Regional Spotlight: Illinois Median Price Holds Steady in the Second Quarter of 2007

RISMEDIA, August 16, 2007—Most areas of the state saw modest increases in the median sale price in the second quarter with slower sales compared to last year. According to the Illinois Association of Realtors(R) (IAR) second quarter report, the median home sale price was $207,500, up 0.2% from $207,000 a year earlier. The median is a typical market price where half the homes sold for more, half sold for
less. The average sale price was $263,027, up 1.7% from $258,715 for the same period a year ago.

Total home sales (which include single-family homes and condominiums) totaled 43,080, down 16.1% from 51,332 home sales in the second quarter of 2006.

“Most counties reporting saw home sale prices stabilize or uptick year-over-year during this period, which is a good indicator that the housing market is healthy in Illinois. Much of the decline in sales can be attributed to the market’s transition back to a more normal pace as well as some uncertainty from potential buyers and sellers about the best time to enter the market,” said Robert Zoretich, president of the Illinois Association of Realtors. “Home sales should improve later this year from pent-up demand, steady job growth, and improved consumer confidence in the housing market.”

The second quarter interest rate for 30-year, fixed-rate mortgages averaged 6.40% in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was up from 6.24% in the first quarter and down from 6.69% second quarter 2006.

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois Realtor local boards and associations. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), total home sales (including single-family and condominiums) were down 19.0 percent in the second quarter to 29,061, compared to 35,889 home sales in 2006.

The median home sale price in the Chicagoland PMSA increased 2.6% to $256,400 in the second quarter of 2007 compared to $250,000 in the same period one year ago.

“Local market conditions are oftentimes different from what’s happening nationally, so it’s best to work with a real estate professional to determine timing, pricing and the best value,” said Zoretich, broker-owner of Zoretich Realty Group in Chicago.

Illinois’ economy continues to expand and homes sales are expected to pick up toward the end of the year according to the National Association of Realtors (R) (NAR) latest market outlook. “Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. With the population growing, the demand for homes isn’t going away — it’s just being delayed,” said Lawrence Yun, NAR senior economist.

Second quarter condo sales across the state were down 13.9% to 13,892 condos sold compared to 16,138 in 2006. The median price for a condominium in Illinois in the second quarter of 2007 was $223,000, up 4.2% from $214,000 a year ago.

In the Chicago PMSA, condo sales were down 14.1% to 13,284 units sold during the second quarter of 2007, compared to 15,469 in the same period of 2006. The second quarter condo median price was $229,000, up 5.0% from $218,000 in the second quarter of 2006.