Illinois Second Quarter Home Sales Gain 27.7 Percent

Statewide Median Price Stable at $160,000

SPRINGFIELD, Ill., Aug. 11 /PRNewswire/ -- Second quarter Illinois home sales figures reflect the continued positive impact of the tax credit and strong buyer market conditions while the statewide median price showed stability over the entire second quarter. According to the Illinois Association of REALTORS^® (IAR) second quarter 2010 report, Illinois home sales (which include single-family homes and condominiums) totaled 35,628 in the second quarter, up 27.7 percent from 27,890 home sales in the same period a year ago. The last quarter when sales totals were higher than second quarter 2010 was third quarter 2007 when home sales reached 39,904.

The second quarter statewide median home sale price was $160,000, up 0.3 percent from $159,500 in the second quarter of 2009. The median is a typical market price where half the homes sold for more, half sold for less.

"The first half of the year has solidly placed the Illinois housing market in a better position compared to a year ago with year-to-date sales up 26.3 percent through June and the year-to-date median price improved from a year ago. Buyers will find affordability levels very high at this time before the inevitable uptick in mortgage interest rates, which are currently at their lowest level in decades," said REALTOR® Mike Onorato, GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real Estate in Coal City. "We are looking to the economy now for more positive signs in terms of jobs and consumer confidence. These factors and foreclosures will have the biggest impact on housing in the second half."

The 2Q10 interest rate for 30-year, fixed-rate mortgages averaged 4.94 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 5.03 percent in the first quarter and down from 5.07 percent a year ago in 2Q09.

"I believe the housing market that really led the growth rates in the early part of this century are now very much tied to job growth. Most people are going to feel much better about making major purchases if they can have a sense that the private sector job growth is going to continue," said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. "As a result we will see a very strong relationship between home sales and job growth over the next six to 18 months, much more than we've seen in the past."

Hewings added: "The Illinois economy stumbled a little in June revealing little job change after five months of positive job growth. Illinois shed 200 jobs in June 2010 leaving employment unchanged compared with a revised 16,700 job gain in May. Most analysts suggest we are likely to see more muted job growth nationally and certainly in the state of Illinois."

In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) jumped 34.7 percent in the second quarter of 2010 to 23,735 homes sold compared to 17,620 home sales in the second quarter of 2009. Similar to statewide data, the last quarter when home sales for the region were higher than second quarter 2010 was third quarter 2007 when home sales reached 26,257.

The Chicagoland PMSA second quarter 2010 median price was $196,000, down 2.5 percent from $201,000 in the second quarter of 2009.

In the city of Chicago, total home sales (single-family and condominiums) in the second quarter were up 32.8 percent to 6,567 sales compared to 4,945 sales in the second quarter of 2009. The city of Chicago median price in the second quarter held steady at $230,000, even with the median price recorded a year ago.

"Chicago is seeing stabilization in the market, with the median home price of $230,000, and an increase in the number of units sold by nearly 33 percent from the same time in 2009," said REALTOR® Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey Real Living, Chicago. "Sellers are more realistic in the pricing of their homes, recognizing the pace and inventory of the current market. Interest rates remain at historic lows, and today for qualified buyers it is really a great time to buy."

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR^® 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.

The Illinois Association of REALTORS^® is a voluntary trade association whose 46,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS^® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

Detailed second quarter 2010 Illinois home sales data can be accessed at the IAR Web site, www.illinoisrealtor.org, on Market Stats.

SOURCE Illinois Association of REALTORS