Chicagoland Real Estate: Key Trends and Insights Closing Out 2024

As 2024 winds down, the Chicagoland real estate market remains a dynamic and evolving landscape. From predictions of market recovery to notable transactions in the luxury sector, there are numerous trends shaping the region’s housing outlook. Here’s a comprehensive look at the latest developments:

2025 Market Predictions: What Lies Ahead?

Real estate professionals are cautiously optimistic about the upcoming year. Industry leaders foresee increased market activity fueled by anticipated declines in mortgage rates.

• Mike Golden, Co-Founder and Co-CEO of @properties Christie’s International Real Estate, suggests that while price growth may stagnate, lower interest rates will invigorate transactions and inventory.

• Similarly, Diane Glass, CEO of Berkshire Hathaway HomeServices Chicago, predicts a slight market rebound as more buyers and sellers re-enter the scene, encouraged by more affordable borrowing costs.

This outlook positions 2025 as a potential turning point for a market that has navigated fluctuating conditions over the past year.

Challenges in Chicago’s Luxury Market

The luxury real estate market in Chicago continues to face headwinds, with high-end properties often selling at significant losses. A striking example is billionaire Ken Griffin’s recent sale of his No. 9 Walton penthouse for $19 million—a staggering 44% loss from the $34 million he paid in 2017.

This trend underscores broader challenges within Chicago’s luxury sector, where even the wealthiest sellers are grappling with diminished property valuations. For buyers, however, this may present unique opportunities to acquire premier properties at a discount.

Major Corporate Moves: Compass Acquires @properties Christie’s

In a significant corporate development, Compass has announced its acquisition of @properties and Christie’s International Real Estate for $444 million. Despite the magnitude of the deal, Thad Wong, CEO of @properties Christie’s International Real Estate, assures stakeholders that daily operations will remain unaffected.

This strategic acquisition aims to drive growth without office consolidations or staff downsizing, marking a bold step in the evolving landscape of real estate brokerage.

Uptown’s Hazelton Acquisition: A Signal of Market Demand

Investment activity in Chicago remains robust, as evidenced by Wayland Real Estate Capital’s acquisition of The Hazelton. Located at 851 W. Montrose in Uptown, this 60-unit micro-apartment building has been fully modernized and is now completely leased.

This transaction highlights sustained demand for quality housing in Chicago neighborhoods, particularly for thoughtfully designed and efficiently managed properties.

Market Stabilization: Subtle Signs Emerging

While Cook County’s real estate market remains competitive, analysts are noting early signs of stabilization. Limited inventory continues to fuel competition, but some predict that 2024’s frenetic pace may begin to level off as we enter the new year.

What This Means for Buyers, Sellers, and Investors

Whether you’re looking to buy, sell, or invest, the Chicagoland real estate market offers unique opportunities and challenges. Here are a few takeaways:

• Buyers: Take advantage of potential interest rate cuts to secure more affordable mortgages and explore discounts in the luxury market.

• Sellers: Monitor market trends closely. With increased activity expected in 2025, strategic timing could maximize your returns.

• Investors: Look for neighborhoods like Uptown, where demand for well-managed rental properties remains strong.

The Chicagoland real estate market remains one to watch as 2024 draws to a close. Stay tuned for more updates and expert insights as we gear up for what’s expected to be a transformative year ahead!

Sources

• Chicago Real Estate Predictions 2025

  • Chicago Agent Magazine: 2025 Predictions

• Challenges in Chicago’s Luxury Market

  • The Real Deal: Ken Griffin's Loss

  • Architectural Digest: Ken Griffin Takes a Loss

  • New York Post: Record Penthouse Sale Loss

• Corporate Moves: Compass Acquisition

  • Chicago Business: Compass Acquires @properties

• Investment in Uptown

  • Crain’s Chicago Business: Hazelton Acquisition

• Market Stabilization

  • Chicago Tribune: Cook County Trends