Chicagoland Real Estate Market Update: What's Ahead for the Winter Months

The future of the housing market is never certain, even for those of us whose lives and professions revolve around keeping tabs on the real estate world. But there are always trends that point to where the real estate market will head next. As our real estate agents in Chicago look ahead to 2026, we're able to make some very well-educated guesses about what the market will look like in the year ahead. 

2026 Market Predictions in Chicagoland

If you're planning to buy or sell a home in Chicagoland in 2026, here's what you can expect. 

More homes will sell

After a couple of years during which the housing market seemed to be stuck in neutral, 2026 may be the year when it kicks back into gear. The National Association of Realtors predicts roughly a 14% nationwide increase in existing home sales compared to the previous year.

Will that impact Chicagoland? Almost certainly. The number of homes sold in 2025 is projected to be modestly higher than in 2024, but all indications suggest that the jump in 2026 will be more pronounced. 

Mortgage rates will be lower

One of the driving factors behind the expected growth in home sales is an anticipated drop in mortgage rates. That being said, it might not be a smooth ride. Expect some volatility as inflation, the strength of the labor market, and decisions made by the Federal Reserve all have a strong impact.

It might not sound like a lot, but even a modest drop can significantly improve affordability, making homeownership more accessible to Chicagoans who might have been on the fence about buying. 

Home prices will increase slightly

The overall trend in Chicago real estate prices over the last decade has been steadily upward, give or take an occasional dip here and there. That trend is likely to continue next year, but prospective buyers shouldn't worry too much. Chicago home prices are likely to rise only modestly from current prices.

At the time of publication, the median home in Chicago sells for $308,252, with about 38.5 percent of sales over list price as of September 2025. Nationwide, the rate at which home prices increase is expected to be at a much more sustainable pace in 2026.

Best Chicago neighborhoods in 2026

For anyone thinking about buying a home in Chicago in 2026, it's worth considering which of the city's more than 200 neighborhoods and community areas best meet their needs and budget. These are some neighborhoods to watch this coming year:

• Rogers Park: Overlooking the lakefront and less than 30 minutes north of the Loop, Rogers Park offers an affordable option for buyers looking for diversity, convenience, and great dining options.
  
  
• Lincoln Square: Popular among young professionals and families, Lincoln Square feels like a small town within the city. This North Side neighborhood is known for its vibrant shopping and dining district and tree-lined streets.
  
  
• Beverly: Beverly is an affordable neighborhood with brick bungalows and Craftsman homes that are mostly owner-occupied.
  
  
• Mount Greenwood: With a peaceful and suburban vibe, Mount Greenwood is another prime South Side neighborhood with home prices well below the city average.

Contact us today to learn more about the future of Chicago's real estate market. If you're looking to buy or sell a home in Chicagoland in 2026, our agents are here to help every step of the way.