Illinois Home Sales in December Up 11.1% from Previous Month Sales and Price Declines Moderating

SPRINGFIELD, IL – January 20, 2011 – (RealEstateRama) — Illinois winds down 2010 with a significant boost in December home sales compared to the prior two months while post-recession price and sales declines have moderated in Illinois yet remain constrained from tighter lending, slow economic recovery and distressed properties. According to the Illinois Association of REALTORS® latest report, statewide total home sales (single family and condominiums) in December totaled 7,682 sales, up 11.1 percent from 6,915 sales in the previous month of November; year-over-year sales were down 7.3 percent from 8,288 sales in December 2009. The statewide median price was $140,000 down 7.9 percent from $152,000 in December 2009. The median is a typical market price where half the homes sold for more, half sold for less.

For the year, Illinois home sales totaled 103,710 down 3.8 percent from 107,782 sales in 2009. The year-end statewide median price for 2010 was $152,000, down 3.2 percent from $157,000 in 2009.

“The gains in home sales made in December is encouraging given the time of year, and buyers can expect affordability conditions to remain high in early 2011 with mortgage interest rates still low,” said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS® and the Development and Operations Coordinator for Traders Realty in Peoria. “In 2010 we saw significant demand from first-time buyers and we look for the spring market to release some of the pent-up demand from many who’ve put their move-up or relocation plans on hold during the recession.”

Adds Whitehurst: “Foreclosures are expected to remain a challenge in the marketplace and we look for leadership from the lending community to expedite the short sale process and create a more workable lending environment for qualified buyers.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.80 percent in December 2010, up from 4.30 percent the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in December it averaged 5.04 percent.

For the year, total home sales (single family and condominiums) in the Chicagoland Primary Metropolitan Statistical Area (PMSA) were off slightly (-0.5 percent) with 69,010 sales compared to 69,367 sales in 2009. The year-end median price for the region was $185,000 in 2010, down 5.6 percent from $196,000 in 2009.

December home sales (single family and condominiums) for the Chicagoland PMSA totaled 5,204 sales, up 15.2 percent from 4,518 sales in the previous month of November; year-over-year sales were down 9.9 percent from 5,779 homes sold in December 2009. The median home sale price was $167,850 in December 2010, down 7.8 percent from $182,000 in December 2009.

“The recent income and corporate tax increases passed by the Illinois state legislature provide further complications for those trying to analyze the interaction between the economy and the housing market,” said economist Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “If workers and businesses are convinced that these actions will go some way to solving part of the state’s fiscal crises, then the outcome may be positive. The tax increases have also created some uncertainty about how these actions might affect Illinois’ economic recovery vis-à-vis surrounding states.”

Adds Hewings: “The picture is further complicated by the temporary upsurge in housing sales in the first quarter of 2010 that was fueled by the incentives to new and existing home owners; these increases set the stage for an expected dampening in the annual sales growth data for 2011 for the first quarter.”

December home sales (single family and condominiums) for the city of Chicago totaled 1,444 sales, up 26.2 percent from 1,144 sales in the previous month of November; year-over-year sales were down 18.3 percent from 1,767 homes sold in December 2009. For the year, home sales are down 1.6 percent with 19,089 sales in 2010 compared to 19,398 sales for 2009.

The city of Chicago median price in December 2010 was $199,250 down 5.1 percent compared to $210,000 a year ago in December 2009. The year-to-date median sales price for the city of Chicago is down 8.0 percent to $207,000 from $225,000 in 2009.

“December closed a year in the city of Chicago with just 1.6 percent fewer units sold in 2010 over 2009. Buyers are finding value and opportunities in the marketplace and making long-term investments in real estate due to compelling pricing and low interest rates. The median price for the city of Chicago in 2010 was $207,000, down from $225,000 the previous year, reflecting the influence of distressed properties in communities across Chicago,” said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Envision Real Estate LLC, Chicago. “In 2011, REALTORS® will continue to lead the conversation regarding FHA and creative condo financing, loan limits and reasonable loosening of credit for qualified buyers.”

More than half of Illinois counties reporting (52 of 100 counties) showed year-over-year home sales increases or no change for the month of December. Forty-four counties reported median prices increases or no change compared to December 2009 including Lake, up 3.7 percent to $194,440; Macoupin, up 8.8 percent to $78,900; McLean up 8.2 percent to $169,125; Peoria, up 6.6 percent to $122,000; Saint Clair, up 22.2 percent to $108,750; Will, up 4.2 percent to $172,000; and Winnebago, up 2.5 percent to $105,000.

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 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 46,000 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/marketstats.

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