Illinois Real Estate Market Trends and Predictions for 2025-2026
The Illinois housing market is experiencing a steady growth trajectory in 2025, with home prices and sales volumes showing moderate changes.
According to recent data, the median sales price in Illinois for May 2025 was $315,000, marking a 5.0% increase compared to $300,000 in May 2024. The average home value across the state is currently around $285,813, a 3.5% increase compared to last year.
In the Chicago metro area, median home prices have risen about 5-6% year-over-year, reaching around $315,000 in May 2025. However, single-family home sales in the Chicago area fell about 3.5% compared to the prior year, despite a small 3.9% increase in the number of homes for sale. Homes are also staying on the market about 5% longer, indicating a softening sales pace.
The number of homes on the market in Illinois as of May 2025 was 19,890, a 6.0% increase from the 18,758 homes available in May 2024. Closed sales in Illinois totaled 12,674 in May 2025, a 4.7% decrease compared to May 2024 when there were 13,300 closed sales.
Looking ahead, Zillow predicts that the average home value in the Chicago-Naperville-Elgin MSA will increase by 3.3% by the end of 2025. Similar growth is expected in the Rockford MSA, with a predicted increase of 5.1%, and the Bloomington-Normal MSA with a predicted increase of 3.9%. However, the Rockford region is forecasted to see growth of 2.1% by May 2026, while the Mount Vernon region is projected to face a decline of 5.9% during the same period.
To stimulate more balanced developments in less accessible markets, regional strategies may need to focus on attracting investment and incentivizing homeownership. Mortgage rates are expected to cool down, averaging 6.4% in the latter half of 2025 and dropping further to 6.1% in 2026, making buying more affordable and potentially boosting demand.
Despite some cooling demand and rising inventory, prices are still predicted to grow nationally by 1.5-3% in 2025 without any sharp drops expected. However, the Illinois housing market might not follow the national trend perfectly, with some local areas potentially experiencing downturns.
In conclusion, buyers and sellers in Illinois should be prepared for a dynamic market where working with experienced REALTORS® is advised to navigate evolving practices and conditions.
- The steady growth trajectory in the Illinois housing market in 2025, as evidenced by the moderately changing home prices and sales volumes, has been noted in real-estate news.
- In May 2025, the median sales price in Illinois was $315,000, a 5.0% increase from the previous year, according to recent data.
- The average home value in Illinois is currently around $285,813, representing a 3.5% increase compared to the previous year's average.
- In the Chicago metro area, the median home price has risen about 5-6% year-over-year, reaching approximately $315,000 in May 2025, according to the data.
- However, single-family home sales in the Chicago area fell about 3.5% compared to the prior year, despite a small 3.9% increase in the number of homes for sale.
- Mortgage rates are expected to cool down, averaging 6.4% in the latter half of 2025 and dropping further to 6.1% in 2026, making buying more affordable and potentially boosting demand.
- Buyers and sellers in Illinois should work with experienced REALTORS® to navigate evolving practices and conditions in the dynamic housing market.
