Are Home Prices Rising or Falling in Northbrook, IL?

Home prices in Northbrook, a city near Chicago, IL, are rising quickly. The median sale price jumped to $809,464 in the 3 months ending August 2026, a 11.7% increase over the prior year. Here's a look at what's behind the numbers and what it means for you.

The National Picture

In the three months ending August 2026, the U.S. median sale price stands at ~$399K, up 2% year over year. The typical household earns about $88,000 and directs roughly 34.4% of that toward housing, an improvement of 1.6 points from a year ago. Nationally, about 4 months of supply and 20% of listings with price cuts point to a market that's softening in some places but still growing overall.

Home Prices in the Chicago Area

Across the Chicago metro, the typical household earns roughly $99,000 and spends about 35.1% on housing. At ~$809K, Northbrook's median is more than double the metro's typical price point, placing it firmly in the upper tier. Buyers here generally need incomes well above the metro median or substantial equity from a prior sale.

Buyers Are Paying Premiums in Northbrook

Northbrook's 11.7% price gain is among the largest in the Chicago area. Nearly 59% of homes sold above list price, and the sale-to-list ratio of 103.4% confirms that buyers regularly pay premiums. The median home spent 43 days on market, 3 days less than a year ago.

Among nearby areas, Arlington Heights (~$497K) saw more moderate growth at 4.7%. Schaumburg's median of ~$373K rose 9.6%, and the Northbrook neighborhood within the city posted a 4.5% gain to ~$742K. Palatine (~$395K) and Orland Park (~$387K) grew more slowly, making Northbrook the clear standout for price appreciation.

Why Are Prices Rising in Northbrook?

Shrinking inventory is fueling the price surge. Active listings dropped nearly 12% while new listings barely grew, leaving buyers with fewer choices. At 1.9 months of supply, the market is tight. Pending sales did fall about 7%, but not enough to offset the inventory squeeze. With limited homes available and strong buyer willingness to bid above asking, prices have climbed sharply.

Nearby Neighborhoods

Limited to neighborhoods with at least 10 home sales in the period.

All data comes from Redfin and represents a three-month rolling average ending August 2026. This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. Check the Redfin Data Center for additional in-depth housing market data.