November 14, 2005

For Immediate Release

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

Illinois Third-Quarter Home Sales Up 3.9 Percent; Statewide Single-Family Median Price at $211,000

SPRINGFIELD, IL – Illinois residential sales posted solid growth in the third quarter, according to the latest report from the Illinois Association of REALTORS. Total home sales, which include single-family homes and condominiums, were up 3.9 percent in the third quarter of 2005 compared to the period July through September of last year. A total of 54,749 single-family homes and condominiums sold across the state in the third quarter of 2005, compared to 52,682 sales in 2004. Year-to-date home sales for the first nine months of the year total 142,207, up 3.0 percent from 138,077 in 2004.

“After a slight breather in July, sales in August and September were especially robust compared to past years with Illinois REALTORS logging record sales of both single-family homes and condos for those months. Strong demand remains for housing and any slight rise in interest rates over the period did little to concern motivated buyers,” said Stan Sieron, CRS, GRI, president of the Illinois Association of REALTORS. “For the quarter, rates were below six percent and have been a driving force in the five-year housing boom. Strong demand and affordable rates should continue as we transition from a boom to a healthy expansion.”

The third-quarter interest rate for 30-year, fixed-rate mortgages averaged 5.86 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation.

Countywide MLS sales and median price information are contained in the tables that accompany this news release. Sales data is generated from a survey of 36 local REALTOR associations throughout the state.

Sales gains were reported in 53 of 97 Illinois counties reporting in the third quarter; 78 counties reported an increase in median sales price for the same period.

Single-family home sales for the quarter were up 1.3 percent to 37,833 homes sold from 37,346 in 2004. The median price of a single-family home during the third quarter of 2005 was up 11.1 percent to $211,000 compared to $189,900 last year in the same period.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), sales of single-family homes were up 0.6 percent in the third quarter to 23,571, compared to 23,427 home sales in 2004. The median price of single-family homes sold in the Chicagoland PMSA increased 10.0 percent to $275,000 in the third quarter of 2005 compared to $250,000 in the same period one year ago. The Chicagoland PMSA includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Statewide, single-family median home prices in the third quarter ranged from $334,900 in DuPage County to $24,500 in Hancock County. A sample of the counties in the Chicagoland PMSA that reported year-to-year price appreciation include Cook, up 10.2 percent to $270,000; DeKalb, up 4.6 percent to $184,000; Grundy, up 11.5 percent to $214,100; Kane, up 13.0 percent to $260,000; Kendall, up 10.6 percent to $264,950; Lake, up 7.6 percent to $312,000; McHenry up 9.4 percent to $255,900; and Will, up 12.3 percent to $247,000.

A sample of counties around the state that saw median price increases includes Champaign, up 4.8 percent to $143,500; Macon, up 6.9 percent to $85,000; Madison, up 12.5 percent to $131,500; Peoria, up 8.1 percent to $105,950; Rock Island, up 15.2 percent to $93,875; Sangamon, up 8.3 percent to $117,000; Winnebago, up 9.9 percent to $126,950; and Woodford, up 8.1 percent to $160,000.

Affordability

The third-quarter 2005 Illinois Housing Affordability Index* stood at 158.78, compared to 167.77 during the third quarter of 2004. The affordability index measures the ability of a typical four-person family to purchase a median-priced single-family residence. For example, the annual index reveals that a family earning the statewide median income (for a four-person family) of $75,979 had 158.78 percent of the income needed to qualify for conventional financing covering 80 percent of a single-family home priced at the median price of $211,000.

IAR’s Housing Affordability Index uses an interest rate based on a composite of closing rates for fixed-rate mortgages on single-family homes as reported by the Federal Home Loan Mortgage Corporation. The average third-quarter 2005 effective rate for the North Central region, which includes Illinois, was 5.86 percent (down from 5.97 percent in third-quarter 2004).

Condominiums

The Illinois condominium market reported 16,916 units sold in the third quarter of 2005, a 10.3 percent increase over 2004 figures of 15,336 units sold for the same period. The statewide median price for condos increased 8.0 percent to $208,200, compared to $192,775 in the third quarter of 2004.

The Chicago PMSA saw a 10.1 percent increase in condominium sales in the third quarter of 2005 to 16,246 units sold, from 14,749 in 2004. For the Chicagoland area, the median condo price rose 9.0 percent in the third quarter of 2005, to $213,000 compared to $195,500 in 2004.

“The versatile condo has become the housing stock of choice for many first-time buyers, investors and boomers who want that second home in a metro area closer to shops, restaurants and culture,” said Sieron, broker-owner of Stan Sieron and Company in Belleville. “Going forward, we do anticipate 2005 to set a record for home sales even with the onset of the holidays, cooler weather, and an expected uptrend in mortgage rates to about 6.2 percent by year’s end as projected by economists for the National Association of REALTORS®.”

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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