Why Chicagoland Home Prices Are Still Rising in August 2025—And What It Means For Buyers & Sellers
- The Biggest News Jason Rosenberg
- Aug 3
- 3 min read
Thinking about buying or selling a home in Chicago or the suburbs?You’re not alone! The Chicagoland real estate market in August 2025 is still buzzing—and for many, the biggest question is: Are home prices still rising, or are things finally slowing down?
Let’s dive into the latest data, what’s driving this market, and how it impacts YOU—whether you’re a buyer, seller, or investor.
📈 Chicago Real Estate Market Snapshot: August 2025
Median Sale Price, Chicago Metro: $402,000 (up 4.4% from last year)
Home Price Growth (Chicago Metro, YoY): +6.3% (as of May 2025)
Illinois Statewide Home Price Growth: +7% year-over-year
Average Days on Market: 49 (down from 54 last summer)
Suburbs vs. City: Single-family home prices in the city are up 9.4%, while condos have risen 4.4%. The suburbs continue to show strong, but slightly slower, growth.
Inventory: Finally starting to rise, but still tight compared to pre-2020 levels.
Mortgage Rates: Hovering near 6.75% (with predictions to ease to 6.0–6.5% by year-end)
🏡 Why Are Chicagoland Home Prices Still Going Up?
While some U.S. markets (especially in the South and West) have seen home prices flatten or even dip, Chicagoland remains strong. Here’s why:
Persistent Demand: Even with higher mortgage rates, demand from buyers—especially first-timers and families relocating for schools—remains solid.
Limited Inventory: Although we’re seeing more homes come onto the market, there’s still not enough to meet demand, keeping upward pressure on prices.
Stable Local Economy: Chicago’s job market has rebounded, with steady employment in tech, healthcare, and service industries.
Comparative Affordability: Compared to coastal cities, Chicago remains relatively affordable—drawing new buyers from out of state and even overseas.
Investor Interest: Rental demand is strong, especially as students and young professionals flock back to the city for work and school.
🌆 How Do Chicago’s Trends Compare Nationally?
Chicago vs. National Market:While hot markets like Miami, Austin, and Phoenix are cooling off, Chicago continues to post moderate price gains (3–6%). The Chicago metro ranks higher than many Sunbelt cities for price stability this summer.
Chicagoland Suburbs:Suburban markets remain competitive, but price increases are a bit less dramatic than inside city limits. Areas like Naperville, Schaumburg, and Oak Park continue to attract new buyers with good schools and amenities.
💡 What Does This Mean for Buyers and Sellers?
For Buyers:
Be prepared for continued competition, especially for well-priced, move-in-ready homes.
More inventory means more options, so don’t rush—but act decisively when you find “the one.”
Lock in rates if you’re ready: while rates are high, home prices are likely to keep rising (at least modestly) through year-end.
For Sellers:
It’s still a seller’s market in most Chicagoland neighborhoods—but proper pricing is crucial.
Homes that are staged and priced right are selling fast (median days on market is just 49).
If you’re thinking about selling, listing before the fall rush could maximize your exposure.
🔮 Chicagoland Real Estate Forecast for Fall 2025
Price Growth Slowing, Not Stopping: Experts predict a continued, modest price increase (1–2% through early fall) before seasonal slowdowns.
Inventory Will Continue to Improve: Buyers may see even more options by October.
Interest Rates May Drop Slightly: Some forecasters see rates dipping into the low 6% range, which could bring more buyers back to the table.
Ready to Buy or Sell? I’m Jason Rosenberg—Chicagoland’s trusted real estate advisor for 23+ years. If you’re thinking of making a move this year, let’s talk strategy! Call or text me at 312-882-9797, or visit jasonrosenbergrealestate.com for the latest listings and expert advice.
Sources: Heartland Realtor Organization, Redfin, Chicago Agent Magazine, Axios, StephanieTurnerChicago.com (August 2025)
