The latest S&P CoreLogic Case-Shiller report shows that home prices increased 6.3 percent in December 2017 compared to the previous year. Chicago home prices had the smallest gain in home prices (2.6 percent) of the 20 metro areas covered in the report.

“Pending sales of existing homes are roughly flat over the last several months. New home sales appear to be following the same trend as existing home sales. While the price increases do not suggest any weakening of demand, mortgage rates rose from 4% to 4.4% since the start of the year. It is too early to tell if the housing recovery is slowing. If it is, some moderation in price gains could be seen later this year,” said David M. Blitzer, managing director and chairman of the S&P Dow Jones Indices Index Committee, according to the report. 

With modest gains in home prices at the end of the year, what will the housing market look like in Chicago and its suburbs?

Crain’s Chicago Business forecasts that the growth of home prices in Chicago in 2018 will slow compared to last year. The same article speculates that the number of houses left on the market means many sellers will be willing to drop their asking prices, while educated buyers will continue to use the online information to prepare for price negotiations.

While Chicago’s spring housing market may not be set for as big of a boom as other cities, it is far from stagnant. Growth may not be happening rapidly, but it is happening. Suburban homebuilders are bullish on the spring market, according to the Daily Herald.

"We've had very qualified homebuyers who have done their homework and know what they want. They're ready to buy. Interest rates are good, and it's a bit of a boom right now,” said Anna Shodeen, director of marketing for Shodeen Homes, according to the report. 

Growth in the suburban market is pushing out into counties like Kane, Kendall, and McHenry because buyers can find lower price points there. 

The luxury market continues to show no signs of fading in Chicago. The Coldwell Banker Luxury in Review 2017 report ranked Chicago, Naperville, and Elgin No. 9 on the top locations for the ultra-wealthy. In 2017, the median inventory list price of a single-family home in the top five percent of Chicago was $1,799,500, while the median inventory list price of a condo in the top five percent of Chicago was $1,549,500. A total of 467 single-family homes in the top five percent bracket were sold in 2017. A total of 64 condos in the same category were sold last year. 

Chicago’s spring housing market seems like it will have slow but steady growth. The suburbs and the city’s luxury market could be standout areas for that growth.