Chicago Homebuyers Returning to the Market

More Chicagoland homes were sold last month than in any other month over the past five years.
According to the Illinois Association of REALTORS®, home sales in the Chicago metropolitan area surged 28.5 percent in August compared to the same month the previous year. The 9,240 homes sold last month marked the best month for sales volume around Chicagoland since 9,733 homes were sold in August of 2007.
chicago real estate for saleThe fact that home values are still falling around the area helped with sales, as the median price for metro Chicago real estate for sale last month was $170,000, a 3.8 percent drop from the $176,750 average in August 2011. Still, values are rebounding, and the median price for a home in the Chicago area is now $30,000 higher than the $140,000 median price recorded in January of this year.
“We continue to see strong sales despite uncertainty about the economy,” said Loretta Alonzo, CRB, GRI, president of the Illinois Association of REALTORS®.
The city of Chicago not only posted a 23.6 percent year-over-year increase in home sales last month, but the median price of a home sold in Chicago also went up, increasing 3.9 percent from $192,500 in August 2011 to $200,000 in August 2012.
“Continued signs of a turn-around are a reality in Chicago, as homes are selling and prices are stabilizing,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS®.
Statewide, Illinois home sales rose 23.7 percent in year-over-year results, which have improved for 14 straight months, but the median home price was $147,000, which is a drop of 0.7 percent from $148,000 in August 2011.
Nationally, the National Association of REALTORS® reports that U.S. home sales rose 7.8 percent last month to the highest level since May of 2010 when the federal home buyer’s tax credit incentive was alive and kicking.
“The housing market is steadily recovering with consistent increases in both home sales and median prices,” said Lawrence Yun, NAR chief economist. “More buyers are taking advantage of excellent housing affordability conditions.”