CHICAGO—Statewide home sales dipped last month, at least compared to November 2012, according to statistics just published by the Illinois Association of REALTORS®, and officials from the organization attribute the decline to a decline in available inventory. At the same time, median prices increased as a healthy number of potential buyers competed to purchase the shrinking number of for-sale homes.
"This is a classic case of supply and demand," says Phil Chiles, president of the state association and broker-associate with The Real Estate Group in Springfield. "The low number of homes on the market is forcing consumers, who very much want to buy, to pay a bit more. What's important to note is that there's still a lot of interest in purchasing a home despite the lower selection."
In November, a total of 10,624 homes were sold, down from 10,820 in November 2012. The association's data also show that only 61,882 units were available in November, down 19.7% compared to last year. However, the number of total sales in the first 11 months of this year was 19.5% higher than last year. And the statewide median price for homes last month was $145,000, up 7.4% from the previous November.
Chicago's metropolitan area also saw a bit of a dip in sales. In the nine counties that comprise the Chicago metropolitan area, a total of 7,640 homes, including condominiums, were sold, an decrease of 1.3% over the previous November. And city of Chicago homebuyers closed on 1,800 homes, up from 1,798 in November 2012, a 0.1% increase. The median price of a metropolitan area home in November 2013 was $170,000, up 9.7% from $155,000 in November 2012.
“As with many other markets, the Chicago and Illinois housing sales dipped into the negative range after 29 months of positive growth, but prices continued to inch forward,” notes Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “One of the greatest concerns in the housing market is the shrinking inventory of lower-priced homes presenting a challenge to lower income households many of whom are paying upwards of 50 percent of their incomes on rent.”
"This November was reflective of a typical autumn month of sales in Chicago, the real difference being the inventory of homes available, which was down 27.1% from this time last year,” says REALTOR® Matt Farrell, managing partner at Urban Real Estate and president of the Chicago Association of REALTORS®. "Chicago is continuing to see buyers contemplate their future needs; however, the inventory available in 2014 will ultimately dictate the opportunities available for those looking to make a move.”
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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.
