Current Market Conditions
My mom would have been 72 years old this week. She passed away in 2010, when I was 25.
I always had a bit of a complicated relationship with my mom, not bad, just not overly emotional. We weren’t the type of family that talked about feelings. That’s simply who we were. But even without long conversations, she taught me a lot.
In preschool and kindergarten she was always the room mom. I was embarrassed at the time, but now I see how much she showed up for me. She was always there, in ways I didn’t fully appreciate back then.
When I was a kid, I also loved to draw. My mom loved drawing too. She’d host sidewalk drawing competitions with my friends, and the winner got 50 cents. I always thought my drawings were the best, but she never let me win. She’d just smile and say, “Sometimes you’ve got to lose.” It drove me crazy at the time, but just like being the room mom, it was another way she was present in my life, teaching me lessons I wouldn’t understand until much later.
I was also the kid who wanted nicer things even though we didn’t have much. My mom would buy clothes from cheaper stores and put them in fancy bags so I’d feel good about them. Looking back, it taught me that it’s not the label or the price that matters, but the love and effort behind it.
She was an incredible cook, just not a light one. Her grilled cheese used what felt like an entire stick of butter. I gained weight easily while my family stayed lean. Instead of resenting it, I learned to take her recipes and make healthier versions. Without realizing it, she’s the reason I love to cook today.
My mom talked a lot. She was outgoing, loud, and full of energy. It used to drive me nuts as a quiet kid. And now? I’m the one who never stops talking. I get that from her.
She used to tell me stories about how my dad gave up his social life to focus on building his career. I remember saying, “I can’t believe you don’t have any friends.” Now I understand, family comes before everything.
But the biggest thing she ever gave me was belief. When I started my career, I failed over and over again for years. She always told me, “When it hits, it hits. You’ve just got to keep pushing.” It annoyed me then, but she was right. And she kept me going.
It’s funny how you don’t realize what you have until you look back on it. I don’t regret how I acted, I just use those memories to try to be a better parent today. Sometimes you don’t recognize what’s right in front of you until it’s too late.
And that’s where today’s market is.
Right now, we’re in the Holiday Market, one of the best times of the year for buyers to get a deal.
Inventory is low, demand is slower, and prices are the softest they’ll be. After the first of the year, prices typically jump 5–10%, sometimes more. What feels overpriced today will look underpriced tomorrow. Buyers waiting for “better deals next year” are going to miss the opportunity that’s right in front of them.
For sellers in the hotter areas, this extremely low inventory is an advantage. Some neighborhoods are seeing the lowest supply in years. Less competition means stronger pricing and faster movement.
For homes that have been sitting, now is the moment to strike, this is when buyers can negotiate the best deals.
Just like I didn’t fully appreciate my time with my mom until later, people may not realize that this is the moment in the market before it gets wild again.
You often only get one shot.
And right now, this is that shot.
With the Current
What Else Happened This Week
Demand this week was similar to last week. Showings are always lower during the holiday season, but the buyers who are out right now tend to be more serious and ready to move. We see far more showings in the spring, but many of those are renters posing as buyers. In some cases, one good holiday showing is worth four spring showings.
New inventory dropped this week. Many sellers are choosing to wait and list next year. For some properties, that strategy makes sense, but in highly sought-after areas where there’s virtually no inventory, now is actually the ideal time to list. Either way, we’ll likely see fewer new listings come on the market from now through the end of the year.
Rates were down slightly this week, which is a positive sign. These year-low rates are already helping create a more active holiday market, and if they hold, we should continue to see strong buyer activity through the season.
Multiple bids were prevalent again this week, mostly on new listings that hit in the outskirts. We’re still not seeing multiple-offer situations on high-rises or downtown properties.
Showings remain very low on downtown properties. Once you get above $750K, showings are rare. This continues to be the hardest-hit segment of the market and is still seeing very little activity.
We’re seeing more price cuts on existing inventory. Sellers are trying to get their homes sold before the end of the year and are reducing prices to be more competitive and attractive to buyers.
Market Trends
What's Trending
Chicago tax bills came out this week, and most people saw a pretty steep increase. This could lead to more inventory hitting the market next year, as some owners can’t afford the higher payments, don’t want to pay them, or are simply fed up with the taxes. I’ve already received calls from people wanting to discuss listing in the spring. This is definitely a trend to watch.
Pocket listings are becoming more common right now. Many sellers are nervous about building market time, so a lot of existing inventory is shifting into the pockets. Some sellers are also traveling soon and don’t want a lot of random showings, so they prefer to stay off the active market. Others simply aren’t ready to go fully live yet and are choosing to start as a pocket listing instead. I typically see the most pockets during the holidays, and I expect this trend to continue through the end of the year.
In-town buyers are an important factor to watch this time of year. With the holidays comes more people traveling to Chicago. Two key buyer groups we’ve been missing in the downtown market are empty nesters and out-of-state buyers. When they come back to the city, see the lights, the energy, and everything going on, many of them fall back in love with it. We need these buyers to return, and it will be interesting to see if they re-engage this year. This is a trend to watch.
Checking Inventory
Single Family Homes
This is still a very hot market, and not much has changed week over week. Entry-level pricing remains incredibly competitive. There is essentially no inventory under $2M, so when a property does come on, demand is intense. The luxury market is showing a slight sign of cooling, but anything unique or well-priced is still selling quickly. Overall, this remains a strong seller’s market.
Lincoln Park, Lakeview, North Center, Roscoe Village
The market here shows no signs of slowing down. The hottest segments continue to be entry-level condos, townhomes, and large duplex-downs. It still surprises me, because this is one of the first years I’ve seen duplex-downs and townhomes remain this active in Q4. Typically, this is a slower period for them, but limited inventory throughout the year has kept demand strong. Overall, this remains a strong seller’s market.
West Town, Wicker Park, Bucktown, Logan Square, Avondale
Same as above.
West Loop
It’s definitely an odd market right now. Entry-level condos that are priced below market and luxury condos that are super move-in ready are still selling fast. Almost everything else, though, is hit or miss. The homes that move tend to be unique, turnkey, or clearly under market—if they’re not, they can sit for quite a while. This remains a buyer’s market.
Old Town
This market is still red hot. The strongest demand is for walk-ups and townhomes, but high-rise entry-level condos are also continuing to sell quickly. Overall, this remains a strong seller’s market.
South Loop
This continues to be a tough market. We’re seeing fewer showings here than in almost any other area. It’s one of the few places where a well-priced entry-level property doesn’t sell quickly. That said, it’s a great place to find value. Properties that previously sold for significantly more are coming down in price, creating good opportunities for buyers. The luxury segment has been the hardest hit. Overall, this is a big buyer’s market.
New East Side & The Loop
This is still a tricky market. The upside is that entry-level condos with in-unit washer/dryers are moving much faster than before. However, the mid-tier price point remains very slow. High-end luxury properties with all the bells and whistles that are priced below market are also seeing activity. Overall, this is very much a buyer’s market.
River North, Streeterville, Gold Coast
This was one of the two hardest-hit markets during the pandemic, but we’re finally seeing some light at the end of the tunnel. Well-priced entry-level condos are selling again, some even on the first day, which we haven’t seen in quite some time. That said, the mid-tier market remains slow, and the $1M+ segment is essentially stalled. Ultra high-end luxury properties or those priced well below market are still moving, but most others are not. In many cases, if a property in that range isn’t priced below what the owner previously paid, it’s unlikely to sell. 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.
Podcasts & Vlogs
The Latest in Laricy
Laricy Uncorked E2 - Pour Decisions & Real Estate Confessions
Matt Laricy is back on Laricy Uncorked with J Maggio, Jamie Daly, and Jessica Foster for another round of laughs, stories, and sips. The crew dives into their favorite wines, wild client experiences, and candid real estate insights—all in true Uncorked fashion. It’s a mix of humor, honesty, and behind-the-scenes moments you won’t want to miss.
Laricy Uncorked E3 - Real Estate Confessions Over Red Wine — The Stories We Shouldn’t Be Telling
Grab a glass and get ready to sip and spill! In this episode of Laricy Uncorked, Matt sits down with John Paul Comes, Lexi Sandroff, and JC Fleming for an unfiltered chat about real estate, peptides, tanning beds, and everything in between. From behind-the-scenes stories to Lexi’s six-month check-in, expect humor, honesty, wild confessions, and team banter you won’t hear anywhere else.
Pressing Press
What to Read
- Home prices are overinflated in many parts of the U.S. Are we in a housing bubble?
- The Trump administration wants to allow crypto-backed mortgages. Here’s why
- How this major city became one of America’s most affordable for home buyers
- How this major city became one of America’s most affordable for home buyers
- Big Brokerages Are Back In Buying Mode
- New foreclosures jump 20% in October, a sign of more distress in the housing market
- The Pros and Cons of Seller Financing
Have a great week! Let me know if you need anything.
