CHICAGO—The National Association of REALTORS® recently released data that show nationwide home sales were lower this year than last, and the significant slowdown has hit Illinois as well. The number of statewide home sales dipped last month compared to the same period last year, but in a familiar pattern median prices rose, according to data from the Illinois Association of REALTORS®. November marks the 27th consecutive month of annual price gains.
“Sellers continue to see strong price gains as we move toward closing out 2014,” says Jim Kinney, president of the Illinois Association of REALTORS® and vice president of luxury sales for Baird & Warner in Chicago. “The year has seen a significant rebound in the real estate market, and the numbers this month provide optimism that price gains will continue into the New Year.”
Statewide home sales, including condominiums, in November totaled 9,915 homes, down 9.5% from 10,950 in November 2013. And the statewide median price last month was $155,000, up 6.9% from November 2013 when it was $145,000. Sales also declined in the nine-county Chicago metro area. Home sales in November totaled 7,090, down 8.8% from last year when 7,777 homes were sold. And the median price in metro area was $182,000, up 7.1% from $169,900.
“Illinois' fourth coldest November on record had a negative effect on housing sales,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “While prices continue to improve, the sales forecast for the next three months indicates declines on a monthly and annual basis. Foreclosure sales continue to decline as a share of total sales; good news on the one hand but extending the time for return to pre-bubble levels.”
The city of Chicago witnessed a particularly steep drop. It saw an 11.5% year-over-year decrease in home sales last month with 1,632 sales, down from 1,844 in November 2013. And the median price rose to $230,000 versus $200,000 in September 2013, an annual increase of 15%.
"As we round out the year, higher median sales prices and low inventory continue to be the market pattern. Buyers are primed to invest in the home that fits their needs despite facing fewer choices," says Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. "Predictions that interest rates will pick up next year should drive both potential buyers and existing homeowners to take advantage now and seize the opportunity."
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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.
