December 29, 2005

For Immediate Release

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

November Illinois Home Sales Nearly Even with Last Year; Median Price at $202,000

SPRINGFIELD, Ill. — November home sales were nearly even with last year and home sales for 2005 are headed for a fourth straight record year. According to the Illinois Association of REALTORS, total home sales (which include single-family homes and condominiums) were 13,390 in November 2005, off just 0.9 percent from 13,514 sales in November 2004. The Illinois median home price in November was $202,000, up 9.8 percent from $183,900 a year earlier. The median is a typical market price where half the homes sold for more, half sold for less.

Total home sales year-to-date (January through November) show an overall increase of 2.2 percent to 169,775 homes sold compared to 166,097 sales in the first eleven months of last year. November home sales were the second highest sales on record for that month.

“The housing market continues to be a bright spot in the Illinois economy. Residential real estate market activity has remained high despite interest rates inching upward. We are seeing increasing inventory across the state, so we should expect to see a greater balance between supply and demand in the coming months,” said Stan Sieron, CRS, GRI, president of the Illinois Association of REALTORS. “We’re headed for a fourth consecutive record year for home sales and the National Association of REALTORS has predicted 2006 to be the second best year in history.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.41 percent, up 0.27 points from the 6.14 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in November it averaged 5.84 percent. The 30-year fixed-rate mortgage is projected to reach 6.6 percent during the second half of 2006.

Statewide, single-family home sales were down 4.2 percent in November 2005 to 9,240 homes sold from 9,642 in November 2004. The median single-family home price in November was $200,000, up 11.1 percent from $180,000 a year earlier. The single-family average home price for November 2005 was $255,759, a 14.9 percent increase from $222,595 in 2004.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), single-family home sales totaled 5,713, down 3.1 percent from 5,896 home sales in November 2004. The median single-family home price for the Chicagoland PMSA was $267,000, up 11.2 percent from $240,000 in November 2004.

Statewide, 4,150 condominium sales were reported in November 2005, up 7.2 percent from 3,872 sales in the same month last year. The condo median price for November was $204,000, up 7.4 percent from $190,000 one year ago.

Condominium sales in the Chicagoland PMSA rose 7.4 percent in November 2005 to 3,992 units sold, while the condo median sales price increased 7.8 percent to $208,000. In November 2004 condo sales for the Chicagoland PMSA totaled 3,717; the median price was $193,000.

“Strong economic expansion is expected in the fourth quarter not only nationally but statewide with positive job growth, lower oil prices and retail spending giving a sustained boost to overall consumer confidence,” said Sieron, broker-owner of Stan Sieron and Company in Belleville. “Recent interest rate increases should not dampen sales between now and year’s end and we anticipate that the 2005 market will finish among the top markets in the more than 16 years that IAR has tracked data. Basic fundamentals for a strong and healthy housing market are still in place and should keep the housing industry bustling as we head into the new year.”

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 55,000 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.

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