Current Market Conditions
When I was a kid, Christmas season meant one thing in our house: gingerbread.
Every year my mom would roll up her sleeves and make gingerbread cookies, and not just a batch or two. She made hundreds. It wasn’t a side project for her, it was a full-blown tradition. She loved it. She was proud of it. And honestly, she was so good at it that the local paper wrote about her more than once. Her gingerbread wasn’t just dessert , it was her holiday signature.
I can still picture the whole process like it’s looping on an old home movie reel. The dough was always from scratch. I can still hear the mixer grinding away in the kitchen, that steady hum that somehow felt like the sound of Christmas starting. And the smell, molasses and spice, would fill the house and stick to everything in the best way. Even now, if I catch that scent, it sends me right back.
Once the dough rested, she’d press out the gingerbread men, line them up like little soldiers on the trays, and bake them until the edges were just right. But the real work, and the real fun, came after they cooled.
That’s when my brother and I were officially “drafted.”
Our job was decorating. My mom laid everything out like a tiny gingerbread workshop: frosting, sliced cherries for mouths, raisins for eyes, Mike & Ike Hot Tamales for buttons and flair, dark sprinkles for hair, and every color of sprinkle imaginable to finish the outfits. It was a kid’s candy-store dream… paired with the reality of a lot of cookies.
And every year I started the same way: annoyed.
I’d look at the mountain of plain gingerbread men and think, You have got to be kidding me. Decorating hundreds felt like a punishment. It felt slow. It felt endless. I’d complain. I’d drag my feet. I’d act like I was being asked to shovel the driveway with a spoon.
But then something predictable happened, every single time.
We’d get going. We’d fall into a rhythm. We’d start laughing at the goofy ones, fixing the ones that went sideways, and competing to make the best-looking men. And somewhere in the middle of all that, I’d realize: this was actually fun. It just took a minute to get there.
Decorating gingerbread men taught me something I didn’t have words for back then. It takes discipline and patience to get them right. You make mistakes. You smudge frosting. You drop a raisin eye where it definitely doesn’t belong. But you can fix it. And if you stay with it long enough, you eventually make that one perfect cookie, the one where everything lines up, the outfit looks great, and it’s almost too good to eat.
When we were done, we’d line them up and judge the best ones. Those were the “Santa cookies.” The prize winners. The ones that felt worth the effort.
Looking back, that’s the part that sticks with me most: sometimes a task feels slower than you want it to be while you’re in it… and then you finish, step back, and realize it was absolutely worth doing the right way.
That’s where the market is today.
December is one of the slowest stretches of the year. Things naturally move slower from now through the end of the month. It’s not a sign of failure, it’s a season. And every year, we see the same patterns show up:
- Buyers hit pause. After months of looking, many decide to stop, take a breath, and pick things back up in the new year. Demand softens.
- Sellers feel overwhelmed. Selling during the holidays can look like a daunting task layered on top of everything else life is throwing at them.
- Sellers get frustrated by fewer showings. They want results fast, and waiting feels like torture.
- Buyers get frustrated by fewer new listings. They’re ready to move now, and low inventory tests patience.
But this is just how December works. It’s slower, and it asks more of all of us. More patience. More discipline. More willingness to stay the course while other people step out of the game.
Because the right buyer still buys in December. The right property still comes along in December. The right deal still happens in December. It just requires the same thing gingerbread did: sticking with the process long enough to get to the good part.
And just like those years when my mom said, “Tonight’s the night we’re making gingerbread,” and I’d groan like it was the worst idea in the world… I always felt differently once we finished. Once the work was done, once the best ones were set aside, once the whole house smelled like Christmas and accomplishment.
Sometimes the wait is the point. Sometimes the discipline is what creates the result.
So if the market feels slow right now, don’t mistake that for stalled. This season rewards the people who keep showing up, calmly, consistently, and with a little faith that the perfect one is still out there, waiting to be found.
With the Current
What Else Happened This Week
Demand was stronger than Thanksgiving week but still not quite where we were a month ago. That is typical for this time of year. December tends to be a bit hit or miss with activity, and that seasonal rhythm happens every year.
We saw a solid bump in inventory this week, which is typical. A lot of listings get held back during a holiday week and then hit the market right after. That said, we did not see the kind of big post-holiday surge you would expect after most holidays. Thanksgiving is usually more muted, and this year followed that pattern.
Rates were on par with last week. They have held firm the past few weeks.
Deals were up this week, largely because last week was so quiet for new contracts. We typically see a bounce in contract activity right after major holidays, and this week fit that pattern.
Multiple bids were very much the norm for the new inventory hitting the outskirts.
Market Trends
What's Trending
The slowdown is normal. Like I mentioned above, the market simply behaves differently from now through the end of the year, and we should expect that trend to continue until after New Year’s. It is not the end of the world, and it does not mean sales stop or that things are not happening. It is still active, just not at the February or March pace.
Deal season. With that being said, if you are hoping to snag a bit of a deal, now is the window. You usually will not find discounts on brand-new inventory, it still sells fast. But on existing listings, especially in the downtown markets, this is typically the best stretch of the year to negotiate. That opportunity runs from now through year-end, and once we roll into the new year, the trend usually fades.
Holiday buyers. We usually see a strong wave of empty nesters, out-of-state buyers, and other visitors this time of year. They are in town seeing family, spending time here, and often decide it makes sense to buy a place while they are here. So far this year, we have not seen that big push yet. It will be interesting to see whether that trend shows up later in the season or if this year continues to be different through the end of the holidays.
Checking Inventory
Single Family Homes
Single-family homes, new week, same story. We are still seeing sales surge here even though it is the holiday season. Normally this segment is pretty quiet this time of year, but that has not been the case at all in 2025. Inventory still is not keeping up with demand in the entry-level market, so the good ones are moving fast. The mid-tier and luxury segments have taken a bit of a hit, but if a property shows extremely well or has standout upgrades, it is still selling quickly. Overall, this remains a sellers market.
Lincoln Park, Lakeview, North Center, Roscoe Village
The market here is still beating expectations. We typically see a significant slowdown this month, but that has not happened this year. The other standout trend is duplex-downs and townhouses, they are still breaking records. These are usually dead this time of year, but demand is staying strong. The biggest issue continues to be a lack of inventory in that segment. Overall, this remains a sellers market.
West Town, Wicker Park, Bucktown, Logan Square, Avondale
Same as above.
West Loop
We are still seeing some entry-level properties sell when they are priced well, but beyond that activity has been limited. The luxury segment in particular is very slow here, even homes priced aggressively are not moving as quickly as they are in other parts of the city. I still find it a bit odd that West Town is both hotter and more expensive than here, but that is the reality right now. This is definitely an area to watch heading into next year. For the moment, though, this remains a buyers market.
Old Town
Old Town is very hot right now. Inventory remains low and demand is high, and every segment of the market is performing well. Walk-up properties are leading the way and moving the fastest. Overall, this is a strong sellers market.
South Loop
South Loop is still struggling. We are not seeing much movement here overall, and even the entry-level segment is not moving quickly. Properties above 750,000 dollars are the slowest. This remains a buyers market.
New East Side & The Loop
This is the hardest-hit area in the city right now. A few entry-level properties are selling, but only when they are priced below market and check all the boxes buyers want. Outside of that, not much is moving. High-end luxury is basically at a standstill unless a property has over-the-top upgrades and is priced under what it is worth. Overall, this remains a buyers market.
River North, Streeterville, Gold Coast
We are still seeing a mix of positives and negatives here. Entry-level homes are selling when they have lower HOAs, in-unit washer and dryers, and are priced correctly. Mid-tier properties need to be priced below market and offer strong upgrades to move. The luxury segment is essentially dead unless a home has over-the-top upgrades and is priced well under market. Overall, this remains a buyers market.
The Big Picture:
- Outskirts: It remains a seller’s market across all categories,
- Downtown Core: Is a buyer’s market.
Podcasts & Vlogs
The Latest in Laricy
What to expect from the 2026 housing market | ChicagoNOW
Real estate expert Matt Laricy breaks down 2025 trends and explains how mortgage rates, home prices, and buyer demand could shift in the year ahead.
Chicago Holiday Home Buyers: Cautious & Ready for a Deal (Here’s How to Win) | Laricy Live E193
Thinking about buying a home in Chicago during the holidays but feeling nervous about the market? You’re not alone. Every winter I talk to buyers who are scared of overpaying, unsure about rates, and waiting for “the right deal.”Here’s the truth: the holiday season can be one of the best times to buy Chicago real estate—if you know what to look for.
What’s Happening in Chicago Real Estate This 2025 Holiday Season? | Laricy Live E192
In this Laricy Live episode, Matt Laricy shares a timely Chicago real estate update for the holiday season. Learn how the market shifts between Thanksgiving and New Year’s, including changes in buyer demand, inventory, pricing, and days on market. Matt explains what buyers and sellers should expect, why showings and listings slow in December, and how these trends create unique opportunities. If you are deciding whether to buy or sell during the holidays, this episode offers clear, data-driven insight.
Pressing Press
What to Read
- Chicago’s top agents navigated slim inventory, hot luxury market in 2025: rankings
- Watchdog warns Chicago’s $1B tax surplus budget sweep creates long-term costs
- Council bloc urges Johnson not to brush off budget overhaul
- Chicago home prices keep defying gravity
Have a great week! Let me know if you need anything.
