CHICAGO—Illinois home sales in July hit their highest level since August 2006, and experts say the summer boom shows once again that the recent rise in interest rates has not deterred buyers. According to statistics just published by the Illinois Association of REALTORS®, a total of 16,012 homes were sold in July, an increase of 28.5 percent over July 2012. Furthermore, the median price for homes was $169,000, up 14.2 percent from the previous July. The trade group says that this marks 25 consecutive months of year-over-year sales increases.
In addition, the data show that the inventory of homes for sale in July was 67,466 units, a 24.7 percent drop compared to last year's 89,548 units. And owners were able to sell their homes in an average of only 73 days, down 23.2 percent from the 95 days it took last July.
“Slight increases in interest rates over the past few months have done little to slow interest in homeownership,” says Michael D. Oldenettel, president of the state association and managing broker and owner of RE/MAX Results Plus in Jacksonville. “Buyers are clearly comfortable enough with the way the economy is progressing to make a big purchase, and sellers are getting off the sidelines as they see prices begin to erase losses sustained during the recession.”
Buyers and sellers in most regions were more active. In the nine counties that comprise the Chicago metropolitan area, for example, a total of 11,897 homes were sold, an increase of 36.1 percent over the previous July. And city of Chicago homebuyers closed on 2,838 homes, up from 2,164 in July 2012, a 31.1 percent increase. The median price of a metropolitan area home in July 2013 was $201,075, up 18.3 percent from $170,000 in July 2012.
“While both prices and sales continue to point to a sustained housing market recovery,” notes Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois, “the inventory of homes for sale remains at low levels. The number of foreclosed properties may have deterred many potential sellers from listing their homes. Recent analysis suggests that the level of foreclosed properties may return to pre-recession levels by the end of the year and thus providing some incentive for additional listings.”
Chicago condo prices also saw double-digit gains for the month, posting a 13.8 percent jump to $280,000. And their average time on the market was only 48 days, down 30.4 percent compared to 69 days last July.
“The market is starting to come together, especially in the condo arena that was hard-hit across most areas of the city. That condos are moving at a strong pace now and prices are also increasing means that both buyers and sellers are feeling confident,” says REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and operating principal and managing broker for Keller Williams Realty. “As the availability of inventory continues to decrease, we hope to see buyers look into some of the areas that aren't performing as well, as an alternative.”
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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.
