If you’re a homeowner in Chicago or the western suburbs thinking about selling in 2026, you need to understand what’s happening in the market right now — not what happened six months ago. I track these numbers every month because my clients deserve real data, not guesswork. Here’s where we stand heading into February 2026.
Mortgage Rates: Holding Steady in the Low 6s
As of February 1, 2026, the average 30-year fixed mortgage rate sits at 6.18%. The 15-year fixed is at 5.57%, and 5/1 ARMs are running about 5.49%.
What does this mean for sellers? Buyers are still in the market. Yes, rates are higher than the 3% days we saw during COVID — those aren’t coming back. But here’s the thing: buyers have adjusted. They’re pre-approved, they’re serious, and they’re not waiting around for rates to drop to 4%. The people shopping right now are motivated.
On a $365,000 home (Chicago’s current median), a buyer at 6.18% with 20% down is looking at roughly $1,780/month in principal and interest. That’s very doable for most dual-income households in the Chicago metro.
Chicago Home Prices: Still Climbing
The median sale price in Chicago hit $365,000 in December 2025 — that’s up 4.3% year-over-year. The median price per square foot rose even faster at 5.3% to $260/sqft.
Here’s what I find interesting: despite higher rates, prices keep going up. Why? Inventory is still tight. There simply aren’t enough homes on the market to meet demand. Chicago had 1,939 homes close in December 2025, up from 1,836 the year before. More transactions, higher prices — that’s a seller’s market signal.
The average home is selling in about 67 days and going for 98.5% of list price. Hot homes? They’re going above asking in under 38 days.
What This Means If You’re Selling in 2026
Here’s my honest take after helping dozens of homeowners sell in this market:
- Spring is your window. Inventory typically increases in March and April. If you list before the flood, you’ll face less competition and attract the early-bird buyers who’ve been waiting all winter.
- Price it right from day one. Buyers are savvy. They have access to the same data you do. Overpricing by even 5% can leave you sitting for weeks while properly-priced homes fly off the market.
- Condition matters more than ever. At 6.18% rates, buyers are stretching their budgets. They don’t want to buy a project — they want move-in ready. My construction team at Redeveloped Properties can help you make targeted improvements that actually move the needle.
- Don’t skip the pre-listing inspection. Surprises kill deals. Know what you’re working with before a buyer’s inspector finds it.
The Western Suburbs Advantage
I focus heavily on Chicago’s western suburbs — Downers Grove, Elmhurst, Glen Ellyn, Wheaton, Naperville — and these markets are outperforming the city average. Families are paying premiums for good school districts, bigger lots, and the suburban lifestyle. If you own in these areas, your equity position is likely stronger than you think.
We recently helped a homeowner in Deerfield net $47,000 more than their initial estimate by doing strategic pre-sale renovations. That’s not a typo. Sometimes spending $15K on the right updates returns $50K+ at closing. It’s about knowing which improvements matter.
The Fix-N-List Approach
This is exactly why I created Fix-N-List. We don’t just list your home and hope for the best. We analyze the market data, identify which improvements will maximize your return, handle the construction work, and then list at the optimal price point.
It’s a data-driven approach, and the results speak for themselves. If you’re even thinking about selling in 2026, the time to start planning is now — not when you’re ready to list.
Bottom Line
The Chicago market is healthy. Prices are up, inventory is tight, and serious buyers are out there. Rates aren’t going back to 3%, but they don’t need to. If your home is priced right and shows well, you’re in a great position.
Want a no-BS market analysis for your specific property? Reach out to me directly. I’ll pull the comps, run the numbers, and tell you exactly where you stand — no sugarcoating.
— Tim Wangler | timwangler.com
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