FOR RELEASE: October 21, 2013
For Further Information Contact: Stephanie Sievers, 217-529-2600
SPRINGFIELD, Ill. —Momentum in the housing market continued into September with Illinois home sales increasing 19.8 percent over previous-year levels and median prices rising 12.9 percent, according to the Illinois Association of REALTORS®.
Statewide home sales (including single-family homes and condominiums) in September 2013 totaled 13,018 homes sold, up from 10,866 in September 2012. It was the strongest September in terms of sales since 2006, when 13,594 homes sold statewide.
The statewide median price in September was $157,000, up 12.9 percent from September 2012 when the median price was $139,000. The median is a typical market price where half the homes sold for more and half sold for less.
“September homebuyers showed they were not going to be deterred by slight interest rate increases or the possibility of a federal government shutdown,” said Phil Chiles, ABR, CRS, GRI, SRES, president of the Illinois Association of REALTORS® and Broker-Associate with The Real Estate Group in Springfield. “The numbers reflect a strong end to the warm weather selling season, and provide good momentum into the final quarter of the year.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.50 percent in September 2013, up from 4.44 percent in August, according to the Federal Home Loan Mortgage Corp. In September 2012 it averaged 3.49 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in September 2013 totaled 9,583 homes sold, up 25.6 percent from September 2012 sales of 7,629 homes.
The median price in September 2013 was $185,000 in the Chicago PMSA, up 15.6 percent from $160,000 in September 2012. The time it took to sell a home dropped substantially in September with listings averaging 61 days until sale, a 26.5 percent drop compared to 83 days in September 2012.
“The partial government shutdown has dampened the housing market’s continuing recovery,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “However, both sales and prices are forecast to continue at a much faster rate than a year ago and continued completion rates for foreclosures promise a return to a more normal market situation within 6 to 12 months.”
Fifty-three (53) of 102 Illinois counties reporting to IAR showed year-over-year home sales increases in September 2013. Forty-nine (49) counties showed year-over-year median price increases including Kane, up 25.9 percent to $170,000; Cook, up 19 percent to $187,450; DuPage, up 10 percent to $220,000; Rock Island, up 6.9 percent to $96,200; Macon, up 3.5 percent to $88,000; and Champaign, up 1.4 percent to $147,000.
The city of Chicago saw a 23.4 percent year-over-year home sales increase in September 2013 with 2,352 sales, up from 1,906 in September 2012.
The median price of a home in the city of Chicago in September 2013 was $231,000 up 22.6 percent compared to September 2012 when it was $188,400. Chicago condo median prices continued to see double-digit gains, posting a 18.7 percent jump to $273,000. Average time on market in the city was 50 days, down 30.6 percent compared to 72 days in September 2012.
"The city of Chicago saw a 25.4 percent year-to-date home sales increase through September 2013 over the same nine month period in 2012, to 20,904 units sold, over last year's 16,674," said REALTOR® Matt Farrell, managing partner at Urban Real Estate and president of the Chicago Association of REALTORS®. "The surge we've seen is likely due to an increased feeling of stability in the housing market, as well as the return of jumbo loan options for buyers. Chicago remains among the most affordable urban markets for families looking to make a world-class city their home, and still offers attractive housing options for those in the first-time buyer or move-up marketplace."
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 Oct. 7, 2013 for the period Sept. 1 through Sept. 30, 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. See the IAR infographic, “The Cost of Putting Off a Home Purchase,” that looks at interest rates and waiting to buy.
MEDIA ONLY: Economist Dr. Geoffrey J.D. Hewings will be available for media interviews between 9 a.m. and noon CST on Oct. 21.