Chicago Luxury Market Summer 2025: Data-Driven, Selective, and Steady

Chicago Market Update: Summer 2025 

As we move into the summer selling season, the Chicago real estate market continues to display resilience and momentum, despite fluctuating rates and inventory constraints. For those navigating the high-end space, there’s a compelling story unfolding beneath the surface. In the Chicago market, the threshold for what is considered the luxury market surpassed the $1m mark quite some time ago. 

National Context, Local Relevance

According to recent coverage from MSN's real estate insights, mortgage rates are holding firm near 7%. On paper, this could spell hesitation. But the data says otherwise, particularly in urban luxury markets like Chicago, where serious buyers are still stepping in and acting decisively.

Buyers in the top-tier segments are increasingly strategic. They're drawn to properties that are move-in ready, well-located, and priced in line with current market dynamics. The takeaway? Well-presented listings are winning.

Chicago Market Snapshot: May 2025

• Median Sale Price (City of Chicago): ~$400,000 (+9.1% YoY)

• Average Home Value: ~$315,000 (+1.6% YoY)

• Sale-to-List Price Ratio: 100.6% — Homes are selling at or slightly above asking

• Median Days on Market: 49 days — Two days faster than May 2024

• Sales Volume (Citywide): ~2,578 closed sales (-6.9% YoY)

In the broader Chicago metro area, the median home price hit $370,000 in April (+5.7% YoY). However, inventory remains tight within city limits, down over 12% compared to this time last year.

Selling in the upper-tier? 

1. Inventory is Lean, and That’s Your Edge
While the suburbs are seeing modest supply increases, the city’s high-end inventory is still tight. If you’re selling in a prime neighborhood like the Gold Coast, Lincoln Park, or Streeterville, this scarcity positions your home for strategic leverage.

2. Speed Still Matters
With a median market time under 50 days, luxury homes that are well-staged, well-marketed, and priced smartly are still moving. Presentation is critical.

3. Buyers Are Adjusting to Rates
Yes, mortgage rates are hovering near 6.7%–6.8%, but high-net-worth buyers are adapting. Many are leveraging jumbo loans, paying cash, or shifting expectations to match opportunity.

4. Premium Suburb Activity Boosts the City
Buyers priced out of new-construction luxury in places like Glenview or Burr Ridge are redirecting their attention inward—to architecturally rich, turnkey homes in the city with a lifestyle payoff.

Agent Perspective: Why It’s a Premier Seller’s Window

We’re seeing:

• Near-record sale-to-list ratios in select areas

• Faster selling times in many areas

• A strong appetite for city living, even amid national headlines suggesting market cooling

Chicago may have dropped on some national “hottest market” lists, down to 39 from 22, but that’s not the whole story. Our local luxury segment is performing, just more selectively. When positioned correctly, listings are selling—and often above asking.

Let’s also be clear: this is not the market to "test" a price. It’s not the time to throw a number out and hope it sticks. Today’s buyers—and their agents—see the same data. Your home, regardless of how special it may be to you, is not a unicorn. That market is over. Pricing must align with reality. Consult a professional, review the numbers, and trust the data. The numbers don’t lie.

Final Word

Chicago’s luxury market isn’t “on fire.” It’s more refined than that.

It’s selective, strategic, and seasoned. Properties that meet the market with clarity, quality, and readiness are still commanding attention and price.

If you’re considering selling, now is the time to lean into that preparation and take advantage of the summer buyer pool. And if you’re buying, know this: Chicago’s luxury homes continue to deliver value, style, and long-term upside—especially in the city’s most iconic neighborhoods.

Let’s connect if you’re curious about what this moment could mean for you.

— Craig Hogan & Rudy Zavala
Hogan Zavala Group | Engel & Völkers Chicago

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