Current Market Conditions
Every year around this time, I find myself thinking about a Christmas tradition from when I was a kid. For me, it’s the White Christmas Tree.
My family loved Christmas, and my mom really loved decorating. Every year, there was one thing that absolutely had to go up. No matter what. It was the centerpiece of the house. Her pride and joy.
A 10-foot, artificial, all-white Christmas tree.
Putting it up was an event, and not always a pleasant one.
The responsibility always fell on my brother and me. When we were younger, we weren’t even big enough to get it out of the attic, let alone attach the top section. So we’d call in backup from our neighbor, Justin Hartley (yes… that Justin from This Is Us).
The three of us would spend days working on it. First dragging it down from the attic. Then separating the massive sections. Then assembling it piece by piece. Then came the lights, so many lights. Every step felt endless.
There was bickering. Yelling about who wasn’t holding something straight. Who tangled the lights. Who was doing it “wrong.”
It was frustrating. Exhausting. And in the moment, you just wanted it to be over.
But then, it would finally be standing.
And without fail, everyone would stop. You’d take a step back. The room felt different, softer, warmer. Like Christmas had officially arrived.
As much as I hated putting that tree up, once it was there, it was impossible not to love it.
Even now, when I think about Christmas, that tree is the first thing that comes to mind. The ornaments we collected from our travels. The little Christmas train we ran around it. Sitting near it during Christmas dinner. Even the arguments we had nearby somehow became part of the memory.
It took real work, but the memories made around it were worth every bit of effort.
And that’s exactly how the real estate market feels right now.
Buyers have been putting in the work all year: searching, touring homes, getting outbid, staying patient.
Sellers have been doing their part: preparing their homes, keeping them show-ready, navigating showing after showing.
A lot of effort has already been invested.
Now, as we move into the stretch between Christmas and New Year’s, the market naturally slows. This is consistently the quietest two weeks of the year. People step back from work. They spend time with family. They slow the pace and take a breath.
We won’t see many new listings. We won’t see much showing activity. Negotiations pause. Decisions wait.
But just like that tree, this quiet moment doesn’t mean nothing is happening, it means the work has already been done.
This is the time to step back, take it all in, and enjoy the memories you’re making, knowing that once the calendar turns, momentum will build again.
With The Current
What Else Happened This Week
Demand has been strong, but this represents the final push. We expect activity to slow significantly from this week through the start of the new year.
Inventory was practically nonexistent, and I expect this to remain the case through the end of the year.
Rates dropped this week. Another positive sign for the market.
We saw a push in contracts this week, which is typical in the period leading up to a major holiday, as many buyers and sellers aim to finalize deals before slowing down for the rest of the year.
Multiple offer situations were prevalent on new listings that hit the market this week.
Demand for downtown luxury properties was lower than expected, and we continue to see limited buyer interest in that segment.
Market Trends
What's Trending?
We are seeing the market move into a pause, which is typical for this time of year. Many people step back to enjoy the holidays, travel, and slow down before picking things back up after the first of the year.
We are entering the early stages of a new five-year housing cycle. I believe the previous cycle began around 2020, which puts 2026 as the start of the next one. Historically, housing markets move in clear multi-year cycles, and the shift ahead is an important one. What does this mean? I will be writing more about it, but the early signs are already there. Warmer-climate markets are likely to see values soften and demand cool, while major city markets, especially downtown areas, are positioned to strengthen. This is a transition worth watching closely, and those who understand it early will be better positioned moving forward.
Buyer consultations have been nonstop the last few weeks. Nearly every buyer I am meeting with is saying the same thing: they are planning to seriously start their search after the first of the year. This tells me one thing. Demand is being delayed, not lost. Once January hits, buyer activity is likely to be significantly higher than what we saw in December. This is a trend worth watching closely.
Checking Inventory
Single Family Homes
Activity has been surprisingly strong. Even during Christmas week, we are seeing homes continue to move quickly. Entry-level homes are performing the best right now, largely due to extremely limited inventory. When a well-priced property in this segment hits the market, it tends to sell very quickly. We are seeing a slowdown in the mid-tier and luxury segments, as many buyers in those price ranges are focused on the holidays. That said, if a property in these categories is priced correctly and shows exceptionally well, it can still move fast. Overall, this remains a seller’s market.
Lincoln Park, Lakeview, North Center, Roscoe Village
This area continues to over perform relative to the broader market. The primary driver is a severe lack of inventory. When a well-priced property comes on the market, it tends to sell very quickly due to strong buyer demand. Conversely, homes that are overpriced, located in less desirable pockets, or require significant work are more likely to sit. For truly strong new listings, we are still seeing immediate and aggressive buyer interest. Looking ahead to next year, demand is expected to increase further, which should only intensify competition. Overall, this remains a seller’s market.
West Town, Wicker Park, Bucktown, Logan Square, Avondale
Same as above.
West Loop
The West Loop continues to experience some ups and downs. A limited number of properties are selling, but overall we are seeing more price reductions than homes going under contract. There are certainly standout listings that are selling quickly; however, demand across the broader market has remained relatively low. The West Loop is a buyer’s market.
Old Town
Old Town continues to perform extremely well, with strong demand and limited inventory driving activity. Not every property is moving quickly. Dated units, particularly in high-rise buildings without in-unit laundry, are seeing longer market times, as are listings that are priced too aggressively. However, well-priced new listings are selling very quickly. Overall, this is a seller’s market.
South Loop
The South Loop is currently one of the weakest-performing markets. Buyer demand has been limited, while inventory continues to build. Although a small number of properties are selling quickly, many sellers are choosing to step back and wait for improved conditions next year. In the near term, this may help reduce overall inventory levels and potentially set the stage for improved momentum going forward. For now, the South Loop strongly remains a significant buyer’s market.
New East Side & The Loop
This remains a very challenging area overall. We are seeing some momentum in entry-level condos that are underpriced and offer low HOAs, in-unit laundry, and strong finishes. Beyond that segment, very few units are going under contract. A limited number of standout luxury properties priced below market are moving, but similar to other areas, we are seeing far more price reductions than homes going under contract. Overall, this remains a buyer’s market.
River North, Streeterville, Gold Coast
This market is very much a tale of two segments. The entry-level market is performing relatively well, with many listings priced at $300–$325K or below selling quickly. Properties in this range tend to move when they offer low HOAs, in-unit laundry, and updated finishes. Dated or overpriced listings, however, are continuing to sit. The mid-tier market has been very slow, with limited buyer demand. The luxury segment is among the slowest in the city, with minimal activity overall. This is somewhat disappointing, as we typically see a holiday push from in-town buyers during this time of year, which has not materialized. Overall, this remains a buyer’s market.
The Big Picture:
- Outskirts: It remains a seller’s market across all categories,
- Downtown Core: Is a buyer’s market.
Podcast & Vlogs
The Latest in Laricy
Laricy Uncorked E4 - Building Strong Broker Relationships Over Wine with Jeff Lowe & Jena Radnay
Laricy Uncorked with Jeff Lowe and Jena Radnay blends great wine, real talk, and strong industry relationships in an intimate conversation at the Gossip Wine Room. Over drinks and laughs, they dive into pop culture, Disney favorites, and lifestyle topics, while touching on the value of positive, collaborative relationships across real estate. Relaxed and candid, this episode highlights how trust, connection, and community, paired with good wine, support long-term success in Chicago real estate and beyond.
2025 Real Estate Market Recap | Chicago Trends + Laricy Team Highlights | Laricy Live E194
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Have a great week! Let me know if you need anything.
