The Illinois real estate market continued to percolate in October as seasons changed, competition between buyers became more focused and homes sold quickly, according to data from Illinois REALTORS®.
Homes sold in an average of 28 days statewide in October 2021, compared to an average of 43 days in October 2020.
Statewide home sales (including single-family homes and condominiums) in October 2021 totaled 15,920 homes sold, down 11.0 percent from 17,889 in October 2020.
The statewide median price went up 5.4 percent in October 2021 compared to October 2020. The median is a typical market price where half the homes sold for more and half sold for less.
The number of homes for sale declined to 29,456, a 28.7 percent drop compared to October 2020 when 41,320 homes were on the market.
“As we get closer to the holidays and temperatures cool, it appears that some traditional home buyers may think it’s best to delay their search until 2022,” says Ezekiel “Zeke” Morris, President of Illinois REALTORS® and designated managing broker of EXIT Strategy Realty/EMA Management on the South Side of Chicago. “But prospective home buyers should still consider seizing the opportunity now to secure new homes while they can reap the benefits of lower interest rates.”
According to the data, home sales in the Kankakee MSA (Kankakee County) totaled 122 sales, a zero percent increase while the median price rose 11.6 percent to $182,500. In the Carbondale-Marion MSA (Carbondale and Marion counties) home sales totaled 144, a zero percent increase. The median price decreased 5 percent to $129,700.
“Again, this month the market exhibits positive growth in prices combined with a decline in the number of sales,” said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration. “Surveys provide mixed evidence on consumer sentiment, with some indicating an increase this month in consumer confidence in the economy and others indicating a decrease. Prices are expected to continue to increase for the next three months while the number of sales is expected to decrease again.”
Last month, 11,149 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, an 11.6 percent decrease from the 12,613 homes sold in October 2020.
In the Chicago Metro Area, the median home sale price in October 2021 was $289,745, an increase of 5.7 percent from $274,000 in October 2020.
In the city of Chicago, home sales (single-family and condominiums) in October 2021 totaled 2,417 homes sold, down 5.9 percent from October 2020 sales of 2,568 homes.
The median price of a home in Chicago in October 2021 was $312,000, down 1.0 percent compared to October 2020 when it was $315,000.
“Real estate has always had an element of seasonality, and that’s what the data reflects from October: seasonality coming back into play after so much pent-up demand over the past year and a half,” said Antje Gehrken, president of the Chicago Association of REALTORS® and president and designated managing broker of A.R.E. Partners. “The market remains relatively strong and healthy, even compared to before the pandemic, despite concerns about continued inventory strain.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 23 participating Illinois REALTORS® local boards and associations including Midwest Real Estate Data LLC data as of Nov. 7, 2021, for the period Oct. 1 through Oct. 31, 2021. 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.
Based on the Federal Home Loan Mortgage Corp. data, the monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.07 percent in October 2021, an increase from 2.90 percent the previous month. The average was 2.83 percent in October 2020.
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 http://www.illinoisrealtors.org/marketstats/.