C
hicago's real estate market experienced a slowdown in August, with a 7% drop in home sales compared to last year and a decrease in available inventory by 8.5%. The city's median home price rose 7% year-over-year, while the broader metro area saw a 4.4% increase. In contrast, the nine-county Chicago Metro Area reported a 7% jump in listings this August.

    The limited inventory in Chicago is attributed to sellers' cautious approach due to the competitive market conditions. However, other parts of the state, such as the North Shore, are experiencing a "gridlock" of low inventory due to high interest rates deterring homeowners from moving or downsizing. This trend may change with potential interest rate cuts.

    The Chicagoland area is characterized by diverse micro-markets, leading to varying trends in different submarkets. Some areas, like downtown Chicago, continue to struggle with excess inventory and soft demand, while others are experiencing a competitive market with rising prices.

    Statewide, listings increased this August but remain near historic lows, indicating a highly competitive market for homebuyers. Experts predict that the coming months will see slightly lower sales activity but higher prices, potentially boosted by declining mortgage interest rates and potential rate cuts from the Federal Reserve.