The impact of the COVID-19 pandemic was evident in May, driving Illinois home sales and inventory lower even though median prices remained stable, data from Illinois REALTORS® shows.
Statewide home sales (including single-family homes and condominiums) in May totaled 11,438 homes sold, down 33.9 percent from 17,293 in May 2019.
The statewide median price in May was $216,000, down 1.4 percent from May 2019, when the median price was $219,000. The median is a typical market price where half the homes sold for more and half sold for less.
“COVID-19 and a stay-at-home order continued to have a profound effect on the Illinois housing market in May, disrupting spring home sales and driving down available inventory for buyers,” said Ed Neaves, president of Illinois REALTORS® and designated managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “But there’s reason for optimism. Median prices remain stable and buyers and sellers will soon head back into the market as the state reopens.”
The time it took to sell a home in May averaged 53 days, an increase of 6.0 percent from the year before. Available inventory totaled 44,665 homes for sale, a 24.8 percent decline from 59,417 homes in May 2019.
According to the data, home sales in the Peoria MSA (Marshall, Peoria, Stark, Tazewell and Woodford counties) totaled 433 units, a 25.5 percent decrease while the median price was up 1.2 percent to $129,500; home sales in the Metro East MSA (Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair counties) totaled 733 units, a 20.1 percent decrease while the median price increased 0.6 percent to $148,900.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.23 percent in
May a decrease from 3.31 percent the previous month, according to the Federal Home Loan Mortgage Corp. In May 2019, it averaged 4.07 percent.
In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in May totaled 7,710, down 37.3 percent from May 2019 sales of 12,291 homes. The median price in May was $260,000 in the Chicago Metro Area, an increase of 0.2 percent from $259,500 in May 2019.
“After a two-month lag, the downturn in the economy filtered into the housing market,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois. “However, as expected by many analysts, prices have declined much less than sales, and forecasts point to slightly positive price increases over the next few months in Chicago.”
The city of Chicago saw year-over-year home sales decrease 43.6 percent with 1,666 sales in May, compared to 2,952 a year ago. The median price of a home in the city of Chicago in May was $315,000, unchanged from May 2019.
“In May we saw the impact of the prolonged stay at home order, with a sharp 43.6 percent decline in closed sales and 22.4 percent decline in inventory,” said Maurice Hampton, president of the Chicago Association of REALTORS® and owner of Centered International Realty. “Prices, however, remained steady from last year – a good indicator. We expect that, as Chicago progresses through reopening, the market will respond accordingly.”
Sales and price information are generated by Multiple Listing Service data on closed sales reported by 26 participating Illinois REALTORS® local boards and associations including Midwest Real Estate Data LLC data as of June 7, 2020 for the period May 1 through May 31, 2020. 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.
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 and the University of Illinois REAL forecast at www.IllinoisRealtors.org/MarketStats.