Illinois housing market swings into spring with jump in home sales, prices

The Illinois housing market had a strong showing in March with home sales climbing 9.6 percent over previous-year levels and the statewide median price surging 10.7 percent higher,according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in March 2017 totaled 13,274 homes sold, up 9.6 percent from 12,116 in March 2016.

The statewide median price in March was $189,900, up 10.7 percent from March 2016, when the median price was $171,500. The median is a typical market price where half the homes sold for more and half sold for less.

“Consumers this spring have no choice but to be nimble as they find fewer homes on the market and increased competition for those homes,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “Many of the REALTORS® I talk to are reporting an increase in multiple offer situations, which means buyers can’t dawdle when they find what they want and they may want to make sure any offer they bring is an aggressive one.”

The time it took to sell a home in March averaged 67 days, down from 77 days a year ago. Available housing inventory totaled 52,826 homes for sale, a 15.5 percent decline from March 2016 when there were 62,492 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.20 percent in March 2017, an increase from 4.17 percent the previous month, according to the Federal Home Loan Mortgage Corp. In March 2016 it averaged 3.70 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in March 2017 totaled 9,661 homes sold, up 13.1 percent from March 2016 sales of 8,540 homes. The median price in March 2017 was $231,000 in the Chicago PMSA, an increase of 10.0 percent from $210,000 in March 2016.

“In inflation adjusted terms, both the Illinois and Chicago housing markets have recovered to their pre-recession levels,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois. “The consumer indices still reflect a positive outlook on the economy although the Home Purchase Sentiment Index declined, reflecting some elevated concerns about job security.”

According to the data, fifty-two (52) Illinois counties reported sales gains for March 2017 over previous-year numbers, including McHenry County, up 31.1 percent with 468 units sold; Cook County, up 9.9 percent with 5,255 units sold; and Sangamon County, up 8.5 percent with 230 units sold. Fifty-six (56) counties showed year-over-year median price increases including St. Clair County, up 17.3 percent to $138,450; DuPage County, up 10.2 percent to $270,000; and McLean County, up 7.3 percent to $166,250.

The city of Chicago saw a 15.3 percent year-over-year home sales increase in March 2017 with 2,478 sales, up from 2,149 in March 2016. The median price of a home in the city of Chicago in March 2017 was $295,000, up 9.7 percent compared to March 2016 when it was $269,000.

“Home sales were stronger than usual throughout historically slower months, and now, with the spring market in full swing, the numbers are proving to be more robust than anticipated,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “As the economy improves, demand continues to grow, and while inventory shortages will possibly play a larger role, for now, we are seeing strong and favorable selling conditions, and those who are looking to buy a home should be prepared to move quickly and decisively.”

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 April 7, 2017 for the period March 1 through March 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 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.

Illinois home prices increase in February; sales lower amid tight inventory

Median home prices in Illinois rose 6.3 percent in February over previous-year levels while statewide home sales decreased 2.8 percent for the same period, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in February 2017 totaled 8,461 homes sold, down 2.8 percent from 8,704 in February 2016.

The statewide median price in February was $170,000, up 6.3 percent from February 2016, when the median price was $160,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Inventories plummeted in February, no doubt frustrating some potential buyers but creating opportunities for the sellers who did have properties on the market,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “As we move into the spring, more properties should come on the market, but it will take some time for supply and demand to find equilibrium.”

The time it took to sell a home in February averaged 74 days, down from 81 days a year ago. Available housing inventory totaled 51,227 homes for sale, a 14.9 percent decline from February 2016 when there were 60,168 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.17 percent in February 2017, an increase from 4.15 percent the previous month, according to the Federal Home Loan Mortgage Corp. In February 2016 it averaged 3.66 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in February 2017 totaled 5,891 homes sold, down 5.2 percent from February 2016 sales of 6,214 homes. The median price in February 2017 was $210,000 in the Chicago PMSA, an increase of 12.0 percent from $187,500 in February 2016.

“Prices continue to move in a positive direction,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “While consumer confidence reflects optimism about the economy, the housing inventory continues to shrink suggesting that while more optimistic, many homeowners are not yet tempted enough to consider moving to a larger or more expensive home.”

According to the data, forty-six (46) Illinois counties reported sales gains for February 2017 over previous-year numbers, including Rock Island County, up 74.3 percent with 122 units sold; Peoria County, up 13.0 percent with 148 units sold; and Kane County, up 0.3 percent with 385 units sold. Fifty (50) counties showed year-over-year median price increases including Lake County, up 28.0 percent to $215,000; Cook County, up 10.5 percent to $210,000; and McLean County, up 6.0 percent to $158,000.

The city of Chicago saw a 4.0 percent year-over-year home sales decrease in February 2017 with 1,505 sales, down from 1,567 in February 2016. The median price of a home in the city of Chicago in February 2017 was $246,000, up 4.2 percent compared to February 2016 when it was $236,000.

“We’re in an active home sales environment,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “We are seeing listings offered in advance of the spring market, with condos, in particular, benefiting from increased consumer confidence. The recent announcement of a rate hike, plus the hot stock market and higher wages, heralds an increase in home prices and a rapid decline in market time in the months to come.”

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 March 13, 2017 for the period Feb. 1 through Feb. 28, 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.

(Note: Due to technical difficulties the housing reports were compiled on March 13 instead of March 7).

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.

See, share the January Housing Market Report video


Illinois REALTORS® provides you with statewide monthly market analysis and breakdowns for Chicago and the Chicago PMSA, including a quick-hitting video with three REALTORS® who provide explanations of the January numbers and what they might mean for February and beyond.

The individuals are: Tim Ryan of Real People Realty in Mokena, Vicky Sampah of the Abri Group, LLC in Plainfield, and Carrie Bey-Little of Baird & Warner Real Estate in Glen Ellyn.

See it now at https://youtu.be/u6HJQlpzwLQ.

Illinois home sales, prices head higher in January

The start of a new year brought renewed interest from homebuyers who drove home sales and the statewide median price higher in January, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in January 2017 totaled 8,502 homes sold, up 1.2 percent from 8,404 in January 2016.

The statewide median price in January was $172,000, up 5.5 percent from January 2016 when the median price was $163,000. The median is a typical market price where half the homes sold for more and half sold for less.

“The bitter winter weather everyone anticipates in January never really materialized, and as a result it looks as if plenty of buyers were out looking for homes,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “Because inventories are still so tight, January was seen by many as a good opportunity to get out in advance of the busier spring selling season.”

The time it took to sell a home in January averaged 69 days, down from 79 days a year ago. Available housing inventory totaled 49,724 homes for sale, a 15.5 percent decline from January 2016 when there were 58,830 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.15 percent in January 2017, a decrease from 4.20 percent the previous month, according to the Federal Home Loan Mortgage Corp. In January 2016 it averaged 3.87 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in January 2017 totaled 6,159 homes sold, up 0.6 percent from January 2016 sales of 6,125 homes. The median price in January 2017 was $210,000 in the Chicago PMSA, an increase of 10.5 percent from $190,000 in January 2016.

“Illinois median prices have already recovered to the pre-bubble levels while those in the Chicago PMSA are very close,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Forecasts for median prices and the REAL Housing Price Indices (REAL HPI) also indicate moderate annual growth for both Illinois and the Chicago PMSA with a slightly stronger growth forecast by the REAL HPI for the next three months.”

According to the data, forty-three (43) Illinois counties reported sales gains for January 2017 over previous-year numbers, including Winnebago County, up 16.6 percent with 218 units sold; St. Clair County, up 15.4 percent with 165 units sold; and Cook County, up 4.1 percent with 3,493 units sold. Forty-nine (49) counties showed year-over-year median price increases including Lake County, up 15.4 percent to $225,000; Peoria County, up 14.0 percent to $112,900; and DuPage County, up 8.2 percent to $250,000.

The city of Chicago saw a 9.3 percent year-over-year home sales increase in January 2017 with 1,528 sales, up from 1,398 in January 2016. The median price of a home in the city of Chicago in January 2017 was $256,000, up 12.4 percent compared to January 2016 when it was $227,750.

“We came out of the gates blazing, with greater activity this January than in years past, as consumers emerged from the holidays educated, prepared and ready to make decisions,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Our year-over-year numbers continue to demonstrate the strength of the Chicago market, as properties are being snatched up at a pace rarely seen, with higher prices across the board and rising interest rates – trends that will continue (barring ongoing inventory concerns) into the active spring season.”

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 Feb 7, 2017 for the period Jan.1 through Jan. 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 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.

Video: State of Illinois Housing Market Outlook 2016-17

In 2016, yearly home sales tracked higher and median prices remained robust throughout the state even as low inventory, fluctuating mortgage rates and a contentious election season affected the market and overall economy. Watch a new video that highlights the state of the 2016 housing market and what lies ahead for 2017.