CHICAGO—For the last several months, home sales in the state have declined, at least on a year-over year basis. However, data just produced by the Illinois Association of REALTORS® show that statewide home sales reversed course in June, experiencing a slight year-over-year gain. And home prices continued to climb. In fact, the association just recorded the 22nd consecutive month of annual increases.
“It's great to see home sales come roaring back,” says Phil Chiles, president of the association and broker-associate with the Real Estate Group in Springfield. “Increasing prices and sales point to an improving economic situation and a strengthening real estate market.”
In June, a total of 15,661 homes were sold, including condos, slightly up from the 15,640 in June 2013. And the statewide median price last month was $179,900, a 5.8% boost from last June when the price was $170,000.
A decline in available inventory, and faster sales times, has also been a feature of the market lately. According to the realtors' data, it took an average of 68 days to sell a home, down 10.5% from the 76 days it took last year. The average time in the Chicago metro area was 53 days and it took an average of 44 days in Chicago.
The realtors did note a slight decline in home sales in the Chicago metro area. June sales in the nine-county area totaled 11,241, down 1.2% from June 2013 when 11,374 homes were sold. Still, the median price was $220,000, up 7.3% from $205,000 last June.
Other experts note still more helpful signs.
“The volume of sales over the next three months is forecast to match those recorded in 2013,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “In addition, median prices are continuing to climb while the REAL Housing Price Index suggests a slightly more optimistic growth rate when housing characteristics are taken into account.”
“Further good news may be found in the Chicago foreclosure inventory; the average inventory change rates were -24.2% in the past 6 months, -14.3% in the last 12 months and -8.2% in the last 24 months,” he adds. “Given these rates of change, the foreclosure inventory would return to the pre-bubble levels by Oct 2014, Dec 2014 and May 2015 respectively.”
The city of Chicago saw a 1.2% percent year-over-year increase in home sales in June 2014 with 2,761 sales, up from 2,729 in June 2013. The median price rose to $275,000, up from $252,500 in June 2013, an annual increase of 8.9%.
“Home sales traditionally pick up in the summer months, and June was no exception,” says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. “Chicago buyers helped reverse a year-over-year sales trend by buying more homes than last June. Demand continues to outpace home supply, and buyers are finding the home they want in a shorter amount of time. This continued to push median prices higher, putting sellers in a strong position.”
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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.
