Homes sold faster and prices were stronger in July, but lower inventory continues to act as a drag on the market, according to Illinois REALTORS®.
Statewide home sales (including single-family homes and condominiums) in July 2016 totaled 16,108 homes sold, down 6.8 percent from 17,291 in July 2015.
The statewide median price in July was $199,000 up 4.7 percent from July 2015 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.
“The drop-off in home sales in July underscores the fact that a continued lack of inventory is plaguing those who are in the market for a new home,”said Mike Drews, GRI, president of Illinois REALTORS® and broker-associate with Charles B. Doss & Co. in Aurora. “These homebuyers face limited choices and higher prices as a result.”
The time it took to sell a home in July averaged 53 days, down from 59 days a year ago. Available housing inventory totaled 65,998 homes for sale, a 14.4 percent decline from July 2015 when there were 77,069 homes on the market.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.44 percent in July 2016, a decline from 3.57 percent the previous month, according to the Federal Home Loan Mortgage Corp. In July 2015 it averaged 4.04 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in July 2016 totaled 11,716 homes sold, down 7.3 percent from July 2015 sales of 12,645 homes. The median price in July 2016 was $238,000 in the Chicago PMSA, an increase of 5.8 percent from $225,000 in July 2015.
“In July, median prices continued to experience positive growth while sales recorded their first negative annual change in 2016,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “However, median prices are forecast to have positive annual growth over the next three months. In addition, the percentage of foreclosed sales among total sales was 9.7 percent, the lowest July reading since 2009.”
According to the data, thirty-three (33) Illinois counties reported sales gains for July 2016 over previous-year numbers, including Grundy County, up 15.4 percent with 75 units sold; McHenry County, up 7.2 percent with 599 units sold; and Madison County, up 4.0 percent with 334 units sold. Forty-four (44) counties showed year-over-year median price increases including Will County, up 11.8 percent to $212,500; Cook County, up 5.3 percent to $249,000; and Winnebago County, up 2.3 percent to $101,250.
The city of Chicago saw an 11.9 percent year-over-year home sales decrease in July 2016 with 2,714 sales, down from 3,082 in July 2015. The median price of a home in the city of Chicago in July 2016 was $290,000, up 1.8 percent compared to July 2015 when it was $285,000.
“If you have a home on the market, it’s selling at an incredible pace,”said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations at the Oakbrook-based Inland Real Estate Group of Companies, Inc. “In Chicago, the time to sell was just 38 days, and when you pair that number with double-digit annual decreases in inventory, it’s a market where sellers are reaping a premium.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of August 8, 2016 for the period July 1 through July 31, 2016. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. (Note: Due to a recent switch to a new multiple listing service, data for the Livingston County Board of REALTORS® is not included in the July report).
Illinois REALTORS® is a voluntary trade association whose more than 44,000 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 and the University of Illinois REAL forecast at www.illinoisrealtors.org/marketstats.