IAR Market Stats

September 26, 2005

For Immediate Release

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

Illinois Home Sales Pick Up 8.6 Percent in August; Median Price at $215,000

SPRINGFIELD, Ill. — Illinois home sales bustle in August to wrap-up the summer home-selling season. According to the Illinois Association of REALTORS® there were 19,957 total home sales, which include single-family homes and condominiums, in August 2005, up 8.6 percent from 18,384 sales in August 2004. The Illinois median home price in August was $215,000, up 11.1 percent from $193,500 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 August) show an overall increase of 2.5 percent to 125,482 homes sold compared to 122,404 sales in the first eight months of last year.

“Demand for housing is as strong as ever largely due to continued attractive interest rates, strong demand for second homes and investment homes from the baby boomers, plus an improving jobs picture in Illinois,” said Stan Sieron, CRS, GRI, president of the Illinois Association of REALTORS®. “Prices are rising at a healthy rate because demand is still stronger than supply at this point. As the supply of homes rises, it should take some of the pressure off prices. Even so, we expect home price appreciation to remain historically strong through the end of the year.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.92 percent, up 0.12 points from the 5.80 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in August it averaged 5.97 percent.

Single-family home sales were up 6.4 percent in August 2005 to 13,831 homes sold from 12,993 in August 2004. The median single-family home price in August was $217,000 up 11.3 percent from $195,000 a year earlier. The single-family average home price for August 2005 was $270,109, a 7.7 percent increase from $250,892 in 2004.

Statewide, 6,126 condominium sales were reported in August 2005, up 13.6 percent from 5,391 sales in the same month last year. The condo median price for August was $210,000, up 9.4 percent from $192,000 one year ago.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), single-family home sales totaled 8,811, up 5.6 percent from 8,341 home sales in August 2004. The median single-family home price for the Chicagoland PMSA was $279,900, up 10.4 percent from $253,490 in August 2004.

Condominium sales in the Chicagoland PMSA rose 13.3 percent in August 2005 to 5,870 units sold, while the condo median sales price increased 10.3 percent to $215,000. In August 2004 condo sales for the Chicagoland PMSA totaled 5,183; the median price was $195,000.

“Statewide, August was the strongest month so far in 2005 for condo sales and in the Chicago area we’re about even with June’s record number of condo sales,” said Sieron, broker-owner of Stan Sieron and Company in Belleville. “Chicago remains one of the lower priced big U.S. cities and is one of the most affordably priced metro areas of the country. Many are taking advantage of the market’s favorable conditions to buy a first home or condo and reap the social and financial benefits of homeownership.”

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.

-30-