In real estate, 2022 will be remembered as the year that started in a boom and ended in a bust, a profile that the year's home sales figures make crystal clear.
In booming January 2022, an unprecedented housing boom fueled by low interest rates and pandemic-era changes in what households wanted was in full swing. That month, the number of homes sold in the Chicago metro area during the month was 47% higher than the average sales in all Januarys since 2008, according to figures released at the time by Illinois Realtors.
The end of 2022 was a bust, after rising interest rates that were intended to help stifle runaway inflation had drained all the fizz out of the housing market. The number of homes sold in December in the metro area was about 11% below the 13-year average for December.
On prices, the picture is similar. In January 2022, the median price of a home sold in the nine-county metropolitan area was up 5.6% from a year before, not a huge jump unless you consider that it was on top of prices that were already up 16% in the previous January.
By December, prices had gone flat. The median price of Chicago-area homes sold in December was $288,000, up just 0.3% from a year earlier, or essentially flat. In the city, prices started the year flat and ended them down 8.1%, the biggest decline since February 2012, when the housing market was still struggling to rise from the ashes of the housing meltdown of 2007-2008.
These are figures that cover a broad market, either the enormous city or the sprawling metro area. But markets are hyperlocal. The Gold Coast housing market doesn’t behave like the market in Chatham, and the distance between Winnetka and Tinley Park isn’t measured only in miles.
To find out how each neighborhood and suburb fared in the roller-coaster real estate market of 2022, Crain’s sorted data on the 77 Chicago community areas and over 200 suburbs. The data was provided by the Chicago Association of Realtors, Midwest Real Estate Data and ShowingTime.