Illinois 2Q11 housing market reflects last year's final tax credit push.
Mary Schaefer/Ann Londrigan
Illinois 2Q11 Housing Market Reflects Last Year’s Final Tax Credit Push
2Q11 All Sales 
2Q11 Condo 
SPRINGFIELD, Ill. – According to the Illinois Association of REALTORS® (IAR) second quarter 2011 report, Illinois home sales (which include single-family homes and condominiums) totaled 29,316 in the second quarter, down 18.0 percent from 35,746 home sales in the same period a year ago. The second quarter statewide median home sale price was $142,000, down 11.3 percent from $160,000 in the second quarter of 2010. The median is a typical market price where half the homes sold for more, half sold for less.
“The third quarter of 2011 will be a good time to check the recovery status of the housing market, recalling that the third quarter of 2010 was a period in which the effect of the housing stimulus program faded away,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Six out of 10 Illinois metropolitan statistical areas are forecast to have positive annual median price changes in the third quarter. The positive annual median price changes are a sign for recovery of some housing markets.”
Adds Hewings: “During the recession period of December 2007 to December 2009, eight out of 10 Illinois sectors experienced negative job growth; Education and Health and Government are the only two sectors that had positive job growth during the recession. Since January 2010, Illinois employment growth resumed in all but the Information and Financial activities, which continue to lose jobs leading to negative recovery rates.”
In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) were down 16.6 percent in the second quarter of 2011 to 19,799 homes sold compared to 23,735 home sales in the same period a year ago.
The nine-county region’s second quarter 2011 median price was $170,000, down 13.3 percent from $196,000 in the second quarter of 2010.
The second quarter 2011 interest rate for 30-year, fixed-rate mortgages averaged 4.69 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 4.89 percent in the first quarter of 2011 and down from 4.94 percent a year ago in the second quarter of 2010.
“With 65 percent of sales in the second quarter priced below $200,000 statewide, buyers are in the market for the lower-priced homes representing largely first-time and investment buyers and we are still looking for the move-up buyer to return to the market as they are key to a healthy housing market,” said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS® and a managing broker for Traders Realty in Peoria. “Much stronger signals are needed from the economy in the form of jobs and hiring to boost consumer confidence and the housing market.”
Adds Whitehurst: “In addition, REALTORS® are telling Congress that a measure federal regulators are considering to require a 20 percent down payment to purchase a home would make homeownership absolutely out of reach for many who are ready and able to make that step to homeownership. For a $142,000 home purchase, which is the second quarter statewide median price, having $28,400 in the bank for the down payment is a tough hurdle for most people looking in that price bracket.”
Thirty-eight of 100 Illinois counties reporting showed year-over-year median home price increases or no change for the second quarter of 2011 including Adams, up 11.1 percent to $105,000; Coles, up 1.2 percent to $86,000; Jo Daviess, up 12.0 percent to $140,000; Lee, up 11.1 percent to $100,000; Monroe, up 7.0 percent to $183,000; Peoria, unchanged at $116,000; Rock Island, up 2.6 percent to $97,500; Sangamon, up 0.9 percent to $127,500; and Stephenson, up 0.3 percent to $82,250.
In the city of Chicago, total home sales (single-family and condominiums) in the second quarter were down 23.7 percent to 5,010 sales compared to 6,567 sales in the second quarter of 2010. The city of Chicago median price in the second quarter was $190,000 down 17.4 percent from $230,000 in the same period for 2010.
“In the city of Chicago, second quarter 2011 sales of both single-family and condos are more reflective of 2009, with 5,010 units sold in the second quarter 2011, versus 4,945 during the same period in 2009 and 6,567 in 2010. While both 2009 and 2010 included federal tax incentives, second quarter 2010 was a hyper-incentivized market, where buyers knew an extension was highly unlikely,” said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Envision Real Estate LLC, Chicago. “As long as units are healthily absorbed and qualified buyers can access affordable loan products, an opportunity exists for a recovery, with distressed assets remaining manageable.”
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 33 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of July 7 for the period April 1 through June 30, 2011. 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 44,000 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.
Detailed second quarter 2011 Illinois home sales data can be accessed at the IAR website, www.illinoisrealtor.org/marketstats .
REVISED: The revised release reflects the retraction of the 2Q09 to 2Q11 comparison.