Illinois home sales were lower in June while median prices were relatively flat, a shift that could give homebuyers more buying power even as low inventory continues to affect the market, data from Illinois REALTORS® show.
Statewide home sales (including single-family homes and condominiums) in June totaled 16,579 homes sold, down 11.2 percent from 18,673 in June 2018.
The statewide median price in June was $225,000, up 0.2 percent from June 2018, when the median price was $224,500. The median is a typical market price where half the homes sold for more and half sold for less.
“The market choppiness that we have seen throughout the year continued in June, with home sales once again lagging previous-year numbers and sellers struggling to provide the number of homes consumers want,” said Ed Neaves, president-elect of Illinois REALTORS® and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “The good news for consumers is that median prices are not appreciating nearly as fast as they have in years past, so for the truly dedicated house-hunter there is opportunity.”
The time it took to sell a home in June averaged 45 days, the same as a year ago. Available inventory totaled 58,376 homes for sale, a 4.1 percent decline from 60,898 homes in June 2018.
According to the data, home sales in the Springfield MSA (Sangamon and Menard counties) totaled 306 units, a 2.7 percent increase while the median price was up 2.4 percent to $150,000; home sales in the Moline-Rock Island MSA (Henry, Mercer and Rock Island counties) totaled 217, a 3.3 percent increase while the median price was down 4.6 percent to $113,000.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.80 percent in
June, a decrease from 4.07 percent the previous month, according to the Federal Home Loan Mortgage Corp. In June 2018, it averaged 4.57 percent.
In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in June totaled 12,002, down 11.6 percent from June 2018 sales of 13,573 homes. The median price in June was $263,000 in the Chicago Metro Area, an increase of 0.2 percent from $262,500 in June 2018.
“Housing affordability is being discussed once again as a contributor to sales declines that are once again lower than those recorded last year for the same month,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Price increases in Chicago and Illinois last month were barely positive and the increase in apartment rentals and declines in consumer sentiment indices suggest that many potential home buyers are sitting on the sidelines, no doubt influenced by concerns about trade conflicts and the future growth of the economy.”
According to the data, twenty-nine (29) Illinois counties reported sales gains for June over previous-year numbers, including Sangamon County, up 6.5 percent with 297 units sold; and DeKalb County, up 2.6 percent with 160 units sold. Forty-eight (48) counties showed year-over-year median price increases including Kankakee County, up 10.3 percent to $170,950; and Madison County, up 5.3 percent to $135,500.
The city of Chicago saw year-over-year home sales decrease 13.3 percent with 2,766 sales in June, compared to 3,191 a year ago. The median price of a home in the city of Chicago in June was $319,900 up 1.6 percent compared to June 2018 when it was $314,900.
“We can’t escape the topic of tax increases right now, and prospective buyers are paying attention,” said Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “High assessments in the north, and tax increases expected in 2021, has made some leery. Still, the summer proves to be an active time for the Chicago housing market. For buyers, rates remain low and market time and inventory has increased, meaning there is more choice and more time to make key decisions. For sellers, prices remain relatively steady, and pricing appropriately is key.”
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 July 7, 2019 for the period June 1 through June 30, 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 www.illinoisrealtors.org/marketstats.