CHICAGO—Statewide home sales ended what had already been a strong year on a high-note, according to data just published by the Illinois Association of REALTORS®. A total of 11,279 Illinois homes were sold during December, a 7.9% increase over the 10,454 sold in December 2012. Furthermore, year-end home sales totaled 153,492, up 18.9% from the 129,092 sold during 2012. And the statewide median price in December was $149,000, up 13.7% from December 2012 when the median price was $131,000.
"Since January, Illinois has seen a steady stream of positive data which included strong year-over-year sales and median price growth," says Phil Chiles, president of the state association and broker-associate with The Real Estate Group in Springfield. "The numbers show that the housing market is a robust one heading into the new year, and consumer interest does not appear to be flagging even in the face of diminished inventories."
In the last few months, available inventory had dipped compared to the previous year and was a factor in pushing up median prices as relatively healthy numbers of potential buyers competed to purchase the shrinking number of for-sale homes.
Chicago's nine-county metropolitan area also saw an increase in sales. A total of 8,126 homes, including condominiums, were sold last month, an increase of 8.1% over the previous December. Year-end 2013 home sales in the metro area totaled 111,427, up 23% from the 90,608 sold in 2012. And city of Chicago homebuyers closed on 2,080 homes last month, up from 1,849 in December 2012, a 12.5% increase. And year-end sales in the city totaled 27,155, a 21.2% increase from the total sales in 2012.
The median price of a metropolitan area home in December 2013 was $149,000, up 13.7% from $131,000 in December 2012.
“The year 2013 was a good one for the housing market and the prospects for the early part of 2014 appear equally positive,” notes Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “Foreclosures still appear to be having a dampening effect on prices (especially within the immediate vicinity of a foreclosed property) but there is every expectation that the levels of foreclosure might return to pre-recession levels within 12 months.”
“A surplus of pent-up buyers helped move the market in 2013,” says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. “Motivated sellers, paired with attractive interest rates and a sense of a more stable economic climate, helped close deals that might have otherwise not come to the table. The return of the jumbo loan allowed for move-up buyers to buy their next home as a delayed recovery can be in part attributed to the $417,000 federally-backed loan limit and no other jumbo loan options.”
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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.
