(Above) Chicago’s Lakeview neighborhood, where median home prices increased 25.7 percent in July 2025, compared with July 2024, but home sales were down 9.6 percent. Photo by 606 Vision.

By Don DeBat

Aug. 18, 2025 – Chicago resale home hunters continue to be caught in the vice grip between rising prices and declining listing inventory.

That’s the consensus of the Baird & Warner August market analysis covering the elite neighborhoods of Gold Coast/Near North Side, Lakeview, Lincoln Park, and North Center.

Home sales dipped slightly in July 2025 compared with the same month in 2024 while home prices rose as a result of pressure from historically low inventory levels, noted Baird & Warner broker John Irwin, co-author with Jackie Lafferty of the August 2025 Market Analysis for Chicago’s North Side.

“Declining inventories continue to turn up the heat on an already hot buyer’s market,” said Irwin.

Despite sagging sales and rising prices, the North Side resale home market is still very active, he noted.

“Seller’s brokers are still busy managing large open house turnouts and multiple offer contracts and, as a result, are shrinking available showing times,” said Irwin. “Buyer’s brokers continue to rush to be the first in line for showings and are adding new incentives to their contracts in an effort to make their offer the most attractive. Buyers often have to make offers after touring the home once, without a second showing.”

One ray of sunshine on the market is home loan interest rates, which continue to decline nationwide. On August 14, Freddie Mac’s Primary Mortgage Market Survey reported that benchmark 30-year fixed-rate home loans averaged 6.58 percent, down from 6.63 percent a week earlier. A year ago, lenders were charging 6.49 percent for 30-year loans.

“Mortgage rates fell to their lowest level since October of 2024,” said Sam Khater (left), Freddie Mac’s Chief Economist. “Purchase application activity is improving as borrowers take advantage of the decline in home loan rates.”

Lenders were charging an average of 5.71 percent on 15-year fixed mortgages on August 14, down from 5.75 percent a week earlier. A year ago, 15-year fixed loans averaged 5.66 percent.

The Freddie Mac survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20 percent down payment and have excellent credit.

Here are the highlights of the Baird & Warner analysis on the four key neighborhoods:

Median home prices. July posted a solid 6.9 percent price gain compared with July 2024. All four neighborhoods posted price increases from 0.1 percent in North Center to a whopping 25.7 percent in Lakeview.

Home sales. Only 608 homes were sold in July, down 0.4 percent when home sales dipped from 611 units in July 2024. Increases in Lincoln Park (3.2 percent) and the Gold Coast/Near North (5.5 percent) were offset by decreases in Lakeview (9.6 percent) and North Center (7.5 percent).

For the second consecutive month homes priced over $1 million posted increases, while lower-priced homes accounted for the overall monthly decrease. (Right) Homes in North Center.

Homes under contract. A total of 524 North Side homes went under contract in July, which represented a 3.4 percent decrease compared with July 2024. Gold Coast/Near North reported the only increase, while Lakeview, Lincoln Park, and North Center reported decreases.

New listings. There were 883 new listings added to the MLS in July, which represented a 12.4 percent decrease from July 2024. All four neighborhoods reported listing decreases ranging from -8.1 percent to -29.0 percent.

When looking at July new listings by price point, luxury homes priced at more than $2 million reported a 1.6 percent increase over July 2004, while homes priced under $2 million reported decreases ranging from -4.5 percent to -16.9 percent.

“Despite the many multiple offer situations in the current market, sellers should be sure that their listing price reflects the true market value of the neighborhood and property type,” advised Irwin (left).

“Sellers that overprice their homes in an effort to take advantage of low inventory levels can still experience long market times. Some savvy sellers are deliberately pricing their homes under market value in an effort to drive up the price through multiple offers,” he said.

Market needs more inventory

With the current turmoil at the national and local levels, events continue to unfold. Irwin said this makes it impossible to predict with certainty how our local real estate business will be affected.

“One thing that is certain is that the market needs a major influx of inventory, but many homeowners are still reluctant to let go of their existing 2 percent-plus and 3 percent-plus mortgage interest loans on their current homes,” Irwin said. “Political and economic uncertainty along with perceived – or actual – crime activity rates are also keeping sellers on the sidelines.”

July Median North Side Home Prices

North Side home prices rose 9.3 percent year-to-date compared with the first seven months of 2024. July 2025 prices rose 6.9 percent compared with July 2024, reports Baird & Warner.

Median price increases from July 2024 to July 2025 were:

• Gold Coast/Near North: 4.1%
• Lakeview: 25.7%
• Lincoln Park: 4.3%
• North Center: 0.1%