FOR RELEASE: October 21, 2014
For Further Information Contact: Stephanie Sievers, 217-529-2600
SPRINGFIELD, Ill. — Tighter inventory was a factor driving home prices higher in September while home sales showed an annual decline, according to the Illinois Association of REALTORS®.
Statewide home sales (including single-family homes and condominiums) in September 2014 totaled 12,879 homes sold, down 4.4 percent from 13,469 in September 2013.
The statewide median price in September was $161,900, up 4.5 percent from September 2013 when the median price was $155,000. The median is a typical market price where half the homes sold for more and half sold for less.
“We are seeing a market that provides a lot of opportunity for sellers,” said Jim Kinney, ABR, CRB, CRS, GRI, president of the Illinois Association of REALTORS® and vice president of luxury sales for Baird & Warner in Chicago. “The time it takes to sell a house has dropped dramatically since the beginning of the year, and prices have consistently beaten previous-year levels through the first nine months of 2014.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.16 percent in September 2014, up from 4.11 percent in August, according to the Federal Home Loan Mortgage Corp. In September 2013 it averaged 4.50 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in September 2014 totaled 9,117 homes sold, down 6.4 percent from September 2013 sales of 9,737 homes.
The median price in September 2014 was $195,000 in the Chicago PMSA, up 5.4 percent from $185,000 in September 2013.
“As the housing market enters a normally slow season, the trend of the last few months of declining sales on a month-to-month basis is expected to continue, but with gains on a year-over-year basis for the remainder of 2014,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “However, prices are still forecast to increase and inventories are slowly expanding.”
Forty-two (42) of 102 counties in Illinois showed annual home sales increases in September 2014. Fifty-five (55) counties showed year-over-year median price increases including St. Clair, up 14.8 percent to $130,000; Lake, up 10.6 percent to $208,000; LaSalle, up 9.3 percent to $99,450; Cook, up 6.6 percent to $199,900; and Winnebago, up 3.0 percent to $87,500.
The city of Chicago saw an 8.7 percent year-over-year decrease in home sales in September 2014 with 2,187 sales, down from 2,395 in September 2013. The median price rose to $250,000 versus $230,000 in September 2013, an annual increase of 8.7 percent.
“Chicago’s fall housing market features bright spots for both buyers and sellers,” said Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. “Buyers can be encouraged by a rise in the number of homes available for sale this fall to give them a broader selection. Sellers also continue to be in a strong position with median sales prices posting year-over-year gains and homes selling more quickly.”
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 Oct. 7, 2014 for the period Sept. 1 through Sept. 30, 2014. 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.
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.
MEDIA ONLY: Economist Dr. Geoffrey J.D. Hewings will be available for media interviews between 9 a.m. and noon CST on Oct. 21.