Regional Spotlight: Illinois Median Sale Price Up 1.2% to $212,500 in August

RISMEDIA, Sept. 26, 2007-The Illinois median home sale price held strong in August while sales were lower than last year at this time. According to the Illinois Association of REALTORS(R) latest report, the Illinois median home sale price in August was $212,500, up 1.2% from $210,000 in August 2006. The median is a typical market price where half the homes sold for more, half sold for less. The statewide average home sale price in August was $275,612, up 2.6% from $268,709 a year ago.

There were 14,349 total home sales (which include single-family homes and condominiums) in August 2007, 17.9% below August 2006, which logged 17,467 home sales. Year-to-date, sales were down 14.6% to 101,737 homes sold January through August 2007 compared to 119,190 homes sold during the same period last year.

“While buyers with good credit have options out there for financing, the credit crunch combined with more hesitant buyers waiting out all the mixed messages on the housing market took a toll on sales in August,” said Kay Wirth, president of the Illinois Association of REALTORS(R). “Mortgage interest rates remain attractive in the mid-six percent range and Illinois recently rolled out the Assets Illinois Homeownership Project and I-Loan 40 Mortgage program to help first-time buyers join the homeownership ranks.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.58% in August 2007, down 0.16 points from the 6.74 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in August it averaged 6.57%.

The median home price for the Chicagoland Primary Metropolitan Statistical Area (PMSA) was $266,500, up 4.9% from $254,000 in August 2006. The average home sale price for Chicagoland was $343,079, up 5.0% from $326,755 in August 2006.

In the Chicagoland PMSA, home sales totaled 9,736 in August 2007, down 20.1% from 12,192 home sales in the same month last year.

“Home prices in Illinois remain a positive in the market and we can point to downstate Champaign and Sangamon counties as bright spots in August with sales increases compared to a year ago,” said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake. “REALTORS(R) know that all real estate is local and you have to gauge a local community’s economic factors to determine the best pricing and marketing strategies.”

In the latest forecast from the National Association of REALTORS(R), senior economist Lawrence Yun said: “Unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September. The mortgage markets will calm further in the months ahead, but it’s important to underscore the fact that conventional loans — the vast majority of financing — are available to credit-worthy borrowers.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR(R) 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.

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