Illinois Third Quarter Home Sales a Bright Spot in 2009 Statewide Median Price at $165,000

SPRINGFIELD, IL – November 9, 2009 – (RealEstateRama) — The first-time buyer tax credit built third-quarter momentum as home sales marked the first positive year-over-year increase in more than three years while price declines moderated but continued to be influenced by entry-level and distressed sales, according to the Illinois Association of REALTORS® (IAR). Statewide home sales (which include single-family and condominiums) totaled 32,460, up 0.3 percent from 32,358 home sales in the third quarter of 2008. The third quarter median home sale price was $165,000, down 12.9 percent from $189,500 in the third quarter of 2008. The median is a typical market price where half the homes sold for more, half sold for less.

“Illinois’ strong third quarter home sales data is a compelling indicator for the importance of the extension and expansion of the federal homebuyer tax credit,” said REALTOR® Mike Onorato, president of the Illinois Association of REALTORS®. “This stimulus measure has proven it works and the impact goes beyond the sale of a home. The home sale transaction spurs an economic boost for moving and storage companies, the home improvement industry, inspection and legal services.”

Adds Onorato, broker-owner of Onorato Real Estate in Coal City: “Illinois REALTORS® commend Congress and President Obama for extending and expanding the tax credit to keep the momentum going in the housing market. This is a positive step toward a housing market and economic recovery.”

The third-quarter commitment rate for a 30-year, fixed-rate mortgage for the North Central Region averaged 5.28 percent, according to data from the Federal Home Loan Mortgage Corporation. It was up from 5.07 percent in the second quarter of 2009 and down from 6.44 percent in the third quarter of 2008.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), home sales (including single-family and condominiums) totaled 21,298, up 2.4 percent from 20,802 home sales in the third quarter of 2008. The Chicagoland PMSA third quarter median home sale price was $205,000, down 16.3 percent from $244,900 in the third quarter of 2008. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

“Having entered the recession some three to six months after the United States, the Illinois economy has proceeded to shed jobs at a faster rate than the nation over the last 12 months (5.17 percent decline as opposed to 4.23 percent nationally),” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Illinois is now in its ninth year of recovery toward its prior employment peak of November 2000 with little prospect that this will be attained in the next six years. The economy continues to exhibit signs that the recovery from recession will be a jobless one.”

In the city of Chicago home sales (including single-family and condominiums) totaled 5,821 in the third quarter, down 4.8 percent from 6,117 home sales in the third quarter of 2008. The third quarter median home sale price was $230,000, down 20.7 percent from $290,000 in the third quarter of 2008.

“The Chicago housing market continues to see buyers investing in distressed properties, which continue to be absorbed, with an increase of 22.2 percent in the number of single-family homes sold third quarter 2009 over the same period in 2008,” said Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey GMAC, Chicago. “There are great deals on the market for buyers across the board, however, the expanded and extended homebuyer tax credit will be critical to helping move buyers off the fence and into homes in the city of Chicago.”

According to the IAR report, home sales comparing the third quarter of 2009 to the same period in 2008 were up in 47 of 100 Illinois counties reporting including Adams, up 11.1 percent; Boone, up 14.6 percent; Champaign, up 6.6 percent; Cook, up 4.0 percent; DuPage, up 3.6 percent; Kankakee, up 3.6 percent; Lake, up 2.9 percent; Sangamon, up 10.6 percent; and Will, up 0.9 percent.

Median home sale prices were up in 37 of 100 counties reporting comparing the third quarter of 2009 to the same period in 2008, including Knox, up 2.9 percent to $68,950; Logan, up 2.6 percent to $79,900; McDonough, up 15.7 percent to $94,000; Peoria, up 7.2 percent to $127,000; Rock Island, up 3.8 percent to $96,500; Sangamon, up 3.3 percent to $119,300; and Vermilion, up 2.4 percent to $65,000.

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 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.

Detailed third quarter 2009 home sales statistics reports are available from www.illinoisrealtor.org, click on Market Stats.

Contact:
Ann Londrigan
217-529-2600