CHICAGO—Experts predicted that the Illinois residential housing market would boom once summer arrived, and so far, the rosy predictions have come true. According to statistics just published by the Illinois Association of REALTORS®, a total of 15,268 homes were sold in June, an increase of 14.9 percent over June 2012. Furthermore, the median price for homes was $170,000, up 9.7 percent from the previous June. The trade group says that this marks 24 consecutive months of year-over-year sales increases.
In addition, the data show that the inventory of homes for sale in June was 65,658 units, a 27.4 percent drop compared to last year's 90,461 units. And owners were able to sell their homes in an average of only 76 days, down 20 percent from the 95 days it took last June.
“To have this extended run of year-over-year sales gains shows that the housing market in Illinois is indeed recovering,” says Michael D. Oldenettel, president of the association and managing broker and owner of RE/MAX Results Plus in Jacksonville. “Enthusiasm on the part of buyers shows no signs of flagging, and that drive to own a home is helping the state out of one of the worst economic downturns in recent memory.”
Buyers and sellers in most regions were more active. In the nine counties that comprise the Chicago metropolitan area, for example, a total of 11,103 homes were sold, an increase of 18.7 percent over the previous June. And city of Chicago homebuyers closed on 2,623 homes, up from 2,332 in June 2012, a 12.5 percent increase. And the median price of a metropolitan area home in June 2013 was $206,000, up 13.2 percent from $182,000 in June 2012.
“The rising house prices suggest some significant movements towards a more stable housing market,” notes Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “New analysis of the foreclosure process suggests that a return to pre-recession levels could occur early next year, further enhancing the housing recovery. Rising interest rates appear not to be dampening demand and continued upward pressure on rental prices is clearly encouraging more potential buyers into the market.”
“Chicago home sales continue to trend in the right direction, now to the point that they are pushing the whole market and bringing activity to some of our lower-performing neighborhoods as inventory thins city-wide,” says REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and operating principal and managing broker for Keller Williams Realty. “We are encouraged that lower inventory will prompt more sellers to enter the market. For both buyers and sellers, the time is right to get involved.”
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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.
