Online Staff Report
SPRINGFIELD, Ill. — The Illinois housing market saw October home sales increase 3.7 percent over previous-year levels and median prices rise 13.8 percent, according to the Illinois Association of Realtors.
Statewide home sales (including single-family homes and condominiums) in October 2013 totaled 12,349 homes sold, up from 11,903 in October 2012.
The statewide median price in October was $153,000, up 13.8 percent from October 2012, when the median price was $134,500. The median is a typical market price where half the homes sold for more and half sold for less.
“The intense demand for housing this year has steadily drawn down the inventory of homes on the market,” said Phil Chiles, ABR, CRS, GRI, SRES, president of the Illinois Association of Realtors and broker-associate with The Real Estate Group in Springfield, Ill. “As a result, homebuyers will often find they are paying more for a home than they did a year ago, and they may have to work harder with a broker to find a home that’s the right fit for them due to the lack of inventory.”
The statewide inventory of available homes for sale totaled 66,433 units in October, down 18.3 percent compared to 81,281 last year.
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.20 percent in October 2013, down from 4.50 percent in September, according to the Federal Home Loan Mortgage Corp. In October 2012, it averaged 3.36 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in October 2013 totaled 9,303 homes sold, up 9.6 percent from October 2012 sales of 8,492 homes.
The median price in October 2013 was $175,000 in the Chicago PMSA, up 14.4 percent from $153,000 in October 2012. The time it took to sell a home dropped substantially in October with listings averaging 62 days until sale, a 26.2 percent decrease compared to 84 days in October 2012.
“While the partial government shutdown has certainly had a profound negative effect on the housing market’s continuing recovery, sales and prices are forecast to return to more robust growth rates over the next three months,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The declines in consumer sentiment suggest that a longer-term resolution to the government fiscal tensions would provide conditions that would significantly help the housing market.”
Forty-eight of 102 Illinois counties reporting to IAR showed annual home sales increases in October 2013. Forty-eight counties showed year-over-year median price increases, including Kane, up 23.1 percent to $166,000; Kankakee, 20.9 percent to $120,000; Cook, up 17 percent to $175,500; Sangamon, up 10.3 percent to $128,000; DuPage, up 6.2 percent to $206,000; and Boone, up 1.9 percent to $107,000.
The city of Chicago saw a 7.5 percent year-over-year home sales increase in October 2013 with 2,231 sales, up from 2,076 in October 2012.
The city of Chicago continues to see a steady market increase in median home pricing to $218,500 in October 2013 versus $175,000 in October 2012, a 24.9 percent increase, year over year.
“Lower inventory options continue to raise pricing in the city as motivated, qualified buyers look to make their move as lower interest rates afford more value for their investment,” said Matt Farrell, president of the Chicago Association of Realtors and managing partner of Urban Real Estate.
“As the market continues to correct itself, buyers will appreciate increased value on their long-term investment. Absorption of distressed properties being rehabbed and resold will also continue to add value to the communities they are in,” Farrell added.
Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois Realtor local boards and associations including Midwest Real Estate Data LLC data as of Nov. 7, 2013, for the period Oct. 1 through Oct. 31, 2013. 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.
Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats.
Posted Nov. 20, 2013