Another Year Over: What 2024 Tells Us About the Year That Was (And What’s Coming Next)
A KlopasStratton blog by: Bridget Chambers, Life Coach, Writer
How do you measure a year? If you’re looking at Chicago real estate, that answer is a storied one. In other words, Chicago’s real estate market is wrapping up another transformative year and leaving sellers and buyers looking to track trends, patterns, and predictions. (Need help? Contact KlopasStratton today!) December is often a quieter month, but 2024 is closing with fascinating trends and a few surprises. From rising prices to resilient demand in some surprising corners of the city, Chicago’s neighborhoods are as diverse in their real estate stories as they are in their personalities.
Whether you’re hunting for your dream home, planning to sell, or just a real estate enthusiast, this data-packed recap of the last 11 months will give you insights into the current market (and predict what’s on the horizon for 2025).
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December’s Market at a Glance: A Balancing Act
The Chicago real estate market has been walking a fine line in 2024. While higher mortgage rates have slowed the frenzy seen in recent years, certain neighborhoods and segments continue to buck the trend.
Here’s the snapshot for November 2024:
- Median Home Price: The median price for homes in Chicago has reached approximately $360,000. This represents a modest increase compared to last year, driven by sustained demand and the ongoing shortage of housing inventory. While this figure is relatively affordable compared to other major U.S. cities, it still marks a significant upward trend, especially in sought-after neighborhoods.
- Average Days on Market: Homes in Chicago are taking about 56 days to sell on average. This period reflects a market where homes in well-priced, in-demand areas continue to move relatively quickly. However, properties that are priced above market value or in need of significant updates may linger longer, especially as the market slows down heading into winter.
- Inventory Levels: Homes in Chicago are taking about 56 days to sell on average. This period reflects a market where homes in well-priced, in-demand areas continue to move relatively quickly. However, properties that are priced above market value or in need of significant updates may linger longer, especially as the market slows down heading into winter.
While the market isn’t setting records, it’s showing surprising resilience as we head into 2025.
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Mortgage Rates: The Elephant in the Room
Let’s face it—interest rates have been the star villain of 2024. Borrowing costs have risen, pushing some buyers out of the market and forcing others to rethink their budgets.
Yet, Chicago’s diverse housing stock has softened the blow – and we have seen a decrease in recent months. While rising mortgage rates did cool the market, they’ve also created opportunities for Chicago buyers. With less competition, buyers have room to negotiate better deals and take their time. (Despite interest rates being above 7% for much of 2024, buyer demand has remained strong. Many potential buyers are eager to purchase homes, driven by rising rents and limited availability.)
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Surprising Trends Shaping the Market
2024 wasn’t just about numbers—it was also about trends that revealed how Chicagoans live, work, and invest.
- Suburban Drift Meets Urban Love: Families are still heading to the suburbs for more space, but remote work has given many Chicago neighborhoods a renaissance.
- Sustainability Sells: Green-certified homes and energy-efficient upgrades are no longer niche—they’re a selling point.
- Buyers Are Playing the Long Game: With higher rates, buyers are prioritizing neighborhoods with long-term appreciation potential.
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What to Expect in 2025
Looking ahead, 2025 promises to bring its own set of challenges and opportunities. Here’s what we’re watching:
- Rates May Stabilize: A drop in mortgage rates—even a slight one—could release pent-up demand, especially among first-time buyers.
- Steady Wins the Race: Hot neighborhoods that focus on cuisine, walkability, and beauty will continue their attraction as buyers continue to be both passionate and discerning.
- Neighborhood Spotlights: Areas with revitalization efforts may see increased interest from savvy buyers and investors.
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Bucktown Spotlight: A Steady Favorite with Growing Appeal
As of today, the median home price in Bucktown is approximately $749,950. This desirable neighborhood features a mix of contemporary homes and historic properties, with prices varying based on the home’s size and location. Bucktown remains a competitive market, with some homes selling for well over $1 million. If you’re considering buying in this area, it's a great time to explore available listings as demand continues to drive prices.
What Does This Mean for You?
- For Buyers: December might be your chance to snag a deal. Sellers eager to close before year-end are often more flexible, so don’t hesitate to negotiate!
- For Sellers: Stand out by pricing competitively and highlighting unique features—especially energy efficiency and smart home technology.
- For Investors: The tight rental market is a golden opportunity. Focus on multi-unit properties in up-and-coming neighborhoods for maximum ROI.
Chicago’s real estate market, much like the city itself, is complex, diverse, and full of opportunity for those who know where to look. As 2024 comes to a close, the data tells a story of resilience, adaptation, and a market poised for an intriguing year ahead.
No matter which side of the market you’re on—buying, selling, or renting—one thing is clear: Chicago remains a city where neighborhoods, and the people who shape them, continue to drive the story forward. Not ready to turn the page?
You have one more month to revel in the real estate market this year. Happy hunting!
