FOR RELEASE: October 19, 2012
For Further Information Contact: Stephanie Sievers, 217-529-2600
SPRINGFIELD, Ill. — Home sales increased 15.9 percent over previous-year levels in September, extending a run of more than a year of sales gains, according to the Illinois Association of REALTORS®.
The strong sales report was coupled with data showing the median price of a home in the state rose 2.2 percent.
Statewide home sales (including single-family homes and condominiums) in September 2012 totaled 10,689 homes sold, up from 9,220 in September 2011. IAR has seen year-over-year sales increases since July 2011.
The statewide median price in September was $139,000, up 2.2 percent from September 2011 when the median price was $136,000. The median price of an Illinois home has increased 13.6 percent from January 2012’s median price of $122,350. The median is a typical market price where half the homes sold for more and half sold for less.
“If there is a headline from the first nine months of 2012, it is one of continued market stabilization,” said Michael D. Oldenettel, CRS, GRI, and Managing Broker/Owner with RE/MAX Results Plus in Jacksonville, Ill. “The prices, interest rates and consumers’ feelings about the economy are fueling improvements in the housing market.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 3.49 percent in September 2012, down from 3.60 percent during the previous month, according to the Federal Home Loan Mortgage Corp. Last September it averaged 4.09 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single family and condominiums) in September 2012 totaled 7,484 homes sold, up 24.0 percent from September 2011 sales of 6,035 homes. The median price in September 2012 was $160,000 in the Chicago PMSA, unchanged from September 2011. The median price of a home in the Chicago area in September was $20,000 above January 2012’s median price of $140,000.
“Given the uncertainties in the economy, with the forthcoming election contributing significantly, the housing market has performed well in the last quarter,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “While month-over-month sales were down in September, the year-over-year sales were up and prices continued their modest recovery.”
Forty-five (45) of 101 Illinois counties reporting showed year-over-year home sales increases in September 2012. Forty-four (44) counties showed year-over-year median price increases including DuPage, up 2.6 percent to $200,000; JoDaviess, up 3.9 percent to $140,250; Kane, up 2.3 percent to $135,000; Kendall, up 6.0 percent to $157,875; McLean, up 3.9 percent to $160,000; Peoria, up 8.8 percent to $130,000; and Sangamon, up 4.3 percent to $125,000.
The city of Chicago saw a 23.2 percent year-over-year home sales increase in September 2012 with 1,845 sales, up from 1,498 in September 2011. The condo market in the city of Chicago showed a sales increase of 32.2 percent, going from 855 units sold in September 2011 to 1,130 sales in September 2011. The median price of a home in the city of Chicago in September 2012 was $188,900, off 0.6 percent compared to September 2011 when it was $190,000.
“On one hand we’re having great success because we’re seeing many more sales come to close, but the price points are lagging behind where we’d like to see them,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “Prices are in line with the amount of distressed product that’s still out there; we have to work through that inventory. We should continue to try to stabilize the lower half of the market, particularly the condo market in the city, which to a large extent is a function of consumer confidence and jobs.”
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 October 7, 2012 for the period September 1 through September 30, 2012. 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. 19.