Regional Spotlight: Illinois Median Sale Price off 1.5% at $195,000

RISMEDIA, Nov. 29, 2007-The median home sale prices rose or remained even in the majority of Illinois counties in October with the Chicago Primary Metropolitan Statistical Area (PMSA) median sale price up 3.1% compared to a year ago. According to the Illinois Association of Realtors(R) latest report, the Chicago PMSA median home sale price in October was $250,000, up 3.1% from $242,500 in October 2006. Statewide, the median sale price was $195,000 for the month, down 1.5% from $198,000 a year ago. 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 October was $259,031, up 4.5% from $247,788 a year ago. The average home sale price for the Chicago PMSA was $328,057, up 9.0% from $301,007 in October 2006.

“The strength of the Midwest market is evident during this transition year for housing as we see prices in Illinois hovering about even and in many areas appreciating well. On average the value of a home nearly doubles every 10 years so homeownership over the long term remains a sound investment and a wealth-builder,” said Realtor Kay Wirth, president of the Illinois Association of Realtors. “Slower sales can be attributed to many factors which still include credit tightening and overall buyer wariness, but in Illinois of course we’re beginning to enter the holiday and winter seasons when a slowdown is to be expected.”

Statewide there were 10,043 total home sales (which include single-family homes and condominiums) in October 2007, down 23.1% from October 2006 which logged 13,067 home sales. Year-to-date, sales were down 16.1% to 122,394 homes sold January through October 2007 compared to 145,851 homes sold during the same period last year.

Comparing month-to-month, sales were down just 4.1% in October 2007 from September 2007 sales of 10,476 homes.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.41% in October 2007, unchanged from the average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in October it averaged 6.40%.

In the Chicago PMSA, home sales totaled 6,558 in October 2007, down 27.2% from 9,007 home sales in the same month last year. Year-to-date, sales were down 19.3% to 81,852 homes sold January through October 2007 compared to 101,414 homes sold during the same period last year.

“Chicago can anticipate median price increases of two to three percent for each of the next three months (compared to the month last year),” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Monitoring of housing-related sales (appliances, kitchenware, etc.) will provide some earlier indication of the degree to which consumers anticipate an easing of the downtown in the months ahead.” According to REAL, in 2007 Illinois has created 4,189 jobs each month on average, slower than the 5,342 average for 2006.

In the latest report from the National Association of REALTORS(R), senior economist Lawrence Yun said: “Home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued. The housing market correction is clearly focused on transaction volume and not in home prices. All real estate is local–conditions vary from one city to the next.” Yun also indicated the FHA market share for home purchases is expected to further accelerate in 2008 helping first-time buyers enter the market with a safer and lower interest rate mortgage product.

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 Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.