March 23, 2005

For Immediate Release

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

Editor’s Note:  Starting with the January 2005 release, IAR is using a new system of market statistics reporting based on county totals for single-family home sales (existing and new) and condominiums as well as median and average prices. Monthly, IAR will report figures for the state as a whole and for the Chicagoland PMSA (Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties). Quarterly, IAR will provide a breakdown of sales totals and median prices by county.

February Single-Family Home Sales Soften 3.2 Percent from Last Year; Statewide Median Price at $174,500

SPRINGFIELD, Ill.— Following a strong start in January, Illinois single-family home sales experienced a seasonal slowdown in February while home prices continue to post positive gains. According to the Illinois Association of REALTORS latest report, single-family home sales eased 3.2 percent in February 2005 to 6,570 homes sold, compared to 6,788 sales in February 2004. The median price of a single-family home in February was $174,500, up 12.6 percent from $155,000 in February 2004. The median is a typical market price where half the homes sold for more, half sold for less. Year-to-date, home sales are down a fractional 0.6 percent, from 13,020 homes sold in 2005 to 12,937 in 2004.

“The market is still very strong by historical standards considering last February was the strongest on record,” said John Veneris, CRB, CRS, president of the Illinois Association of REALTORS. “The spring season will spark new activity in the market. Home sales will be driven by consumer confidence about job security and the economy in general and properly priced homes will continue to sell quickly.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.66 percent, down .09 points from the 5.75 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in February it averaged 5.63 percent. The average home price for February 2005 was $215,500, a 7.5 percent increase from $200,500 in February 2004.

A total of 3,174 condominium sales were reported in February 2005, up 23.3 percent from 2,574 sales in the same month last year. The statewide condominium median price for February was $207,500, up 13.7 percent from $182,500 one year ago.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), single-family home sales totaled 3,889, down 2.7 percent from 3,996 home sales in February 2004. The median single-family home price for the Chicagoland PMSA was $236,000, up 9.5 percent from $215,500 in February 2004.

Condominium sales in the Chicagoland PMSA rose 21.9 percent in February to 3,059 units sold, while the condominium median sales price increased 14.8 percent to $210,000. In February 2004 condo sales for the Chicagoland PMSA were 2,510; the median price was $183,000.

“Condo sales have become a significant force in larger markets such as the Chicagoland area,” said Veneris, broker-owner of Realty Executives Pro/Team of Downers Grove and Realty Executives REALTORS in Naperville. “The National Association of REALTORS reported that condo prices are appreciating at a faster rate than single-family homes. This trend will only boost the demand.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 36 participating Illinois REALTOR local boards and associations.  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.

The Illinois Association of REALTORS is a voluntary trade association whose 54,000 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.