Illinois home sales and prices continue upward climb in August; Statewide sales rise 17.3 percent, median prices rise 13.6 percent

FOR RELEASE: September 19, 2013

For Further Information Contact: Stephanie Sievers, 217-529-2600

Illinois home sales and prices continue upward climb in August; Statewide sales rise 17.3 percent, median prices rise 13.6 percent

SPRINGFIELD, Ill. — Illinois home sales increased 17.3 percent over previous-year levels in August and median prices increased 13.6 percent, according to the Illinois Association of REALTORS®, closing out the summer selling season on a strong note.

Statewide home sales (including single-family homes and condominiums) in August 2013 totaled 15,814 homes sold, up from 13,485 in August 2012. August marks one year of continuous annual sales and price gains.

The statewide median price in August was $167,000, up 13.6 percent from August 2012 when the median price was $147,000. The median is a typical market price where half the homes sold for more and half sold for less.

“The spring and summer selling season was quite strong, and the data suggest continued momentum into the fall,” said Michael D. Oldenettel, CRS, GRI, president of the Illinois Association of REALTORS® and Managing Broker/Owner with RE/MAX Results Plus in Jacksonville, Ill.  “A 13.6 percent median price gain in August for home prices in the state is an indicator of unflagging demand for homeownership.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.44 percent in August 2013, up from 4.35 percent in July, according to the Federal Home Loan Mortgage Corp. In August 2012 it averaged 3.60 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in August 2013 totaled 11,771 homes sold, up 24.3 percent from August 2012 sales of 9,471 homes.

The median price in August 2013 was $197,500 in the Chicago PMSA, up 16.2 percent from $170,000 in August 2012. The time it took to sell a home dropped substantially in August with listings averaging 59 days until sale, a 28.9 percent drop compared to 83 days in August 2012.

“Price and sales recovery continues and the forecast for the last quarter suggest that the momentum will be maintained,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois. “The price mix of homes sold is moving back to pre-recession levels as price increases move more homes into higher categories and as home buyers begin to seek more expensive properties. The sluggish economic recovery and increasing mortgage interest rates have not yet dampened housing demand.”

Fifty-two (52) of 102 Illinois counties reporting to IAR showed year-over-year home sales increases in August 2013. Forty-one (41) counties showed year-over-year median price increases including LaSalle, up 49.9 percent to $104,900; Jefferson, up 23.9 percent to $114,000; Kendall, up 17.8 percent to $182,650; Lake, up 16.1 percent to $220,551; DuPage, up 14.6 percent to $235,000; and McLean, up 1.7 percent to $157,700.

The city of Chicago saw a 22.0 percent year-over-year home sales increase in August 2013 with 2,797 sales, up from 2,293 in August 2012.  

The median price of a home in the city of Chicago in August 2013 was $245,000 up 22.5 percent compared to August 2012 when it was $200,000. Chicago condo prices also saw double-digit gains for the month, posting a 17.6 percent jump to $282,250. Average time on market in the city was 47 days, down 36.5 percent compared to 74 days in August 2012.

“In the city of Chicago, we continue to see condo sales drive our market, with an increase in the number of units sold to 1,775 in August 2013, up 23.1 percent from the previous year, and the median home price has risen by 17.6 percent, to $282,250,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “As inventory is absorbed in some of the more popular areas of Chicago, our hope is that it spawns interest in neighborhoods that have not experienced the same growth, but offer viable, affordable housing options key to the economic renewal of our city.”

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 Sept. 7, 2013 for the period Aug. 1 through Aug. 31, 2013. 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.        

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MEDIA ONLY: Economist Dr. Geoffrey J.D. Hewings will be available for media interviews between 9 a.m. and noon CST on Sept. 19.