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Redfin reported that October is an easier month to negotiate prices for buyers in 16 major U.S. cities, including Chicago. However, due to high mortgage interest rates and insufficient supply, home prices in Chicago continue to rise.
chicago After experiencing fierce competition in spring and summer, the housing market gradually cooled down with the arrival of autumn. The latest analysis from real estate website Redfin shows October is the month of the month for Chicago and othersboston ,philadelphia The best month to negotiate prices for buyers in 15 major U.S. cities, including Orlando and Orlando. Data over the past five years shows Chicago’s average home transaction price in October was on average about 10% lower than the peak season in June. However, the 30-year fixed mortgage interest rate has risen to 7.4%, which still discourages many buyers.
Realtor Tommy Choi of Keller Williams One Chicago recently sold a townhouse in popular Lincoln Park to fewer than 30 visitors and received four offers. He said that during the peak summer season, the number of visitors to a single object could exceed 100, and the number of bids received would reach about 10. The home ultimately sold for about $100,000 more than the asking price, and if sold in the summer, the price may have been even higher.
Daryl Fairweather, chief economist at Redfin, said that as we enter October, unsold homes often make sellers more willing to make concessions, including accepting offers below the asking price, taking the initiative to lower prices or providing other preferential terms. Many homeowners don’t want the deal to drag on until the end of the year holiday season and are rushing to close their sale.
Data from the Illinois Realtors Association show that between 2021 and 2025, the average residential transaction price in Chicago in October was on average about 10% lower than in June. The longer a home remains on the market, the more willing the seller is to lower the price.
Ezekiel Morris, managing broker of EXIT Strategy Realty/EMA Management, said the main problem in the Chicago housing market this year is still the insufficient supply of housing and the heavy burden of purchasing a home.
Although fall is typically a favorable time to buy a home, home prices in Chicago have continued to rise in recent years. Redfin data shows that the average residential transaction price in the Chicago metropolitan area was 275,000 yuan in October 2020. This is expected to increase to 366,500 yuan in October 2025, an increase of nearly 33% in five years.
If compared with the peak season in June, the average transaction value in 2020 was 269,000 yuan, and it has reached 407,000 yuan in 2025, an increase of nearly 51%.
In addition to rising housing prices, rising mortgage interest rates have further reduced home affordability. The average interest rate on a 30-year fixed mortgage is 7.40%, up from 6.27% a year ago, according to the latest data from Freddie Mac.
Redfin reported that pending home sales in the United States in September declined by 4% compared to August, and an annual decline of 8.6%. It was the first time in three years that pending home sales declined in the 50 most populous metropolitan areas of the United States. Among them, Chicago’s pending residential sales volume decreased by 5.8% year-on-year, and the cancellation rate of signed transactions reached 14.1%.
Fairweather pointed out that Chicago is different from other areas of the United States because housing supply is tight and buyer demand is relatively strong. However, October is still the most favorable time to negotiate, as high mortgage rates have driven many buyers out of the market and there is less competition.
Dan Geldam, executive vice president of CrossCountry Mortgage’s mortgage business, said mortgage interest rates have risen sharply this year, partly because the war in Iran has lifted oil prices and inflationary pressures. The company has also recently received very few inquiries from potential customers.
Gildem said the end of the year is often full of home buying opportunities, but whether it’s a good time to buy depends on one’s financial situation. He suggests buyers discuss it with a mortgage professional first to confirm the monthly payment amount.
Tommy Cui reminded that if buyers blindly wait for interest rates to fall next year, they will not be able to buy cheap houses, because no one can accurately predict when and how much interest rates will fall. Buyers who are still actively looking for homes can take advantage of less competition to receive more favorable transaction conditions.
Summary FAQ
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As the market cools after the fall, unsold homes make sellers more willing to make concessions, such as accepting lower bids, lowering prices or making concessions, and many homeowners do not want to delay transactions until the year-end holidays.
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Data over the past five years show that the average residential transaction price in Chicago in October was on average about 10% lower than in June; However, from 2020 to 2025, overall housing prices still increased significantly, reflecting a long-term trend of higher prices.
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Mainly due to the insufficient supply of housing and the heavy burden of home purchases, as well as the increase in 30-year fixed mortgage interest rates to 7.4%, many buyers have withdrawn from the market. However, for those who are still looking at homes, competition has become relatively less.
