February shows signs of spring rebound in housing market in Chicago

February showed some promising signs in the U.S. housing market as more homes were sold compared to the same time last year. The appealing Zillow February 2026 Market Report indicates a possible thawing in the market as we transition into spring. Chicago, a significant player in this market, managed to maintain stable home prices with a notable year-over-year increase. Despite a slight slump in sales and inventory, the housing market in Chicago is holding a balanced competition.

According to Zillow, the average home value in Chicago stands at $340,834, demonstrating a 4.2% rise in year-over-year price changes. The inventory change saw a minimal decrease at -4.4%, along with a 6.5% drop in sales. The typical rent rate in the region is $2,132, showing a 0.9% rise month over month and a 5.5% increase year over year.

Nationwide, there was an overall uplift in home values for the first time in seven months, with the Zillow Home Value Index (ZHVI) advancing by 0.1% month over month and 0.4% year over year. On the other hand, existing home sales witnessed a 1.8% rise year over year. This improvement in affordability led to a 7.7% decline in typical monthly mortgage payments from a year ago, giving median households approximately $30,000 extra in purchasing power. The total active inventory saw a growth of 5% year over year, providing buyers with expanded choices in a market that has been quite constricted over the last three years. These trends have positioned the typical U.S. home value at $361,371.
In February, the national market saw about 1.2 million available homes, leading to 239,910 homes being sold, marking an increase of 1.8% from the previous year and a significant 13% rise from January. The average time for homes to go pending stood at 28 days, four days longer than last year but 19 days shorter than January.

Mischa Fisher, the chief economist at Zillow, commented on these promising developments. Fisher noted that the latest data from Zillow revealed a resurgence in the confidence of both buyers and sellers. An impressive growth in existing home sales compared to the previous year has sparked optimism that the housing market is slowly transitioning towards a more favorable trajectory after stagnating for three years. Furthermore, lower mortgage rates amid these positive conditions are anticipated to prompt more homeowners to sell, providing them with better financial flexibility for their next home purchase. Lower rates coupled with these favorable market conditions should motivate more sellers and buyers to engage in real estate transactions.