CHICAGO— Illinois home prices have now marked 20 consecutive months of year-over-year gains, but a depressed inventory has also become a pattern, according to officials from the Illinois Association of REALTORS®. The organization just published statistics which show a decline in April home sales, at least compared to April 2013, and a decline in available inventory.
“Inventory levels are tight but improving slightly and mortgage rates are still fairly low, giving consumers more buying power,” says Phil Chiles, president of the state association and broker-associate with the Real Estate Group in downstate Springfield. "Sellers who have been putting off a decision to list could find this spring is the right time to sell to take advantage of pent-up buyer demand and less market competition."
In April, a total of 11,845 homes were sold, including condos, down from 12,846 in April 2013. The association's data also show that only 63,406 units were available, down 10.9% compared to last year.
The ones that did hit the market sold rapidly, however, and for relatively high prices. Homes spent an average of 65 days on the market until sale, a 15.6% decrease over last year. The statewide median price was $156,000, up 7.6% from April 2013 when it was $145,000, the association's data show.
Chicago's metropolitan area also saw a dip in sales. In the nine counties that comprise the Chicago metropolitan area, a total of 8,391 homes were sold, down 9.9% from the previous April. But the median price of a metropolitan area home was $190,000, up 9.9% from $172,950 in April 2013.
Chicago homebuyers closed on 2,210 homes, down from 2,392 in April 2013, a 7.6% decline. And city homes saw the biggest boost in prices. The median price rose to $250,000 versus $223,250, an annual increase of 12.0%.
“There is continuing good news with increasing median prices,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “However, inventory remains a problem, especially at the lower end of the market.”
"Inventory remains at a low across the city of Chicago, creating lower market times and increased sales prices during a time of year when many traditionally are looking to buy or sell," says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate.
"As buyers navigate their way through the home buying process, it can't be stated enough that if you see something you like, it won't likely be available a few days later,” he adds.
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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.
