SPRINGFIELD, IL – August 21, 2013 – (RealEstateRama) — Illinois home sales surged 28.5 percent over previous-year levels in July and median prices increased 14.2 percent, according to the Illinois Association of REALTORS®, providing evidence of a strong summer housing market.
Statewide home sales (including single-family homes and condominiums) in July 2013 totaled 16,012 homes sold, up from 12,461 in July 2012. Illinois total home sales are the highest since August 2006.
The statewide median price in July was $169,000, up 14.2 percent from July 2012 when the median price was $148,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Slight increases in interest rates over the past few months have done little to slow interest in homeownership,” said Michael D. Oldenettel, CRS, GRI, president of the Illinois Association of REALTORS® and Managing Broker/Owner with RE/MAX Results Plus in Jacksonville, Ill. “Buyers are clearly comfortable enough with the way the economy is progressing to make a big purchase, and sellers are getting off the sidelines as they see prices begin to erase losses sustained during the recession.”
The inventory of homes for sale in July was 67,466 units, a 24.7 percent decrease from last year’s 89,548 homes. The time it takes to sell a home decreased to 73 days on average in July, down 23.2 percent from 95 days in July 2012.
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.35 percent in July 2013, up from 4.09 percent during the previous month, according to the Federal Home Loan Mortgage Corp. Last July it averaged 3.54 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in July 2013 totaled 11,897 homes sold, up 36.1 percent from July 2012 sales of 8,744 homes.
The median price in July 2013 was $201,075 in the Chicago PMSA, up 18.3 percent from $170,000 in July 2012. The time it took to sell a home dropped substantially in July with listings averaging 61 days until sale, a 26.5 percent drop compared to 83 days in July 2012.
“While both prices and sales continue to point to a sustained housing market recovery,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois, “the inventory of homes for sale remains at low levels. The number of foreclosed properties may have deterred many potential sellers from listing their homes. Recent analysis suggests that the level of foreclosed properties may return to pre-recession levels by the end of the year and thus providing some incentive for additional listings.”
Sixty-one (61) of 102 Illinois counties reporting to IAR showed year-over-year home sales increases in July 2013. Forty-nine (49) counties showed year-over-year median price increases including Kane, up 20 percent to $174,000; Macon, up 18.2 percent to $104,000; Lake, up 15.2 percent to $220,000; DuPage, up 9.2 percent to $240,205; Champaign, up 6.9 percent to $145,900; and LaSalle, up 4 percent to $105,000.
The city of Chicago saw a 31.1 percent year-over-year home sales increase in July 2013 with 2,838 sales, up from 2,164 in July 2012.
The median price of a home in the city of Chicago in July 2013 was $250,000 up 25 percent compared to July 2012 when it was $200,000. Chicago condo prices also saw double-digit gains for the month, posting a 13.8 percent jump to $280,000. Average time on market in the city was 48 days, down 30.4 percent compared to 69 days last July.
“The market is starting to come together, especially in the condo arena that was hard-hit across most areas of the city. That condos are moving at a strong pace now and prices are also increasing means that both buyers and sellers are feeling confident,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “As the availability of inventory continues to decrease, we hope to see buyers look into some of the areas that aren’t performing as well, as an alternative.”
Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Aug. 7, 2013 for the period July 1 through July 31, 2013. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
The Illinois Association of REALTORS® is a voluntary trade association whose 41,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats.
MEDIA ONLY: Economist Dr. Geoffrey J.D. Hewings will be available for media interviews between 9 a.m. and noon CST on Aug. 21.
Contact: Stephanie Sievers, 217-529-2600