Hopeful buyers poured into open houses across the North Side over the summer. Some real estate agents reported nearly 100 people touring their listings.
But Keller Williams One Chicago Realtor Tommy Choi had less than 30 people recently visit his listing in Lincoln Park, one of the city’s hottest real estate markets.
There were four offers on the townhome, though a few months ago he would’ve expected about 10. While the property sold for nearly $100,000 over its asking price, it would've likely commanded much higher in the summer — when the market was more competitive and prompted bidding wars across Chicago.
The housing market slows down in the fall, as children return to school and families prep for the upcoming holiday season. But it also means buyers — who've struggled for months to find a home in their budget — could score a discount.
A Redfin report found October is the best time for homebuyers to score a deal in Chicago, as well as 15 other major cities such as Boston, Philadelphia and Orlando. "The seasonal sweet spot represents the time when discounts off a home’s original asking price — through price cuts or negotiations — are typically near their highest," according to the September report.
“The sellers that are still struggling to get offers come October are going to be more willing to accept an offer below listing price or to lower the price themselves — or offer other sweeteners,” Redfin Chief Economist Daryl Fairweather said. “It's really because they want to get things done. They don't want to have this home sale hanging over their heads going into the holidays. As a buyer, that means that you're going to be having sellers that are more willing to negotiate with you than they would have been in summer or spring.”
October has historically offered better opportunities for homebuyers, data from Illinois Realtors shows. Between 2021 and 2025, Chicago's median sale price in October was lower compared to June, typically the peak buying month, averaging a 10% decline. The trade association found a similar trend with a home's days on market — the longer a home sits, the more willing sellers are to accept price cuts or toss in other conditions to close a sale.
Ezekiel Morris, managing broker of EXIT Strategy Realty/EMA Management, said affordability and a lack of inventory have been the defining themes of Chicago’s housing market this year. He primarily serves the South Side and has seen some buyers broaden their search from North Side neighborhoods to the south.
He sees more opportunities this fall for buyers, especially those who qualify for down payment assistance and similar programs that can boost their budget.
“There's deals at every level,” Morris said.
While October can be a period of relief for buyers, prices have been rising — even in October. And mortgage rates have also climbed.
Redfin data shows in October 2020, the median sale price for a home in the Chicago metro area was $275,000. That figure soared by about 33% to $366,500 in October 2025. When compared to the market's peak time, data shows the median sale price in June 2020 was $269,000 and jumped to $407,000 in June 2025 — a roughly 51% increase.
Fairweather said nationally, a record number of buyers have backed out of purchasing homes, and pending home sales have plunged as rising mortgage rates cause people to change their mind.
September saw pending home sales in the U.S. drop 4% from August and 8.6% year over year. It's also the first time in three years that pending home sales declined in all 50 of the most populous U.S. metro markets. Chicago declined 5.8% year over year and the share of deals under contract that fell through was 14.1%, Redfin said.
Tracking pending home sales can give real-time insight into the housing market and quickly reflect the impact of rising mortgage rates on consumers.
The average rate on a 30-year fixed-rate mortgage was 7.40%, the same as last week, Freddie Mac said Thursday. One year ago, the average rate was 6.27%.
“Chicago is kind of different from the national market because there aren't enough sellers … and there are more buyers in Chicago compared to other parts of the country,” Fairweather said. “But even so, October is the best time to negotiate because those sellers that haven't sold yet are going to be willing to lower their price. But the high mortgage rates have just priced out a lot of people who just can't work it under these higher mortgage rates. So if you're still in the market right now, then you really aren't facing much buyer competition at all — and the sellers are willing to work with you.”
Dan Gjeldum, executive vice president of mortgage lending at CrossCountry Mortgage, thinks interest rates have been increasing faster than normal this year. He said it’s partly due to the war in Iran, which is impacting everything from inflation to oil prices.
“Inflation's the arch enemy of mortgage rates, or interest rates in general,” he said.
Mortgage rate increases have reset the expectations of many buyers, Gjeldum said. CrossCountry has also seen fewer prospective clients than usual, and Gjeldum has been reaching out to pre-approved clients to discuss how the rate changes may impact their monthly mortgage payment.
“It gets quieter as we move into [the end of the year]. But with the interest rate changes, some people have definitely paused,” he said. “I think once people accept rates are up and they get comfortable with that, then it will pick right back up. Our timing right now is definitely a lull.”
But experts and real estate agents said it’s still possible to get a good deal. That’s because even with higher mortgage rates, it may still be a better value to buy in the fall as prices are higher during the spring and summer buying season, Choi said. It's also hard to predict if, and by how much, rates will fall next year.
“That's the conversation that I'm having with buyers that are serious and active right now, and those are the buyers that are going to win,” Choi said.
Gjeldum said the end of the year can be full of opportunities — it’s always when he’s bought new property — but it depends on a buyer's financial situation.
“Talk to your mortgage professional, get an idea of what your payments are going to be and if you have to adjust your budget, you have to adjust your budget," he said.
