Before the onset of the conflict in Iran, Alonzo Abron Jr., managing broker and owner of A. Progeny Global in Oak Forest, had high hopes for the housing market this year. The current situation has shifted these expectations. Amidst the ongoing spring home buying season, real estate professionals are confronting a landscape marked by uncertainty. Rising costs of living and interest rates pose challenges since the conflict began.
Abron, who serves buyers and sellers in the south suburbs and is a former chair of the Global Real Estate Council with the Chicago Association of Realtors, expressed concerns: “Before the conflict, I assumed that people would be in a better financial position than they are now.” With escalating costs for essentials like gas and some people losing jobs, these factors inevitably impact the market.
Lutalo McGee, president of the Chicago Association of Realtors and owner of Ani Real Estate, expects more sellers will enter the market to capitalize on rising home prices. McGee also anticipates homeowners, who previously refrained from selling because of low mortgage rates secured during COVID-19, might reconsider. “There are undeniable global factors contributing to the uncertainty and inflation,” McGee pointed out.
The housing market within the south suburbs and across the Chicago metro area remains complex and challenging. Geoff Smith, executive director of DePaul University’s Institute for Housing Studies, noted a tight inventory both in Chicago and statewide, with Illinois being one of the slowest to recover inventory levels since before the pandemic.
Andretta Robinson, broker and team lead at the Titan Group of Re/Max 10 in Oak Lawn, observed an increase in south suburb home inventory within the sub-$300,000 range. Many of these homes, however, require updates and aren’t immediately move-in ready. This pattern reflects a broader trend, as Geoff Smith explained, due to ongoing economic volatility affecting housing affordability.
Additionally, mortgage interest rates play a substantial role in buyers’ purchasing power. Rates have been unpredictable, impacting potential buyers. For example, the average 30-year fixed mortgage rate increased to 6.51% from 6.36% within a week, as reported by Freddie Mac. This rise forced one of Abron’s clients to lower her target home price from $250,000 to $200,000.
According to a report from DePaul’s Institute for Housing Studies, the Chicago metro area saw closed single-family home sales decrease by 0.3% in April year over year, while prices increased nearly 5%. Statewide sales fell by 0.5% and prices rose 7.4%. The institute had forecasted a 5.1% increase in sales within the Chicago metro area for 2026, before the conflict began.
In Cook County, housing prices showed diverse trends. Prices in most submarkets increased, such as a 5.2% rise in the Oak Lawn/Blue Island area. Yet, the Calumet City/Harvey submarket experienced a 1.2% price decline.
Abron emphasized that despite economic uncertainties, south suburban areas offer affordable housing, land availability for development, and convenient transport links. However, high property taxes remain a notable downside.
When asked whether it’s a good time to buy, Abron suggests considering personal desires and capabilities due to market competitiveness. He referenced a recent listing that received an immediate offer as an example of the ongoing demand.
Michele Andrews from Matteson shared her positive selling experience after receiving multiple offers in one day. “Despite economic challenges, people always need housing,” she noted.
Joni Bradley-Scott, a real estate agent with Keller Williams Preferred Realty and Andrews’s daughter, highlighted the market’s responsiveness to life changes such as marriage or having children. Communication with clients is crucial, Bradley-Scott emphasized, aiming to help them navigate their choices wisely in the current climate.