Illinois Home Sales Continue to Post Gains, Up 32.8 Percent in March Median Price Holds Steady at $148,500

SPRINGFIELD, IL – April 22, 2010 – (RealEstateRama) — The Illinois housing market posted its seventh consecutive month of year-over-year home sales increases in March as the spring market heats up and the April 30 federal homebuyer tax credit deadline nears. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in March 2010 were up 32.8 percent, totaling 9,487 homes sold compared to March 2009 sales of 7,142 homes. The median price in March 2010 was $148,500, down 0.3 percent from $149,000 in March 2009. The median is a typical market price where half the homes sold for more, half sold for less.

Year-to-date January through March 2010, Illinois home sales were up 23.5 percent to 21,242 homes sold compared to 17,194 homes sold for the same period in 2009. The year-to-date median price was $144,600, off 0.3 percent from $145,000 in 2009.

“Statewide and in the Chicagoland region we’ve seen double-digit sales increases for the past six months spurred largely by the tax credit and the strong buyer-market conditions, and the forecast for the next three months indicates this trend should continue,” said REALTOR® Mike Onorato, GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real Estate in Coal City. “Strong sales are working off housing inventories and helping to stabilize the market, although the number of foreclosures remains a concern as these distressed properties continue to affect prices. The declines in median home prices have moderated significantly from last year signaling a regain of consumer confidence about home purchases.”

Adds Onorato: “A window of time remains to get a homebuyer tax credit. Qualifying buyers must sign a contract to purchase a primary residence by April 30 but have until June 30 to close the transaction.”

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), year-over-year home sales were positive for the ninth consecutive month, up 45.4 percent to 6,310 homes sold (single-family and condominiums) in March 2010 compared to 4,339 homes sold in March 2009. The median home sale price for the Chicagoland PMSA was $184,000 in March 2010, down 4.6 percent from $192,900 in March 2009.

Year-to-date January through March 2010, Chicagoland PMSA home sales were up 36.7 percent to 14,365 homes sold compared to 10,507 homes sold January through March 2009. The year-to-date median price was $175,500, down 6.4 percent from $187,500 in 2009.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.03 percent in March 2010, up slightly from 5.01 percent during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in March it averaged 5.15 percent.

“The significant increase in sales in both Chicago and Illinois for the first quarter of 2010 and the forecasts for a continuation of this trend through the next quarter offer some evidence of an upward trend,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Forecasts for the second quarter of 2010 suggest a modest rise in median prices in absolute terms, although the levels remain 1 to 3 percent lower in Illinois and 7 to 9 percent lower in Chicago than prices recorded a year ago.”

Adds Hewings: “There is increasing evidence that the housing market is stabilizing; in many parts of the country sales have increased but prices remain stubborn. In places where there have been increases, they are modest; there is no doubt that the downward pressure on prices can be traced to the volume of distressed properties on the market.”

In the city of Chicago, March total home sales (single-family and condominiums) were up 49.7 percent to 1,814 sales compared to 1,212 homes sold in March 2009, the seventh consecutive month of year-over-year sales gains. The city of Chicago median price in March 2010 was $209,000 down 4.6 percent compared to $219,000 a year ago in March 2009.

Year-to-date January through March 2010, home sales in the city of Chicago were up 41.6 percent to 4,241 homes sold compared to 2,995 homes sold for the same period in 2009. The year-to-date median price was $196,000, down 8.8 percent from $215,000 in 2009.

“The market has shown great resilience as homebuyers take advantage of the tax credit in its final weeks. We are seeing move-up and first-time buyers seeking the opportunities of the Chicago market,” said REALTOR® Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey GMAC, Chicago. “We will be, however, watching the coming months closely as interest rates rise and their impact on current lending programs available for qualified homebuyers as well as those specifically looking to secure a jumbo loan.”

According to the IAR report, total home sales (single-family and condominiums) comparing March 2010 to the same month in 2009 were up in 54 of 99 Illinois counties reporting including Cook, up 50.8 percent; DuPage, up 51.8 percent; Grundy, up 19.4 percent; Kane, up 72.5 percent; Lake, up 39.1 percent; McLean, up 32.4 percent; Peoria, up 26.2 percent; Rock Island, up 25.3 percent; Saint Clair, up 19.6 percent; Sangamon, up 1.5 percent; Tazewell, up 55.6 percent; and Will, up 31.6 percent.

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. 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 50,000 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 that safeguards and advances the interest of real property ownership.

Find Illinois market stats data at www.illinoisrealtor.org, click on Market Stats.

Contact:
Mary Schaefer/Ann Londrigan
217-529-2600