The McHenry, Illinois real estate market gained momentum in July 2026. Total listings increased 9% month over month, new listings jumped 21%, and pending listings rose 14%. At the same time, months' supply declined 14%, showing that buyers are absorbing new inventory even as more homes come onto the market.
If you're buying or selling a home in McHenry, those numbers tell an important story.
More homeowners are putting properties on the market, giving buyers additional choices. But buyer activity is increasing at the same time, preventing available supply from building as quickly as the increase in new listings might suggest.
Jim Starwalt, Broker Owner and Team Leader of The Star Home Team at Better Homes and Gardens Real Estate Star Homes, breaks down the latest McHenry-area numbers in our August 2026 market update.
Click Here for Our McHenry Market Update Video
McHenry IL Housing Market at a Glance
According to the McHenry-area market data reviewed by Jim Starwalt for July 2026:
Total listings increased 9% month over month
New listings increased 21%
Pending listings increased 14%
Months' supply of homes for sale decreased 14%
36 homes had price reductions
Median listing price was $195 per square foot
Taken together, these numbers show an active market with movement on both the buyer and seller sides.
More homes are being listed, but buyers are also putting more homes under contract.
That distinction matters.
If listings were increasing while pending sales were declining, it could point toward inventory accumulating and the market shifting more decisively toward buyers. Instead, July's McHenry numbers show new inventory entering the market while pending activity also increased.
Why Is the 21% Increase in New Listings Important?
For buyers, one of the most encouraging numbers in the July report is the 21% month-over-month increase in new listings.
More new listings can mean more opportunities to find a home that fits a buyer's preferred location, price range, property type and condition.
McHenry offers a particularly diverse mix of housing, including single-family homes, townhomes, condominiums, newer construction, established neighborhoods and waterfront properties.
Buyers who are just beginning to explore the community can learn more in our McHenry housing guide.
However, an increase in listings does not automatically mean buyers have gained the upper hand.
That's where the pending-sales number becomes important.
Pending Home Sales Increased 14%
Pending listings increased 14% month over month in July.
A pending home is generally one where a seller has accepted an offer and the transaction is moving toward closing.
An increase in pending activity suggests buyers are actively purchasing homes as new properties reach the market.
For sellers, this is an encouraging signal because it demonstrates that buyers haven't simply gained more choices. They're acting on those choices.
For buyers, it reinforces the importance of being prepared.
A buyer who has financing in place, understands their preferred neighborhoods and knows their priorities may be in a better position to respond when an appealing property becomes available.
Why Did Housing Supply Decline When Listings Increased?
This may be the most interesting part of McHenry's July market update.
Total listings increased 9%.
New listings increased 21%.
Yet months' supply decreased 14%.
How can all three happen at the same time?
Because inventory isn't determined only by how many homes come onto the market. It is also affected by how quickly buyers absorb those homes.
With pending listings increasing 14%, buyers were actively putting properties under contract.
In simple terms, more homes came onto the McHenry market, but buyer activity increased enough that months' supply still declined.
This is a good example of why one housing statistic rarely tells the entire story.
What Do 36 Price Reductions Tell Us?
Another important number from July is that 36 McHenry-area homes had price reductions.
That doesn't mean the entire market is declining.
Instead, it is a reminder that pricing matters.
Today's buyers have immediate access to competing listings, property photos, previous sale information, price changes and other market information.
Even in an active market, buyers may hesitate when they believe a home is priced above comparable properties.
For sellers, the first few weeks after listing can be particularly important. A home typically receives significant online exposure when it first enters the market, which makes the initial pricing strategy an important part of the overall marketing plan.
A seller who starts substantially above what current buyers are willing to pay may eventually need to reduce the price.
The better approach is to evaluate recent comparable sales, current competition, property condition, location and buyer activity before establishing the listing price.
What Does $195 Per Square Foot Mean?
The July McHenry-area snapshot showed a median listing price of $195 per square foot.
Price per square foot can provide useful context when comparing market activity, but it should not be used by itself to determine what an individual home is worth.
Two McHenry homes with the same square footage can have very different market values because of differences in:
Neighborhood
Lot size
Age
Condition
Renovations and updates
Finished basement space
Garage configuration
Waterfront or water access
Property type
Location within a neighborhood
That's especially relevant in McHenry, where the housing stock varies considerably.
Our McHenry neighborhood guide can help buyers and homeowners understand some of the different residential areas and housing options found throughout the community.
Is McHenry Becoming a Buyer's Market?
July's numbers alone do not support making that conclusion.
Buyers received more choices as new listings increased 21%, which is positive for anyone searching for a home.
But pending listings increased 14%, and months' supply declined 14%.
That combination suggests buyer demand is still absorbing available inventory.
The presence of 36 price reductions also tells us buyers remain price-sensitive.
The result is a market that requires strategy on both sides.
Buyers may have more opportunities than they did when fewer homes were available, but desirable, properly priced homes can still attract serious interest.
Sellers may continue to benefit from active demand, but they cannot assume every home will sell quickly regardless of price or condition.
How Does McHenry Compare With the Broader Chicago-Area Market?
McHenry's July numbers fit into a broader Northern Illinois market where limited inventory continues to be an important factor.
Illinois REALTORS® reported that across the Chicago Metro area in June 2026, inventory of homes for sale was 14.4% lower than one year earlier. Closed sales increased 3.9% year over year, while the median sales price increased 4.6% to $407,000.
The Chicago Metro report includes McHenry County along with Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake and Will counties.
Regional numbers shouldn't be substituted for McHenry-specific statistics, but they provide useful context.
We recently examined this broader trend in our Chicago and Milwaukee housing market update, including why national housing headlines don't always reflect what is happening locally.
What Does the July Market Mean for McHenry Home Buyers?
The 21% increase in new listings is welcome news for buyers because it means more properties are entering the market.
But the 14% increase in pending activity means buyers should not mistake greater selection for an absence of competition.
If you're planning to buy in McHenry:
Understand your budget before seriously shopping
Have financing arrangements in place
Identify your preferred areas and property types
Watch new listings closely
Compare the home with recent nearby sales
Consider the complete cost of ownership
Be prepared to make a decision when the right property appears
Buyers relocating to the area may also want to explore our guide to the cost of living in McHenry.
What Does the July Market Mean for McHenry Home Sellers?
For sellers, July provides several encouraging signs.
Listings are increasing, but so are pending sales. Meanwhile, months' supply declined.
That indicates there are still active buyers in the market.
However, the 36 price reductions are an important reminder that sellers are competing with other available homes.
Before listing, consider:
What recently sold nearby
Which homes you're competing against right now
Your home's condition
Updates or repairs that may affect buyer perception
Professional photography and online presentation
Your initial asking price
Your timeline for moving
What you'll do after your home sells
For additional regional context, see our Lake County and McHenry County housing market update.
The Star Home Team's Perspective
What stands out most to us in the July McHenry numbers is the relationship between new listings, pending activity and supply.
A 21% increase in new listings could sound like the market is suddenly filling with inventory.
But that's not what the rest of the data shows.
Pending listings increased 14%, while months' supply actually declined 14%.
That tells us buyers are still active.
At the same time, 36 price reductions show that buyers are paying attention to value.
For sellers, pricing and presentation remain important.
For buyers, preparation remains important.
And for both, neighborhood-level and property-specific information matters much more than a national headline.
Frequently Asked Questions About the McHenry IL Real Estate Market
What's happening in the McHenry housing market?
McHenry experienced increased activity in July 2026. Total listings increased 9% month over month, new listings increased 21% and pending listings increased 14%. At the same time, months' supply declined 14%, indicating that buyer activity was absorbing available inventory.
Are more homes coming onto the market in McHenry?
Yes. New McHenry-area listings increased 21% month over month in July 2026, while total listings increased 9%. That gives buyers more properties to consider, although pending activity increased at the same time.
Are buyers still purchasing homes in McHenry?
Yes. Pending listings increased 14% month over month in July. That is an important indicator because it shows that buyer activity increased alongside the number of homes entering the market.
Are McHenry home prices dropping?
The July data does not establish that McHenry home values overall are declining. There were 36 homes with price reductions, which shows that some sellers adjusted their asking prices. Individual home values depend on location, condition, property type, recent comparable sales and current competition.
What is the median listing price per square foot in McHenry?
The July 2026 McHenry-area market snapshot showed a median listing price of $195 per square foot. Price per square foot can provide useful context, but it should not be used alone to estimate an individual property's market value.
Is McHenry currently a buyer's market?
July's data does not indicate a simple shift to a buyer's market. New listings increased substantially, but pending listings also increased and months' supply declined. Conditions can also vary significantly by neighborhood, price range and property type.
Is now a good time to sell a home in McHenry?
There continues to be active buyer demand in McHenry, but whether now is the right time to sell depends on your property, financial situation, moving plans and goals. Sellers should evaluate recent comparable sales and current competing listings before deciding on a strategy.
How can I find out what my McHenry home is worth?
The most useful starting point is a property-specific market analysis using recent comparable sales, current competing listings, location, condition, updates and current buyer activity. Citywide averages and price-per-square-foot figures provide context but cannot account for the characteristics of an individual home.
Thinking About Buying or Selling in McHenry?
McHenry's July numbers show why local market data matters.
More homes are coming onto the market. More homes are also going under contract. Inventory remains important, and buyers are demonstrating that price matters.
If you're considering buying or selling in McHenry, The Star Home Team can help you look beyond the headline numbers and understand what's happening in your specific neighborhood and price range.
About the Author
Susan Starwalt is the Broker Owner of Better Homes and Gardens Real Estate Star Homes and The Star Home Team, serving Northern Illinois and Southern Wisconsin. Licensed since 1998, Susan works alongside Jim Starwalt and the company's management team to support one of the region's top-producing real estate organizations.
The Star Home Team has helped more than 3,000 families buy and sell homes and is recognized as one of Illinois' leading real estate teams. The team serves buyers and sellers throughout Lake County, McHenry County, Kenosha County, and surrounding communities, providing expert guidance, local market knowledge, innovative marketing, and personalized service.
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