Illinois median prices moved higher in August as statewide sales and available housing inventory decreased, data from Illinois REALTORS® show.
Statewide home sales (including single-family homes and condominiums) in August totaled 15,716 homes sold, down 6.7 percent from 16,852 in August 2018.
The statewide median price in August was $214,000, up 7.0 percent from August 2018, when the median price was $200,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Illinois saw a surge in median prices in the final month of summer,” said Ed Neaves, 2020 Illinois REALTORS® president and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “The resulting dip in inventory and sales numbers on an annual basis tell a tale of a market that is struggling to meet consumer demand in many areas as prospective homeowners scramble to take advantage of lower interest rates.”
The time it took to sell a home in August averaged 45 days, unchanged from a year ago. Available inventory totaled 60,149 homes for sale, a 5.1 percent decline from 63,389 homes in August 2018.
According to the data, home sales in the Decatur MSA (Macon County) totaled 146 units, a 39.0 percent increase while the median price was up 3.7 percent to $110,950; home sales in the Moline-Rock Island MSA (Henry, Mercer and Rock Island counties) totaled 242, a 2.5 percent increase while the median price remained the same at $110,000.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.61 percent in August, a decrease from 3.77 percent the previous month, according to the Federal Home Loan Mortgage Corp. In August 2018, it averaged 4.55 percent.
In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in August totaled 11,008, down 6.6 percent from August 2018 sales of 11,785 homes. The median price in August was $252,000 in the Chicago Metro Area, an increase of 3.9 percent from $242,500 in August 2018.
“While long-term consumer sentiment remains positive, the short-term outlook is cloudy,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “However, the Fannie Mae housing purchasing index remains strong in large part from expectations of declines in interest rates. Thus far, the impact on the Chicago and Illinois housing markets has been muted with modest price increases expected to continue.”
According to the data, thirty (30) Illinois counties reported sales gains for August over previous-year numbers, including Peoria County, up 4.7 percent with 310 units sold; and Kane County, up 0.7 percent with 774 units sold. Fifty (50) counties showed year-over-year median price increases including Winnebago County, up 7.3 percent to $235,000; and Cook County, up 3.2 percent to $255,000.
The city of Chicago saw year-over-year home sales decrease 7.7 percent with 2,543 sales in August, compared to 2,754 a year ago. The median price of a home in the city of Chicago in August was $289,900 up 3.5 percent compared to August 2018 when it was $280,000.
“There’s some hesitancy among consumers right now, with concerns regarding the yet-to-be-unveiled city budget, continued talks of a market downturn and ongoing international trade wars,” said Tommy Choi president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “However, the data reflect that the market has stabilized, and opportunities are still there, particularly as historically low mortgage rates persist. Market time is down, suggesting buyers who are looking to buy continue to act quickly, and median sales price has ticked up, so they’re willing to pay for what they want. Those in the market, but on the fence, will benefit from trusting their REALTOR® to understand pricing strategy and negotiation tactics.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 27 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Sept. 7, 2019 for the period Aug. 1 through Aug. 31, 2019. 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, the University of Illinois REAL forecast and more at https://www.illinoisrealtors.org/marketstats.