According to the Illinois Association of REALTORS®, Illinois home sales rose by 24.4 percent year-over-year in May and median home prices increased 6.9 percent.
Statewide home sales, including both single-family homes and condominiums, totaled 15,091 homes sold in May 2013, up from 12,130 in May 2012. This marks the strongest May since 2006, when 17,622 homes were sold statewide, and 23 consecutive months of year-over-year sales increases.
The median home sale priced statewide was $155,000 in May, up 6.9 percent from May 2012 when median home prices were $145,000. The median home sale price is a typical market price where half of the homes sold were sold for less and half sold for more.
“Buyers are still quite bullish when it comes to the housing market and the increase in median home prices reflects that strong demand,” said Michael D. Oldenettel, CRS, GRI, president of the Illinois Association of REALTORS® and Managing Broker/Owner with RE/MAX Results Plus in Jacksonville, Ill. “The fact that sales are approaching pre-recession levels is a positive sign that the market has rebounded.”
The inventory of homes for sale in May was 64,648 units, a 29 percent drop compared to last year’s 91,009 units. The time it takes to sell a home has also fallen with days on market averaging 83 days in May, down 19.4 percent from 109 days in May 2012.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales in May 2013 totaled 10,951 homes sold, up 29.3 percent from May 2012 sales of 8,469 homes.
The median price in May 2013 was $184,000 in the Chicago PMSA, up 8.2 percent from $170,000 in May 2012. Time on market dropped substantially in May with listings averaging 69 days until sale, a 25 percent drop compared to 92 days in May 2012.
“Another strong month for the housing market that, in some parts of the state, is showing very robust activity,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “All the indicators point to a strong three-month period of growth, even in median prices. Mortgage rates are starting to inch upwards but the rates are still attractive enough not to dampen the momentum.”
Fifty-nine of 102 Illinois counties reporting to IAR showed year-over-year home sales increases in May 2013. Forty-nine counties showed year-over-year median price increases including Kendall, up 14.1 percent to $180,250; Will, up 10.3 percent to $177,000; Cook, up 9.4 percent to $185,000; Boone, up 7.7 percent to $112,000; McLean, up 6.0 percent to $163,250; and Peoria, up 5.5 percent to $124,250.
The city of Chicago saw a 30 percent year-over-year home sales increase in May 2013 with 2,762 sales, up from 2,125 in May 2012.
The median price of a home in the city of Chicago in May 2013 was $234,000 up 17 percent compared to May 2012 when it was $200,000. Chicago condo prices also saw double-digit gains for the month, posting a 10.8 percent jump to $274,000. Average time on market in the city was 53 days, down 32.1 percent compared to 78 days last May.
“May market data continues to affirm that we are on the right track, and excitement is growing within the real estate industry,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “Recovery is uneven citywide, however. We still have concerns about some underperforming areas in Chicago. Home owners considering selling their homes should assess if today’s market is right for them. It could be a very good time to sell; in some communities, shorter market times paired with multiple offers make the climate ideal.”
Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of June 7, 2013 for the period May 1 through May 31, 2013. 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 41,000 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 to safeguard and advance the interest of real property ownership.