December 2025 Housing Market in Illinois: Prices, Sales & Trends
December’s 2025 housing market numbers looked better than November, at least on paper. For instance, sales across the country rose by 5.1%, reaching 4.35 million units according to the National Association of REALTORS. That data sounds okay, but when you look at the pending sales, which have dropped to their lowest level in months, it’s clear people still can’t afford homes.
The same thing happened in Illinois. Sales ticked up a little, but that’s not the story. The story is how few homes you can actually buy right now and what it’s doing to prices. The good news is that if you’re buying, selling, or working with clients anywhere in Chicagoland, December’s numbers show what’s coming next.
Illinois Home Sales & Prices in the December 2025 Housing Market
Illinois REALTORS reported 10,237 homes sold in December, only 197 more than December 2024. That’s a 2% gain. For the full year, 136,650 homes changed hands, up from 131,194 in 2024. So sales went up about 4%, which isn’t much.
Looking at statewide prices, the median hit $299,900 in December 2025, up from $282,11 a year ago. That’s a $17,789 jump, 6.3% higher for basically the same number of sales.
In the Chicago metro area, there were 6,637 closings, a 2% drop from December 2024. On the other hand, the median was $355,000, up from $340,000, for the same market, an increase of $15,000.
So, three things occurred in the December 2025 housing market:
Statewide homes went up by $17,789 from last December
Chicago metro homes hit $355,000 (up $15,000)
Available inventory dropped 8.2% statewide
In short, prices were rising faster than wages because there were not enough homes available. And in a competitive market like this, anyone buying or selling a home should understand how these conditions affect title clearance and the overall closing process before moving forward.
Inventory Trends in the December 2025 Housing Market in Illinois
The real constraint in the December 2025 housing market is inventory. Illinois had only 18,421 homes for sale in December, a 8.2% drop from last year’s 20,063. It was even worse for the Chicago housing market. Only 10,801 homes were listed, a 11.3% fewer than in December 2024. In the city itself, just 2,969 homes were available, a 25.5% drop from 3,983.
The fewer homes, the more buyers get squeezed while sellers have the upper hand. That is because many people refinanced at 3% or lower a few years back, and moving now means swapping that for something over 6%, which costs hundreds more each month. So they’re staying put. This comes up constantly during mobile closings when clients try to figure out if selling actually makes sense financially in the December 2025 housing market.
Mortgage Rates, Affordability, and Buyer Behavior in Illinois
In December 2025, mortgage rates averaged 6.19% for a 30-year fixed loan. That’s down from November’s 6.24% and December 2024’s 6.72%. Even though it is better, it is still way higher than what people were used to.
The affordability crisis runs deeper than rates. Wages haven’t kept pace with home prices, and Illinois has some of the country’s highest property taxes. For example, financing a $300,000 house at 6.19% and you’re paying about $1,835 monthly before property taxes, easily adds another $500 or more in most parts of Illinois.
Therefore, someone with a 3% rate from 2021 looks at current rates and decides to stay, which means fewer homes hit the market. However, working with professionals who know title clearance helps when people finally do make the move.
Looking Beyond December 2025 Housing Market: Illinois Forecast for 2026
DePaul University’s Institute for Housing Studies thinks Illinois sales will slip about 1.8% between January and March 2026. However, prices are projected to rise, maybe by 12% by March.
This means that:
Prices will probably keep climbing where inventory’s tight
Sales volume might dip early in 2026
Affordability depends on wages, rates, and prices
And in fact, most experts think inventory improves in February. Historically, residents and real estate professionals alike believe spring originates more listings. But the real concern is whether that will be enough to change market dynamics.
December 2025 Housing Market Reaffirms the Seller Advantage
December 2025 housing market proved what we’ve seen all year! Not enough homes, driving prices higher while sales stay flat. That means sellers have the advantage right now, but spring could change that when more homes get listed. So, watch what happens with inventory and rates over the next few months.
Based in Norwood Park, Chicago, our title agency offers online orders, mobile closings, and after-hours availability to support your real estate transactions. For help with your next real estate closing, contact the Illinois title insurance and escrow specialists at Plymouth Title Guaranty Corporation.
