Illinois home prices continue trend of strong annual gains in November despite lower housing inventory statewide

FOR RELEASE: December 19, 2013

For Further Information Contact: Stephanie Sievers, 217-529-2600

Illinois home prices continue trend of strong annual gains in
November despite lower housing inventory statewide

SPRINGFIELD, Ill. — The Illinois housing market saw November median prices rise 7.4 percent over previous-year levels while statewide home sales dipped 1.8 percent, according to the Illinois Association of REALTORS®.

Statewide home sales (including single-family homes and condominiums) in November 2013 totaled 10,624 homes sold, down from 10,820 in November 2012. Housing inventory in November was down 19.7 percent compared to a year earlier, dropping from 77,109 homes for sale in November 2012 to 61,882 this year.

The statewide median price in November was $145,000, up 7.4 percent from November 2012 when the median price was $135,000. The median is a typical market price where half the homes sold for more and half sold for less.

"This is a classic case of supply and demand," said Phil Chiles, ABR, CRS, GRI, SRES, president of the Illinois Association of REALTORS® and Broker-Associate with The Real Estate Group in Springfield. "The low number of homes on the market is forcing consumers, who very much want to buy, to pay a bit more. What's important to note is that there's still a lot of interest in purchasing a home despite the lower selection."

Home sales for the first 11 months of 2013 were 19.5 percent ahead of 2012. Year-to-date median prices were 7.6 percent ahead of 2012 levels.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.27 percent in November 2013, up from 4.20 percent in October, according to the Federal Home Loan Mortgage Corp. In November 2012 it averaged 3.33 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in November 2013 totaled 7,640 homes sold, down 1.3 percent from November 2012 sales of 7,744 homes.

The median price in November 2013 was $170,000 in the Chicago PMSA, up 9.7 percent from $155,000 in November 2012. The time it took to sell a home dropped substantially in November with listings averaging 62 days until sale, a 25.3 percent decrease compared to 83 days in November 2012.

“As with many other markets, the Chicago and Illinois housing sales dipped into the negative range after 29 months of positive growth, but prices continued to inch forward,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “One of the greatest concerns in the housing market is the shrinking inventory of lower-priced homes presenting a challenge to lower income households many of whom are paying upwards of 50 percent of their incomes on rent.”

Thirty-six (36) of 102 Illinois counties showed annual home sales increases in November 2013. Thirty-nine (39) counties showed year-over-year median price increases including Boone, up 26.3 percent to $110,500; Rock Island, up 23.5 percent to $103,750; St. Clair, up 22.4 percent to $105,000; Kane, up 16.7 percent to $160,500; and Cook, up 13 percent to $169,500.

The city of Chicago saw a 0.1 percent year-over-year home sales increase in November 2013 with 1,800 sales, up from 1,798 in November 2012. The median price also rose to $200,000 versus $180,000 in November 2012, an 11.1 percent annual increase.

The city of Chicago continues to see a steady increase in median home pricing to $220,500, year-to-date, versus $185,000 January through November 2012.

"This November was reflective of a typical autumn month of sales in Chicago, the real difference being the inventory of homes available, which was down 27.1 percent from this time last year,” said Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate.

"Chicago is continuing to see buyers contemplate their future needs; however, the inventory available in 2014 will ultimately dictate the opportunities available for those looking to make a move,” Farrell added.

Sales and price information is generated by Multiple Listing Service closed sales reported by 30 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Dec. 7, 2013 for the period Nov. 1 through Nov. 30, 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. (NOTE: The Decatur Association of REALTORS® data is not included in the November report due to a Multiple Listing Service change.)

The Illinois Association of REALTORS® is a voluntary trade association whose 41,000 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 to safeguard and advance the interest of real property ownership.

Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats. Watch an IAR video on the November housing report at http://www.youtube.com/watch?v=qSy6AXMDLcU.