Strong housing momentum continues in June with double-digit gains in Illinois home sales

SPRINGFIELD, Ill. – July 22, 2015 – (RealEstateRama) — Illinois home sales in June surged 12.5 percent higher than last year while median prices also saw strong gains, according to the Illinois Association of REALTORS®.

Statewide home sales (including single-family homes and condominiums) in June 2015 totaled 17,972 homes sold, up 12.5 percent from June 2014 when 15,982 homes sold.

The statewide median price in June 2015 rose to $194,243, an 8.5 percent gain over June 2014’s statewide median price of $179,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Sellers keep reaping the rewards of a market that has continued to see median prices edge higher every month this year,” said Jim Kinney, ABR, CRB, CRS, GRI, president of the Illinois Association of REALTORS® and vice president for luxury sales at Baird & Warner in Chicago. “A decrease in the number of days it takes on average to sell a home in Illinois shows that buyers are undeterred by the steady upward tick in prices.”

The time it took to sell a home in June averaged 63 days statewide, down from 68 days a year ago and faster than 72 days last month. Available housing inventory remained tight with 70,999 homes for sale, a 6.9 percent decline from June 2014 when there were 76,287 homes.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central Region was 3.98 percent in June 2015, up from 3.82 percent the previous month, according to the Federal Home Loan Mortgage Corp. In June 2014 it averaged 4.17 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area, home sales (single family and condominiums) in June 2015 totaled 13,100, an increase of 14.2 percent from the 11,470 sales in June 2014.

The median price in June in the Chicago PMSA was $232,500, up 5.7 percent from $220,000 in June 2014.

“The burst in sales growth last month was unexpected,” said Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois. “Prices, however, are growing more modestly yet strongly. The foreclosure inventory seems to be playing a diminishing role in terms of both sales and prices with significant declines in the shares of sales accounted for by foreclosed properties in recent months.”

According to the data, fifty-six (56) Illinois counties reported recorded sales gains for June 2015 over previous-year numbers, including Rock Island County, up 26.8 percent with 180 units sold; Will County, up 19.3 percent with 1,220 units sold; McLean County, up 16.4 percent with 319 units sold; and Lake County, up 14.0 percent with 1,262 units sold.

Sixty-one (61) counties recorded median price gains in June 2015 over previous-year numbers, including Macon County, up 20.9 percent to $107,000; Cook County, up 9.2 percent to $243,000; and Champaign County, up 6.0 percent to $155,000.

The city of Chicago saw sales of 3,110 homes in June 2015, up 9.3 percent from last year when 2,846 homes were sold. The median price of a home in Chicago was $290,000, up 5.5 percent over June 2014 when the median price was $275,000.

“Median prices in Chicago have increased steadily since October 2012, providing a remarkable comeback story for the city’s real estate market,” said Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. in Chicago. “Consumer interest remains keen, as shown by the month-over-month increases in sales recorded since February and the relatively short time it is taking to sell a home.”

Sales and price information is generated by Multiple Listing Service closed sales reported by 30 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC as of July 8, 2015 for the period of June 1 through June 30. 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. (NOTE: Due to a transition to a new Multiple Listing Service platform, only 22 days of data for the West Central Illinois Association of REALTORS® is included in the June report.)

The Illinois Association of REALTORS® is a voluntary trade association whose 43,000 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 CDT on July 22. He can be reached at 312-320-3460.

Contact: Stephanie Sievers, 217-529-2600