Strong buyer demand, lower inventory push Illinois home prices higher in September

SPRINGFIELD, Ill. – (RealEstateRama) — Homes sold quickly and at higher median prices in September, even as statewide home sales dipped slightly amid lower than normal housing inventory levels, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in September 2017 totaled 13,657 homes sold, down 4.0 percent from 14,223 in September 2016.

The statewide median price in September was $192,500, up 6.9 percent from September 2016, when the median price was $180,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Sellers are definitely reaping the benefits of a market which in many areas continues to be dogged by tight inventories,” said Illinois REALTORS® President Matt Difanis, ABR, CIPS, GRI of Mahomet, co-owner of RE/MAX Realty Associates in Champaign. “Although the summer selling season is drawing to a close, interest on the part of many buyers does not seem to be waning as evidenced by the short time on average it is taking to complete a purchase.”

The time it took to sell a home in September averaged 51 days, down from 58 days a year ago. Available housing inventory totaled 60,669 homes for sale, a 10.5 percent decline from September 2016 when there were 67,796 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.81 percent in September 2017, a decrease from 3.88 percent the previous month, according to the Federal Home Loan Mortgage Corp. In September 2016, it averaged 3.46 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in September 2017 totaled 9,634 homes sold, down 4.6 percent from September 2016 sales of 10,095 homes. The median price in September 2017 was $230,000 in the Chicago PMSA, an increase of 5.7 percent from $217,500 in September 2016.

“Housing inventory continues to dampen sales,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “This problem is reflected in the significant increases in the sales prices of foreclosed properties, increasing by over 15 percent compared to 5 percent for regular sales.”

According to the data, thirty (30) Illinois counties reported sales gains for September 2017 over previous-year numbers, including Kendall County, up 11.4 percent with 245 units sold; Peoria County, up 7.3 percent with 221 units sold; Sangamon County, up 3.9 percent with 267 units sold; and Champaign County, up 3.2 percent with 196 units sold. Sixty-three (63) counties showed year-over-year median price increases including Rock Island County, up 22.4 percent to $112,000; DuPage County, up 10.0 percent to $265,000; and Cook County, up 6.3 percent to $238,000.

The city of Chicago saw a 3.7 percent year-over-year home sales decline in September 2017 with 2,309 sales, down from 2,398 in September 2016. The median price of a home in the city of Chicago in September 2017 was $275,000, up 5.8 percent compared to September 2016 when it was $260,000.

“Although the market has slowed somewhat from peak summer activity, it continues to push forward, with decreases in overall inventory and market time reflecting continued interest in investing in a home,” said Rebecca Thomson, president of the Chicago Association of REALTORS® and Vice President of Agent Development at @properties. “Moving into the colder months, pricing properties correctly will continue to be the key to capturing serious buyer attention, and quick decision making and flexibility will gain greater importance as inventory declines.”

Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Oct. 7, 2017 for the period Sept. 1 through Sept. 30, 2017. 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.

Illinois REALTORS® is a voluntary trade association whose more than 47,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois 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.illinoisrealtors.org/marketstats.

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MEDIA ONLY: Economist Dr. Geoffrey J.D. Hewings will be available for media interviews between 9 a.m. and noon on Oct. 20. He can be reached at 312-320-3460.

Contact: Stephanie Sievers, 217-529-2600