CHICAGO—The state's residential housing market continues to accelerate and just posted its best May performance since 2006, according to new data released yesterday by the Illinois Association of REALTORS®. The trade group says that a total of 15,091 homes were sold in May, an increase of 24.4 percent over May 2012. A total of 12,621 homes were sold in April, the best April since 2007. Furthermore, the median price for homes was $155,000, up 6.9 percent from the previous May.
In addition, the data show that the inventory of homes for sale in May was 64,648 units, a 29 percent drop compared to last year's 91,009 units. And owners were able to sell their homes in an average of only 83 days, down 19.4 percent from the 103 days it took last May.
“Buyers are still quite bullish when it comes to the housing market and the increase in median home prices reflects that strong demand," says Michael D. Oldenettel, president of the association and managing broker and owner with RE/MAX Results Plus in Jacksonville, IL. “The fact that sales are approaching pre-recession levels is a positive sign that the market has rebounded.”
Buyers and sellers in most regions were more active. In the nine counties that comprise the Chicago metropolitan area, for example, a total of 10,951 homes were sold, an increase of 29.3 percent over the previous May. And city of Chicago homebuyers closed on 2,762 homes, up from 2,125 in May 2012.
“Another strong month for the housing market that, in some parts of the state, is showing very robust activity,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “All the indicators point to a strong three-month period of growth, even in median prices. Mortgage rates are starting to inch upwards but the rates are still attractive enough not to dampen the momentum.”
“May market data continues to affirm that we are on the right track, and excitement is growing within the real estate industry,” says Zeke Morris, president of the Chicago Association of REALTORS® and operating principal and managing broker, Keller Williams Realty, CCG. “Recovery is uneven citywide, however. We still have concerns about some underperforming areas in Chicago. Home owners considering selling their homes should assess if today's market is right for them. It could be a very good time to sell; in some communities, shorter market times paired with multiple offers make the climate ideal.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
