Statewide home sales shifted back into positive territory in October following several months of declines and median prices continued to make year-over-year gains, according to Illinois REALTORS®.
Statewide home sales (including single-family homes and condominiums) in October 2017 totaled 12,796 homes sold, up 0.3 percent from 12,764 in October 2016.
The statewide median price in October was $185,000, up 3.9 percent from October 2016, when the median price was $178,000. The median is a typical market price where half the homes sold for more and half sold for less.
“The housing market cooled in some areas with the weather in October, but the underlying desire by buyers to get into a new home remains a constant,” said Matt Difanis, ABR, CIPS, GRI, president of Illinois REALTORS® and broker-owner of RE/MAX Realty Associates in Champaign. “The continued drop in the average time it takes to sell a home in the state coupled with an increase in median prices over last October shows that even in what’s traditionally a slower time many people are willing to wade into the market and make aggressive offers.”
The time it took to sell a home in October averaged 54 days, down from 60 days a year ago. Available housing inventory totaled 57,911 homes for sale, a 10.4 percent decline from October 2016 when there were 64,601 homes on the market.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.90 percent in October 2017, an increase from 3.81 percent the previous month, according to the Federal Home Loan Mortgage Corp. In October 2016, it averaged 3.47 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in October 2017 totaled 8,994 homes sold, up 0.3 percent from October 2016 sales of 8,969 homes. The median price in October 2017 was $222,500 in the Chicago PMSA, an increase of 3.5 percent from $215,000 in October 2016.
“While consumer sentiment about the economy appears positive, there is still hesitation about the housing market,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “However, mortgage applications have increased and prices and sales in both Illinois and Chicago increased on an annual basis, a trend that is forecast to continue into 2018.”
According to the data, forty-three (43) Illinois counties reported sales gains for October 2017 over previous-year numbers, including Rock Island County, up 19.5 percent with 135 units sold; DuPage County, up 5.3 percent with 1,066 units sold; and Madison County, up 1.0 percent with 304 units sold. Fifty-five (55) counties showed year-over-year median price increases including Peoria County, up 13.8 percent to $119,500; Lake County, up 11.1 percent to $227,750; and Sangamon County, up 5.0 percent to $132,450.
The city of Chicago saw year-over-year home sales hold steady in October 2017 with 2,047 sales, compared to 2,046 in October 2016. The median price of a home in the city of Chicago in October 2017 was $262,000, up 0.7 percent compared to October 2016 when it was $260,100.
“Steady seems to be the name of the game, and this fall is proving no different,” said Rebecca Thomson, president of the Chicago Association of REALTORS® and Vice President of Agent Development at @properties. “Although inventory continues to tighten, we now see an increase in new construction that is fueling price gains, particularly in the condo market. As we enter the holiday season, between the healthy economy and strong demand, these trends show little signs of slowing down.”
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 Nov. 7, 2017 for the period Oct. 1 through Oct. 31, 2017. 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.
Illinois REALTORS® is a voluntary trade association whose more than 47,000 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.