surging prices will stretch many buyers' budgets further. The Illinois real estate market significantly outpaces the national price growth by 4.1%. The state's inventory has shrunk, while the national supply has grown to 11.7%. Patient buyers can expect better opportunities when interest rates drop.
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Illinois
Illinois Housing Supply
The Illinois market shows signs of limited homes with the available inventory dropping by 1.2% from last year. The Illinois median home price jumped to $283,900 statewide. Currently, the state's housing supply stands at 31,919 homes. More buyers want homes than sellers listing properties. This supply crunch pushes home prices up across Illinois.
What Does It Mean for Home Buyers and Sellers?
If You're a Seller: You benefit from Illinois' strong price gains of 10.1% now. The current Illinois market conditions favor quick property sales statewide. If You're a Buyer: Limited inventory creates more competition amongst potential buyers. Available Illinois houses have dropped by 1.2% with fewer new listings as of January 2025. New listings too fell by 3.9% compared to last year. Multiple offers force buyers to make stronger purchase bids. Pre-approved buyers could win more bids in this competitive market.
What Does It Mean for Home Buyers and Sellers?
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Illinois
Illinois Housing Demand
The Illinois housing market reveals shifting patterns in January 2025. Above-list-price sales fell to 26.3% from last year's peak. The 98% sale-to-list ratio signals a market shift. Here, the market still favors sellers but shows buyer-friendly signs. Buyers gain modest negotiation power in this shifting market. Strategic pricing and patience will soon benefit both parties.
20.2% of Illinois homes are seeing price cuts. This shift creates new opportunities for buyers of houses in Illinois. The Illinois median home price still rises faster than national levels. Yet buyers stay confident, pushing sales up by 6.9% annually. These changes signal a gradual shift from a seller's to a buyer's market.
What Does It Mean for Home Buyers and Sellers?
If You're a Seller: The Illinois real estate market favors sellers but shows a possibility of a shift. For now, sellers control prices with a 10.1% rise in value. If You're a Buyer: The 20.2% of homes with price cuts show buyers’ increased leverage as bidding wars decrease across Illinois. The 6.9% sales increase proves steady demand for homes. Smart buyers can negotiate better deals in this market.
20.2% of Illinois homes are seeing price cuts. This shift creates new opportunities for buyers of houses in Illinois. The Illinois median home price still rises faster than national levels. Yet buyers stay confident, pushing sales up by 6.9% annually. These changes signal a gradual shift from a seller's to a buyer's market.
What Does It Mean for Home Buyers and Sellers?
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Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.
Is It a Buyer’s or Seller’s Market in Illinois
As of January 2025, Illinois real estate continues to favor sellers. The declining inventory of Illinois houses, down 1.2% Y-o-Y, creates a competitive environment with only a 3-month supply. Median home prices in Illinois demonstrate strong seller leverage, rising 10.1% to $283,900.
However, the market shows early signs of rebalancing. Although 26.3% of homes sold above the list price, it is down by 2.5% from last year. The rise in price reductions to 20.2% of listings suggests sellers have to be flexible.
Illinois Housing Market Insights
The Illinois real estate market remains highly competitive in 2025. The average home price in Illinois ($283,900) is well below the national median price of $427,388. However, Illinois houses saw prices rise sharply by 10.1%, outpacing the national growth of 4.1%. Early signs of market rebalancing have appeared with 26.3% of homes selling above list price. Price reductions now affect 20.2% of listings, showing increased seller flexibility.
Popular Illinois real estate markets like Springfield show a remarkable 17.5% price surge to $194,000. Homes in Springfield sell within 16 days of listing. Glen Ellyn properties command $550,000 but stay on the market for 65 days. On the other hand, Chicago houses reach $350,000 with 76 average market days. These regional differences offer varying opportunities for potential buyers across Illinois.
Popular Illinois real estate markets like Springfield show a remarkable 17.5% price surge to $194,000. Homes in Springfield sell within 16 days of listing. Glen Ellyn properties command $550,000 but stay on the market for 65 days. On the other hand, Chicago houses reach $350,000 with 76 average market days. These regional differences offer varying opportunities for potential buyers across Illinois.
Nationwide Migration Trends
Over 13,000 Illinois residents searched for homes outside the state during winter 2024-2025. The state's high tax burden, with the second-highest property taxes in the country, drives relocation decisions. Most homebuyers explore tax-friendly states like Florida, Texas, and Arizona. Changes in work and retirement plans account for 47.5% of these moves. Chicago ranks sixth nationally among the cities people relocate from the most.
The cost of living in Illinois offers a silver lining, with an index of 90.8, staying below the national average.
The cost of living in Illinois offers a silver lining, with an index of 90.8, staying below the national average.
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Frequently Asked Questions
What is the cost of living in Illinois?
The cost of living in Illinois sits at an index of 90.8. The state costs 9.2% less than the national average. The housing index of 82 reflects lower home prices. A median home costs $283,900 in Illinois today. You can also check the cheapest places to live in Illinois before you make a decision.
How is the housing market in Illinois?
The Illinois housing market shows strong growth in 2025. Home prices in Illinois rose 10.1% from last January. The median home price in Illinois has reached $283,900. Moreover, home sales grew by 6.9% over the past year. Buyers must compete for fewer available homes.
When will the housing market crash in Illinois?
An Illinois housing market crash appears unlikely in 2025. Home prices in Illinois continue to rise but sales numbers prove strong buyer demand exists. Fewer homes for sale in Illinois keep the market competitive. Economic indicators support market stability.
How have home prices changed in Illinois over the past years?
The median home price in Illinois reached $283,900 in January 2025. Home prices in Illinois rose by 10.1% Y-o-Y. However, each region shows different appreciation rates. Some locations demonstrate stronger price gains than other areas in the state.
Are home prices dropping in Illinois?
No, home prices in Illinois continue to rise. Prices increased 10.1% since last January. However, price cuts affect 20.2% of current listings. This means buyers can negotiate better deals on some properties despite the rise in the median price. You can use a home value estimator to know your property's fair market value.
What are the Illinois housing market predictions for 2025 and beyond?
The Illinois housing market should stay stable through 2025. Illinois real estate will grow at a slower pace. Higher mortgage rates will affect buyer demand but more inventory could enter the market soon. Buyers will find better opportunities.
Is now a good time to buy or sell a home in Illinois?
The Illinois housing market favors both buyers and sellers now. Houses in Illinois saw a 10.1% price increase. Low inventory creates strong demand. This makes the current market the best time to sell a house in Illinois. On the other hand, price cuts appear on 20.2% of listings. Buyers can find deals through negotiations.
How can I list my home for sale in Illinois?
You can list your home for sale with a Flat Fee MLS Illinois listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What's the average price for a house in Illinois?
The average home price in Illinois equals $283,900 today. However, each city shows different price ranges. Chicago homes sell for $360,000 on average, while Springfield offers homes for around $194,000.
Should I wait for some time before buying houses in Illinois?
Consider your financial situation before you buy a house in Illinois. More homes could enter the market soon and home prices in Illinois could rise further. Higher mortgage rates can also affect monthly payments. The right time depends on your needs.
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