What You Need To Know About Chicago’s 2025 Housing Market

By John Lyons

John Lyons, a distinguished broker associate at Baird & Warner, has carved a niche in the Chicago real estate market with his comprehensive, client-first approach. With over $130 million in career sales, Lyons has a proven track record in assisting a diverse range of clients, including luxury home buyers, first-time buyers, sellers looking to move up, and investors.

Are you thinking about buying or selling a home in 2025? If so, there’s some exciting news you need to know. After a year of high prices and interest rates, things are looking up for both buyers and sellers in the Chicago real estate market. Today, I’m going to share expert forecasts for what 2025 has in store for Chicago real estate.

What happened in 2024? In 2024, Chicago’s real estate market saw a lot of changes. Home prices went up by 5.69%, even though interest rates were hovering around 7%. This shows that the demand for homes is still strong despite higher costs. The north side of Chicago even saw a 2.6% increase in single-family home prices, suggesting the market is stabilizing.

What does this mean for 2025? For 2025, things are looking even better. Loan limits are going up, which means buyers can afford more. Interest rates are expected to drop to the mid-6% range. This could lead to more people jumping into the market. If you’ve been waiting for the right time, it could be now.

Sellers, if you’ve been holding onto your home because of a low mortgage rate, this year might be the right time to make a move. If your home no longer fits your needs, it could be a great opportunity to sell. Plus, if you’ve built up strong equity in your home, you’re in a good position to get a good price.

Why could 2025 be the year for you? Whether you’re thinking of buying or selling, 2025 has the potential to be a great year. Buyers have more purchasing power, and sellers might be able to get a better deal due to strong equity. If you’ve been holding off, the market is shifting in your favor.

The market is looking strong for both buyers and sellers right now. If you have questions about the market and what your next move could be, you can call or text me at (773) 558-7133 or email me at john.lyons@bairdwarner.com to discuss your real estate goals. I’ll help you navigate the 2025 market and ensure you make the right decisions with confidence and ease.