In March 2025, the number of homes for sale in Northwest Illinois dropped to just 150 listings, setting a new all-time low, according to local realtors. The previous low was 175 homes, recorded in April 2024. Just ten years ago, the area would regularly see thousands of homes listed every month. Since then, inventory has slowly dropped year after year. Nine out of the last ten years had fewer homes for sale each month than the year before. The only exception was 2024, which saw a slight increase in listings.
For comparison, the average number of homes for sale each month was over 2,000 in 2014, and by 2020, that number had already dropped to 684. So far in 2025, the monthly average is just 283 homes.
Why Are There So Few Homes on the Market?
One of the biggest reasons for the current shortage is higher mortgage rates. After the COVID-19 pandemic, many people refinanced or bought homes at record-low interest rates. Now, with mortgage rates climbing, homeowners are choosing to stay put rather than sell and take on a higher rate. This “lock-in effect” has made people hesitant to move, even if they might have otherwise wanted to upgrade or downsize.
Real estate experts say the low inventory is more than just a seasonal drop or a typical market slowdown. “This is different,” said a local realtor. “Ten years ago, there were so many listings — often due to foreclosures — that agents could barely keep up. Now, we’re seeing the opposite.”
Home Prices Are Rising Because of Low Supply
With so few homes available, the law of supply and demand is kicking in. Prices are climbing. In Boone, Winnebago, and Ogle counties, the average sale price in March 2025 was $216,771, up 7% from the same month last year. Still, that’s lower than the state average, which was $295,000 in March.
This price growth reflects the strong demand from buyers competing for a limited number of homes. In many cases, this leads to bidding wars, higher offers, and homes selling faster than they did even a year ago.
Buyers Are Coming from the Suburbs
A new trend is also adding to the demand: buyers from the Chicago suburbs are moving to Northwest Illinois. Thanks to remote and hybrid work options, many people don’t need to live close to their jobs anymore. Some only have to go into the office once or twice a week, making longer commutes more manageable.
According to David Dale Johnson, a managing broker at BHHS Crosby Starck Real Estate, at least 30% of his sales in the last two years were to people relocating from the Chicago area. These buyers often bring higher budgets and are eager to find homes in quieter, more affordable areas.
It’s a Great Time to Be a Seller
For homeowners thinking of selling, now is one of the best times in recent history. Homes are selling quickly, in about 30 days on average. Last year in July, the market was even hotter, with homes selling in as little as 9 days. This quick turnaround is a big change from the past, when sellers had to wait through weeks of showings and often received low offers.
“This is a golden time for sellers,” said another local realtor. “Years ago, it was a buyer’s market. Sellers had to deal with a lot of stress and uncertainty. Now, if your home is in good condition and priced fairly, you’re likely to get strong offers fast.”
Final Thoughts
Northwest Illinois is facing a serious housing shortage, with the fewest homes for sale in decades. Homeowners are staying put because of higher mortgage rates, while new buyers — especially from the suburbs — are eager to move in. As a result, home prices are climbing, and the market is strongly favoring sellers. If you’re a homeowner thinking about listing your property, now might be the perfect time.
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