February 25, 2005

For Immediate Release

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

Editors 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. Reports from years prior to 2005 are now archived in the IAR Market Stats section and are no longer directly comparable to the county system of reporting.

January Single-Family Home Sales Up 1.7 Percent from Last Year; Statewide Median Price at $179,400

SPRINGFIELD, Ill.—The Illinois single-family home sales market in January started the new year in stride and stronger than last year at this time. According to the Illinois Association of REALTORS latest report, single-family home sales were up 1.7 percent in January 2005 to 6,247 homes sold, compared to 6,144 sales in January 2004.  The median price of a single-family home in January was $179,400, up 8.7 percent from $165,000 in January 2004. The median is a typical market price where half the homes sold for more, half sold for less. The average home price registered $223,800 in January 2005, up 3.5 percent from $216,200 in the same month of 2004.

“Winter weather conditions usually influence housing activity but REALTORS report better-than-expected sales for this time of year and continued price gains,” said John Veneris, CRB, CRS, president of the Illinois Association of REALTORS. “Long-term mortgage interest rates remain surprisingly low—despite actions taken by the Federal Reserve in the last eight months—and the rates continue to attract first-time buyers to the housing market.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.75 percent, down .05 points from the 5.80 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in January it averaged 5.79 percent.

A total of 2,920 condominium sales were reported in January 2005, up 22.7 percent from 2,379 sales in the same month last year. The statewide condominium median price for January was $195,000, up 8.3 percent from $180,000 one year ago.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), single-family home sales totaled 4,085, up 3.7 percent from 3,939 home sales in January 2004. The median single-family home price for the Chicagoland PMSA last month was $234,000 up 7.8 percent from $217,000 in January 2004.

Condominium sales in the Chicagoland PMSA rose 23.1 percent in January to 2,843 units sold, while the condominium median sales price increased 8.5 percent to $197,000. In January 2004 condo sales for the Chicagoland PMSA were 2,310; the median price was $181,500.

“The Chicagoland housing market does not seem to be slowing down and condo sales continue to be a driving force,” said Veneris, broker-owner of Realty Executives Pro/Team of Downers Grove and Realty Executives REALTORS in Naperville. “The outlook for interest rates looks favorable in 2005, averaging six percent, according to economists for the National Association of REALTORS. That bodes well for housing.”

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. Data for the Chicagoland PMSA is provided by the Multiple Listing Service of Northern Illinois and MAP Multiple Listing Service.

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.