llinois Housing Market Update – August 2025

Updated: September 2025
Author: Team Elite Realtors, Baird & Warner
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Illinois home prices continued to climb in August 2025, even as sales and inventory slipped slightly compared to the year before. Statewide median home prices rose 6.8% to $315,000, while sales fell 3.5% year-over-year. Buyers face tight supply, while sellers benefit from continued demand.

Key Takeaways – Illinois Housing Market August 2025

• Statewide Home Sales: 12,560 (−3.5% YoY)

• Statewide Inventory: 22,052 (−0.7% YoY)

• Statewide Median Price: $315,000 (+6.8% YoY)

• Chicago Metro Area Sales: 8,395 (−4.3% YoY)

• Chicago Metro Median Price: $375,000 (+5.6% YoY)

• City of Chicago Sales: 1,920 (−9.5% YoY)

• City of Chicago Median Price: $376,000 (+5.9% YoY)

• Mortgage Rate (30-year fixed): 6.59% (August 2025 average)

What the Numbers Mean for Sellers

• Rising Prices: With statewide and metro prices climbing 5–7% year-over-year, sellers continue to see strong returns.

• Low Inventory Advantage: Even as inventory inches upward, supply remains well below pre-pandemic levels, keeping competition strong.

• Quick Action Pays: Pricing homes realistically and preparing them well for market ensures faster, stronger offers.

What the Numbers Mean for Buyers

• Act Decisively: With homes moving quickly in most areas, buyers should be pre-approved and ready to write offers.

• Affordability Pressure: Prices rose nearly 7% statewide, highlighting the importance of balancing budget and flexibility.

• Long-Term Outlook: Forecasts suggest prices will soften slightly in fall before ending the year nearly 12% higher than 2024.

Regional Highlights

Statewide

• 12,560 homes sold in August 2025 (vs. 13,016 in 2024).

• 22,052 homes on the market, slightly less than last year.

• Median price reached $315,000, a 6.8% increase year-over-year.

Chicago Metro Area (9 Counties)

• 8,395 homes sold (down 4.3% YoY).

• 14,312 homes available (down 4.6% YoY).

• Median price at $375,000, up 5.6% YoY.

City of Chicago

• 1,920 sales (down 9.5% YoY).

• 4,109 homes on the market, a steep 20.3% drop YoY.

• Median price rose to $376,000, up 5.9% from August 2024.

Expert Outlook

• Forecast: Illinois home sales are projected to decline about 5% between September–November 2025 compared to last year.

• Price Trends: Seasonal dips expected in fall, but prices projected to remain strong, ending the year nearly 12% higher.

• Inventory Growth: Single-family supply has grown year-over-year for 16 consecutive months, but Illinois remains one of the slowest states to recover to pre-pandemic levels.

FAQ – Illinois Housing Market August 2025

What is the median home price in Illinois right now?
$315,000 statewide (August 2025), up 6.8% year-over-year.

How are home sales trending?
Sales dipped 3.5% statewide, with sharper drops in Chicago (−9.5%).

Is it a buyer’s or seller’s market?
Still a seller’s market, as demand outpaces supply and prices continue to rise.

What are mortgage rates doing?
The average 30-year fixed mortgage rate in August 2025 was 6.59%, down slightly from July’s 6.72%.

What’s the forecast for fall?
Home sales may dip 5% from last year, but prices are expected to stay strong and end 2025 higher overall.

Why Work With Team Elite Realtors

Whether you’re buying or selling, Illinois’ housing market rewards preparation, timing, and strategy. With over 20 years of experience, Team Elite Realtors helps clients navigate fast-paced markets and maximize results.

Planning a move in Illinois or the Chicago suburbs? Let’s create a strategy that works for your goals in today’s market.

📞 Phone: 630-286-9777
📧 Email: [email protected]
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