Pending Home Sales Declined in January
U.S. pending home sales decreased by 0.8% in January compared to the previous month, according to the National Association of REALTORS®. On a year-over-year basis, sales of homes under contract were down 0.4%. The report provides a forward-looking indicator of housing market activity.
- While pending sales saw a slight national dip, the Midwest region recorded a 5.0% increase in contract activity month-over-month in January. However, on a year-over-year basis, pending sales in the Midwest were down. - In Chicago specifically, 1,019 properties were sold in January 2026, representing a 21.2% decrease from the previous year. The median sales price in the city saw a slight year-over-year decrease of 0.9% to $345,000. - The city's housing inventory is significantly tighter than last year, with 3,078 homes for sale in January 2026, a 24.9% drop from January 2025. This has resulted in a 1.7-month supply of inventory, a 22.7% decrease from the previous year. - For small multifamily properties (2-4 units) in Chicago, the median sales price in January 2026 was $475,000, a notable 25.3% increase from January 2025, even as the number of properties sold decreased by 4.1%. - Chicago's multifamily market is expected to see modest rent growth of 0.5% in 2026, with the average effective rent reaching $2,300 per month by year-end. A key factor is the low pipeline of new apartments, with fewer than 4,000 new units expected to be delivered, the lowest number since 2012. - Investment firms are actively hiring for real estate roles in Chicago, with positions like "Investment Analyst" and "Acquisitions Analyst" frequently listed. Experience in financial analysis, real estate finance, and property valuation are commonly required skills. - For those looking to network and learn, several real estate investor events are scheduled in the Chicago area, including the "February Real Estate Networking Night" hosted by the Chicago Area Real Estate Investors Association. - A significant tax law change for 2026 that could impact real estate investors is the potential return of 100% bonus depreciation, which allows for accelerated depreciation on certain assets. This can create substantial tax offsets, particularly for those utilizing cost segregation studies.
