CHICAGO—Homes across the state sold faster and for more money in July, but lower housing inventory drove year-over-year sales lower, according to a new report from Illinois REALTORS®. And now economists fear income growth in IL may not keep pace with escalating prices.
Available housing inventory totaled 60,541 homes for sale, a 12.6% decline from July 2016. Statewide home sales in July totaled 15,677, down 4.3% from 16,375 in July 2016. The statewide median price in July was $210,000, up 5.8% from July 2016, when the median price was $198,500.
“For more than two years, Illinois' housing market has seen decreases in the number of homes for sale on an annual basis,” says Doug Carpenter, president of the realtors' association and managing broker of Coldwell Banker The Real Estate Group in Orland Hills. “This chronic lack of inventory is making the market challenging for all buyers, but particularly for those looking to purchase a more modestly-priced home.”
The time it took to sell a home in July averaged 47 days, down from 53 days a year ago.
In the nine-county Chicago metro area, home sales in July totaled 11,322 homes sold, down 4.9% from July 2016 sales of 11,905 homes. The median price in July was $248,000 in the Chicago region, an increase of 4.4% from $237,500 in July 2016.
“The concerns this month center on the continuing low inventory rates and the potential dampening of demand caused by real income growth failing to keep pace with rising house prices,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Housing affordability is once again becoming a concern, especially for those seeking to enter the housing market.”
The city of Chicago saw a 5.7% year-over-year home sales decline in July with 2,621 sales, down from 2,780 in July 2016. The median price of a home in the city of Chicago in July was $301,000, up 3.8% compared to July 2016 when it was $290,000.
“We're in a market where even the first-time homebuyers are sophisticated and educated, and they are willing to seek out the most appropriate home for their financial situation, rather than make a rash or imprudent decision,” says Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Our continued decline in the days on the market until a sale reflects the fact that properties priced appropriately are selling rapidly. In Chicago, inventory isn't as restricted in certain price ranges; there continues to be plenty of opportunity at different price points, particularly for move-up buyers.”
CHICAGO—Homes across the state sold faster and for more money in July, but lower housing inventory drove year-over-year sales lower, according to a new report from Illinois REALTORS®. And now economists fear income growth in IL may not keep pace with escalating prices.
Available housing inventory totaled 60,541 homes for sale, a 12.6% decline from July 2016. Statewide home sales in July totaled 15,677, down 4.3% from 16,375 in July 2016. The statewide median price in July was $210,000, up 5.8% from July 2016, when the median price was $198,500.
“For more than two years, Illinois' housing market has seen decreases in the number of homes for sale on an annual basis,” says Doug Carpenter, president of the realtors' association and managing broker of Coldwell Banker The Real Estate Group in Orland Hills. “This chronic lack of inventory is making the market challenging for all buyers, but particularly for those looking to purchase a more modestly-priced home.”
The time it took to sell a home in July averaged 47 days, down from 53 days a year ago.
In the nine-county Chicago metro area, home sales in July totaled 11,322 homes sold, down 4.9% from July 2016 sales of 11,905 homes. The median price in July was $248,000 in the Chicago region, an increase of 4.4% from $237,500 in July 2016.
“The concerns this month center on the continuing low inventory rates and the potential dampening of demand caused by real income growth failing to keep pace with rising house prices,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Housing affordability is once again becoming a concern, especially for those seeking to enter the housing market.”
The city of Chicago saw a 5.7% year-over-year home sales decline in July with 2,621 sales, down from 2,780 in July 2016. The median price of a home in the city of Chicago in July was $301,000, up 3.8% compared to July 2016 when it was $290,000.
“We're in a market where even the first-time homebuyers are sophisticated and educated, and they are willing to seek out the most appropriate home for their financial situation, rather than make a rash or imprudent decision,” says Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Our continued decline in the days on the market until a sale reflects the fact that properties priced appropriately are selling rapidly. In Chicago, inventory isn't as restricted in certain price ranges; there continues to be plenty of opportunity at different price points, particularly for move-up buyers.”
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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.
