CHICAGO—The number of statewide home sales dipped again last month, but median prices also rose again, according to data from the Illinois Association of REALTORS®. Tight credit standards and lower inventory levels have made declining sales, at least on a year-over-year basis, and rising prices the norm for this year. July marks the 23rd consecutive month of annual price gains.
Furthermore, the shrunken inventory has also cut the average time it takes to sell a home. In July, it took 65 days on average, down 9.7% from 72 days last year. And the average time to sell in the Chicago area was 50 days, and just 43 days in the city of Chicago.
"Buyers are snapping up properties quickly, showing that the desire to own a home is undiminished by fewer homes on the market," says Phil Chiles, president of the Illinois Association of REALTORS® and broker-associate with the Real Estate Group in Springfield. "The high level of interest in buying is forcing prices higher, a trend we have seen through much of the year."
Statewide home sales, including condominiums, in July totaled 15,390 homes, down 6.5% from 16,465 in July 2013. And the statewide median price in July was $179,000, up 7.2% from July 2013 when the median price was $167,000. Sales also declined in the nine-county Chicago metro area. Home sales in July totaled 11,125 homes sold, down 8.0% from July 2013 sales of 12,090 homes. And the median price in metro area was $218,000, up 9.0% from $200,000 in July 2013.
“While sales in July were weaker than last year, they are still stronger for the same month in any other year between 2008 and 2012,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. But “once again, median prices are still growing robustly.”
“The improving national job market is reflected in a more confident attitude on the part of consumers and home builders, although recent employment growth in Illinois has underperformed both the Midwest and the nation,” Hewings adds. “If the current foreclosure inventory continues to decrease at recent rates, then the inventory will return to pre-recession levels by the end of the year in Illinois.”
The city of Chicago saw an 8.2% year-over-year decrease in home sales last month with 2,664 sales, down from 2,902 in July 2013. And the median price rose to $270,000 versus $250,000 in July 2013, an annual increase of 8.0%.
“Inventory remains low even when the summer season is popular with sellers looking to move,” says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. “Now is an ideal time for sellers to contemplate their own long-term plans and consider preparing their home for a fall sale. Interest rates remain historically low, and buyers are still seeking homes in a market with a shortage of housing 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.
