The Chicago, IL metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 1.3% year-over-year, settling at $335,500. In contrast, the Median List Price has seen a significant increase of 12.9%, reaching $349,000. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic factors.

Price Per Square Foot metrics further illustrate this trend. The median Price Per Square Foot has risen by 9.1% to $210.63, while the Median List Price per square foot has increased by 6.1% to $221.52. These figures indicate a robust demand for space, despite the overall decline in sales prices.

In terms of sales activity, the number of Homes Sold has increased by 7.6% year-over-year, totaling 4,293 units. Pending Sales have also risen by 2.8%, reaching 5,805. This uptick in sales activity is accompanied by a modest 1.1% increase in New Listings, which now stand at 5,417. However, inventory has decreased by 8.7% to 13,201, contributing to a significant 50% reduction in Months of Supply, now at 3.1 months. This reduction in supply could be a driving factor behind the increased competition among buyers.

The Median Days on Market have increased by 5% to 70 days, indicating that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio has seen a marginal decline of 0.1%, now at 98.6%, suggesting that homes are selling slightly below their list prices. Additionally, the percentage of Homes Sold above list price has decreased by 3.6% to 28.4%, further highlighting the shift in market dynamics.

Price Drops have become more common, with a 4.5% increase, now affecting 17% of listings. This trend may reflect sellers' adjustments to align with market realities. Meanwhile, the percentage of homes going off-market within two weeks has slightly decreased by 0.5% to 35.7%, indicating a stable but competitive market environment.

Overall, the Chicago metro area housing market in January 2025 is characterized by a mix of rising list prices and increased sales activity, juxtaposed with declining sales prices and inventory. These dynamics suggest a market in transition, with potential opportunities for both buyers and sellers navigating the evolving landscape.