Have you noticed the headlines about the housing market lately? They make it sound like the sky is falling Nearly five hundred thousand more homes for sale than buyers Half a million more sellers than buyers That is the largest gap in more than a decade It is the kind of headline that makes someone wonder if the market is crashing or if this is some major shift or correction But before letting the national news send you into a spiral keep in mind that real estate is local and what happens nationally does not always match what is happening where you live
For some quick perspective remember the pandemic boom Homes were selling in twenty four hours with twenty offers over asking Buyers waived inspections and appraisals just to win a house It was chaotic and honestly unsustainable What we are seeing today is more like a long overdue exhale
The National Picture What Is Really Happening
On a national level inventory is growing There are more homes available now than we have seen in years Reports show that inventory hit one point four five million homes in April which is more than thirty percent higher than a year ago That is eighteen straight months of inventory growth This gives buyers choices again instead of forcing them to fight over every listing the way they did in the pandemic years
Bidding wars are also cooling Homes are staying on the market longer and buyers are negotiating repairs credits and normal terms again No more fifty thousand dollar over asking offers and heartfelt letters with fruit baskets
Prices are not crashing but they are softening In April home prices fell month over month in half of the fifty largest metro areas It is not a free fall It is a gentle reset And this shift is not being driven by desperate sellers It is buyer fatigue Mortgage rates are holding around six point seven to seven percent and after years of rapid price increases many buyers are choosing to wait
The simplest way to see it This is not a housing crash It is a correction We spent years driving ninety miles per hour and now the market is easing back to a normal speed
Local Reality Why Illinois Breaks The Trend
National news paints one picture but here in Illinois and in many parts of the Midwest and Northeast the market looks completely different While some regions like Texas and Florida have inventory levels above pre pandemic norms Illinois is still dealing with very low supply Inventory in our state is down more than sixty percent compared to twenty nineteen That is a major shortage and it leans heavily in favor of sellers
The Northern Illinois region sits at about two months of supply A balanced market needs five to six months To put that in simple terms remember the early days of the pandemic when toilet paper shelves were empty That is what a low supply housing market feels like When supply is short and demand is steady sellers hold the advantage
Detached home values in the region have climbed to three hundred eighty four thousand seven hundred almost ten percent higher than last year Attached homes have risen to three hundred eleven thousand up more than three percent Even though sales volume is down it is more about affordability than lack of interest Homes are still selling fast and in many suburban areas they sell even faster than the regional average
Illinois inventory is only up about six percent year over year compared to the thirty percent jumps seen in some southern states That means sellers here still have leverage Homes continue to sell near full list price and many go under contract in under a month Well presented homes still attract multiple offers
What Sellers Should Do Right Now
If you are selling be realistic about pricing This is not the time to test the waters with an inflated price Homes that sit longer than thirty days lose momentum You want exposure and strong presentation so you can use the interest you get to push the price higher
Condition matters but you do not need to take on expensive projects Knowing which updates actually deliver returns will help far more than spending money on the wrong things And lean into your agent Someone who will be honest even when it stings Not the cousin who just got licensed Your timing your lifestyle and your next step matter more than whatever story the headlines are spinning
What Buyers Should Do Right Now
Buyers also have opportunity There are more homes to choose from than last year and there is slightly less competition than during the pandemic frenzy But in our area the good homes still move quickly so you need to be decisive and strategic
Use your leverage but be smart You may be able to negotiate credits or repairs but you will not lowball a beautifully updated home in a desirable suburb and expect it to work The demand is still strong And if a home needs work do the math instead of panicking A roof in a few years or an older HVAC does not automatically make it a bad purchase If the price is right and the credit works it can be a win
Most importantly hire an agent who knows the local neighborhoods and can spot issues early This is not the moment to go solo
So What Is The Bottom Line
This market is shifting but it is not collapsing Sellers still have an edge in Northern Illinois Buyers finally have breathing room The chaos of the last few years has calmed but smart strategy still matters This is a housing correction not a crash There is no data suggesting otherwise Nationally the market is becoming more balanced and locally we are still leaning seller strong
Buyers are more selective Sellers must be sharper Everyone needs to be more strategic than they were two years ago
Key Takeaways
- National headlines do not match local conditions especially in Illinois
- The United States is experiencing a correction not a crash
- Northern Illinois remains a seller leaning market due to very low supply
- Buyers have more choices but the best homes still move fast
- Sellers must price smart prepare well and avoid testing the market
- Buyers should negotiate but stay realistic and work with a strong agent
- Strategic decisions matter more now than they did during the pandemic frenzy