Regional Spotlight: Illinois Median Sale Price Off 3.0% at $193,000

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RISMEDIA, Jan. 1, 2008-In November the median home sale price fluctuated in a modest range across Illinois unlike many areas of the country that have seen steep price depreciation.

According to the Illinois Association of Realtors(R) latest report, the Chicago PMSA median home sale price in November was $247,000, up 0.8% from $245,000 in November 2006. Statewide, the median sale price was $193,000 for the month, down 3.0% from $199,000 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 November was $253,131, up 1.3% from $249,799 a year ago. The average home sale price for the Chicago PMSA was $323,458, up 4.4% from $309,832 in November 2006.

“People have been sitting on the sidelines so there remains a lot of selection on the market and it will continue to be a good market for buyers in 2008 with mortgage interest rates still at historically low levels,” said Realtor Kay Wirth, president of the Illinois Association of Realtors. “Illinois has been averaging a 70 percent homeownership rate and sheer demand is a factor that bodes well for a stabilizing housing market next year including younger buyers who form a powerful demand group. Buyers with good credit have access to many conventional financing options and first-time buyer programs have expanded in Illinois.”

Statewide there were 9,021 total home sales (which include single-family homes and condominiums) in November 2007, down 20.4% from November 2006 which logged 11,332 home sales. Year-to-date, sales were down 16.3% to 131,497 homes sold January through November 2007 compared to 157,183 homes sold during the same period last year.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.25% in November 2007, down 0.16 points from the average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in November it averaged 6.27%.

In the Chicago PMSA, home sales totaled 5,772 in November 2007, down 23.9% from 7,583 home sales in the same month last year. Year-to-date, sales were down 19.6% to 87,624 homes sold January through November 2007 compared to 108,997 homes sold during the same period last year.

“The slower growth rate for jobs in Illinois, especially outside Chicago, continues to be a drag on the state’s recovery from the 2000 recession,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “It is hoped that the recent declines in interest rates (mortgage rates are now as low as they were in September 2005) may help stimulate the housing market. In the interim, consumer sentiment is moving to a cautious mode.”

In the latest forecast from the National Association of Realtors(R), senior economist Lawrence Yun said: “All real estate is local. Some areas will see housing activity and prices moving up and some moving down. Local real estate professionals are critical in properly ascertaining local market conditions. In the aggregate, the national home sales and home prices will be very similar in 2008 as in 2007.”

“The FHA Modernization Act of 2007, passed on December 14 by the U.S. Senate, will help protect the interest of current and future homeowners by giving borrowers a safer alternative to riskier mortgage products while also helping many homeowners who may be facing foreclosure,” said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake. “We are hopeful the House and Senate will agree to send the bill on to President Bush as it will help first-time home buyers, minority buyers and people who do not qualify for conventional mortgages.”

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.

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