🏡 January 2026 Chicagoland Real Estate Market Update. What We’re Seeing Locally and Across the Entire MLS

As we begin 2026, the Chicagoland housing market is settling into a more measured data driven rhythm. January’s numbers show moderate price growth, increased inventory, and steady buyer demand. Even as interest rates remain elevated compared to last year. Below is a breakdown of what’s happening across the entire MLS and how that compares to our local west and near-west suburban markets including Berwyn, Oak Park, Riverside, Brookfield, Forest Park, Cicero, Stickney, and La Grange Park.

📊 Chicagoland Snapshot (Entire MLS – January 2026)

These figures reflect single-family detached resale homes only. Comparing January 2026 to January 2025.

🔹 Prices Are Still Rising - Just More Gradually

• Median Sale Price: $344,900 (+3.0% YoY)

• Median Price per Sq Ft: $186 (+1.1% YoY)

📌 Translation: Despite higher interest rates, prices continue to rise but at a healthier, more sustainable pace than the rapid appreciation seen in prior years.

🔹 Inventory Is Growing - But Supply Is Still Tight

• Homes for Sale: 11,356 (+14.2% YoY)

• Months of Supply: 1.8 months (flat year-over-year)

📌 Translation: More homeowners are listing, giving buyers more options but inventory is still well below a balanced market, which typically sits around 5–6 months of supply.

🔹 Activity Remains Strong

• Closed Sales: 72,294 (+6.2% YoY)

• New Listings: 105,191 (+5.0% YoY)

📌 Translation: Buyers haven’t disappeared. Demand remains strong enough to absorb new inventory as it comes online.

🔹 Homes Are Taking Slightly Longer to Sell

• Average Market Time: 43 days (+7.5% YoY)

📌 Translation: Homes aren’t flying off the shelf in a weekend — but well-priced properties are still moving in a reasonable time frame. Expect this to change in the coming months.

🏘️ Local Market Focus: Near-West Suburbs (Berwyn & Surrounding Areas)

When we zoom into our local market the story becomes even more interesting.

🔹 January 2026 vs January 2025 (Local Area)

Metric	Jan 2026	Jan 2025
Closed Units	69	75
Median Sold Price	$350,000	$365,000
Average Sold Price	$440,820	$464,454
Avg Days on Market	43	59
Total Volume	$30.4M	$34.8M

What stands out locally:

• Homes are selling significantly faster than last year.

• Prices are slightly lower year-over-year, largely due to fewer high end sales, not weakening demand.

• Entry level and mid range homes ($250K–$450K) continue to dominate buyer activity.

  
  

📈 Active & Under-Contract Inventory (Local Market)

• Active Listings: 134 homes

• Under Contract / Pending: 125 homes

📌 Key Insight: Nearly as many homes are under contract as actively listed, a strong signal that buyer demand remains healthy especially for correctly priced homes.

The most competitive price ranges:

• $250K – $349K

• $300K – $399K

• $350K – $449K

  
  

💰 Interest Rates: January 2025 vs January 2026

• January 2025: ~6.6%–7.0%

• January 2026: ~6.006%–6.25%

📌 Impact: Lower rates have increased buyer purchasing power bringing more buyers back into the market.

• Buyers need to be prepared and ready to make an offer

• Pricing accuracy for sellers matters more than ever

• Homes that need work or are overpriced sit longer and can negatively affect the sales price.

  
  

🧠 What This Market Means Right Now

🟢 For Sellers

• Pricing strategy matters more than timing.

• Inventory is up but buyers are still active and the spring market is around the corner.

• Homes that are prepared and priced correctly continue to sell quickly. If your home is on the market longer than 3 weeks its most likely the price.

  
  

🔵 For Buyers

• You have more options than last year but as more buyers come to market timing is everything.

• Less bidding-war pressure in many segments currently but we are seeing this shift back to multiple offers on correctly priced homes.

• Negotiation leverage is improving especially on homes that have been sitting. This will also shift as the spring market arrives.

  
  

🔍 Big Picture Takeaway

This is not a declining market — it’s a normalizing one with the potential to take off again.

Across Chicagoland:

• Prices are still rising

• Inventory is improving

• Buyer demand remains steady

• The market is becoming more balanced and rational

  
  

For homeowners, this means equity is still growing.For buyers, this means opportunity without chaos. This is just a look at January and the picture will change in the coming months.