FOR RELEASE: December 22, 2014
For Further Information Contact: Stephanie Sievers, 217-529-2600
SPRINGFIELD, Ill. — The Illinois housing market saw November median prices rise 6.9 percent over previous-year levels while statewide home sales decreased 9.5 percent for the same period, according to the Illinois Association of REALTORS®.
Statewide home sales (including single-family homes and condominiums) in November 2014 totaled 9,915 homes sold, down 9.5 percent from 10,950 in November 2013.
The statewide median price in November was $155,000, up 6.9 percent from November 2013 when the median price was $145,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Sellers continue to see strong price gains as we move toward closing out 2014,” said Jim Kinney, ABR, CRB, CRS, GRI, president of the Illinois Association of REALTORS® and vice president for luxury sales for Baird & Warner in Chicago. “The year has seen a significant rebound in the real estate market, and the numbers this month provide optimism that price gains will continue into the new year.”
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in November 2014 totaled 7,090 homes sold, down 8.8 percent from November 2013 sales of 7,777 homes.
The median price in November 2014 was $182,000 in the Chicago PMSA, up 7.1 percent from $169,900 in November 2013.
“Illinois’ fourth coldest November on record had a negative effect on housing sales,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “While prices continue to improve, the sales forecast for the next three months indicates declines on a monthly and annual basis. Foreclosure sales continue to decline as a share of total sales; good news on the one hand but extending the time for return to pre-bubble levels.”
Twenty-eight (28) of 102 counties in Illinois showed annual home sales increases in November 2014. Fifty-two (52) counties showed year-over-year median price increases including Kankakee, up 21.1 percent to $119,900; McLean, up 10.1 percent to $161,243; Lake, up 9.6 percent to $183,950; Cook, up 8.9 percent to $183,000; and Rock Island, up 3.6 percent to $107,000.
The city of Chicago saw an 11.5 percent year-over-year decrease in home sales in November 2014 with 1,632 sales, down from 1,844 in November 2013. The median price rose to $230,000 versus $200,000 in November 2013, an annual increase of 15.0 percent.
"As we round out the year, higher median sales prices and low inventory continue to be the market pattern. Buyers are primed to invest in the home that fits their needs despite facing fewer choices," said Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. "Predictions that interest rates will pick up next year should drive both potential buyers and existing homeowners to take advantage now and seize the opportunity."
Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Dec. 22, 2014 for the period Nov. 1 through Nov. 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 on Dec. 22. He can be reached at 312-320-3460.