August Illinois Home Sales Strong at the Entry Level Statewide Median Price at $165,000

SPRINGFIELD, Ill. — Record low mortgage interest rates, favorable prices at the entry level, and the first-time homebuyer tax credit propel home sales in August. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in August 2009 reached 10,595 homes sold, down 3.0% from August 2008 sales of 10,923. The Illinois median price in August 2009 was $165,000 down 14.8% from $193,750 in August 2008. The median is a typical market price where half the homes sold for more, half sold for less.
In the Chicagoland Primary Metropolitan Statistical Area (PMSA), year-over-year home sales were positive for the second consecutive month, up 1.3% to 7,009 homes sold in August 2009 compared to 6,917 homes sold in August 2008. The median home sale price for the Chicagoland PMSA was $205,000 in August 2009, down 18.7% from $252,000 in August 2008.
According to Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois: “The size of the unsold housing inventory continues to make this a buyers’ market with an approximate value of nine months for Illinois and almost 11 months for Chicago at current sales rates. Absent an uptick in sales, it is unlikely that prices will recover much before the middle of 2010.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.27% in August 2009, down 0.25 from the 5.52 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in August it averaged 6.52%.
Illinois’ official unemployment rate in August reached 10.0% and was above the 9.7% national unemployment rate.
In the city of Chicago, August total home sales (single-family and condominiums) totaled 1,928, down 7.2% from 2,078 homes sold in August 2008. The city of Chicago median price in August 2009 was $229,476, down 22.9% from $297,500 a year ago in August 2008.
According to the IAR report, total home sales (single-family and condominiums) comparing August 2009 to the same month in 2008 were up in 32 of 99 Illinois counties reporting including Adams, up 5.8%; Boone, up 6.2%; Cook, up 0.7%; DeKalb, up 33.6%; DuPage, up 5.7%; Kendall, up 12.5%; Logan, up 30.8%; Rock Island, up 24.8%; and Sangamon, up 17.3%.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 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.
September 2009
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