Median prices for homes have moved higher recently as statewide sales and available housing inventory decreased, according to data released recently from Illinois Realtors.
The latest numbers, released in late November, reflect sales in the month of October.
Statewide home sales – including single-family homes and condominiums – during the month of October totaled 12,914 homes sold, down 2.9% from 13,305 in October 2018. The statewide median price in October was $200,000, up 5.3% from October 2018, when the median price was $190,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Consumers sent a clear message they were willing to pay more to get into a home as we enter the final quarter of the year,” said Ed Neaves, president of Illinois Realtors and designated managing broker of Berkshire Hathaway Home Services Snyder Real Estate in Bloomington.
“The result of this activity is continued, sustained pressure on those who want to buy a home, but who must select from a diminished number of listed properties. These individuals face a choice of moving quickly and paying more, or sitting tight and waiting for additional properties to come on the market,” Neaves continued.
According to the October report, the time it took to sell a home in Illinois averaged 53 days, an increase of 1.9% from the year before. Available inventory totaled 58,561 homes for sale, a 5.5% decline from 61,992 homes in October 2018.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.69% in October, an increase from 3.61% the previous month, according to the Federal Home Loan Mortgage Corp. In October 2018, it averaged 4.83%.
In the nine-county Chicago Metro Area, which includes Grundy County, sales for single-family homes and condominiums in October totaled 8,889, down 3.3% from October 2018 sales of 9,188 homes. The median price in October was $240,000 in the Chicago Metro Area, an increase of 4.3% from $230,000 in October 2018.
The Chicago Metro Area, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
“Continuing a pattern of the last several months, median prices have increased. Sales declined year-over-year in October,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Affordable inventory remains a problem even with low interest rates tempting potential buyers back into the market.”
The city of Chicago saw year-over-year home sales decrease 2.8% with 2,048 sales in October, compared to 2,108 a year ago.
The median price of a home in the city of Chicago in October was $275,356 up 1.4% compared to October 2018 when it was $271,500.
“Despite some local political uncertainty, Chicago’s housing market remains active,” said Maurice Hampton, president of the Chicago Association of Realtors and owner of Centered International Realty. “We’re welcoming in a new generation of homebuyers incentivized by rates and sales prices that have grown but remain reasonable. Sellers and buyers alike should be encouraged as we enter the holiday season, and there continue to be opportunities on both ends of the deal. Work with a Realtor to price smart and negotiate.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 26 participating Illinois Realtor local boards and associations including Midwest Real Estate Data LLC data as of Nov. 18 for the period Oct. 1 through Oct. 31.
Illinois Realtors is a voluntary trade association whose more than 50,000 members are engaged in all facets of the real estate industry.
In addition to serving the professional needs of its members, Illinois Realtors works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
Find Illinois housing stats, data, the University of Illinois Real forecast and more at www.illinoisrealtors.org.