Number of condo sales in 2022 dropped from 21,601 to only 17,954 in 2022.

2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. One benchmark of that is that Chicago had fewer condo sales. The number of condo sales in 2022 dropped from a 2021 sale volume of 21,601 condos to only 17,954 in 2022 (an 18% drop in # of sales).

The Chicago market for 2023 faces affordability challenges.

Nationally , the ability of buyers to finance purchases due to Higher lending rates continues to limit market activity, with pending home sales and existing-home sales down month-over-month for December 21 to December 22 falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR).

Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home. New Listings in the City of Chicago were down 14.4 percent for detached homes and 32.5 percent for attached properties. Listings Under Contract decreased 28.4 percent for detached homes and 37.5 percent for attached properties. The Median Sales Price was down 6.8 percent to $275,000 for detached homes and 12.6 percent to $300,000 for attached properties. Months Supply of Inventory increased 21.6 percent for detached units but decreased 6.5 percent for attached units. Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments

Median Sales Price in CHICAGO ONLY. Orange is the condo median and blue is the Single Family Home median. You can see the DIP that occurred that pushed up back to below pre-covid levels. For 2023 expect a more moderate drop as inventory shortages will likely keep prices from dropping as much, as buyer demand will maintain a steady low rate as people acclimate to higher rates.

This is a City of Chicago-only market graphic. The number of condo sales in 2022 dropped from 2021 from 21,601 condos to only 17,954! That is a lot fewer buyers and sellers transacting.