RASI: Southwestern Illinois residential market showing strong growth over last year
By ALAN J. ORTBALS
The residential real estate market is strong in Southwestern Illinois, according to Deb Treat Frazier, association executive of the Realtor Association of Southwestern Illinois.
“The economy is doing so well and continuing to improve; consumer confidence is improving; and the already low interest rates dropped even further after the Brexit vote in the UK,” Frazier said.
RASI covers Monroe, St. Clair, and Randolph Counties. Frazier said that the median home price for all three counties rose in June 2016 compared to June 2015.
The median home price for St. Clair County recorded a 7.8 percent increase in June 2016 compared to June of last year. In that same comparison, Randolph County reported an 8.8 percent increase, while Monroe County reported an 18.5 percent increase. The June 2016 median home price for Monroe County was $229,000, which is the highest recorded median home price for that County for June in last five years. Similarly, St. Clair County also reported the highest recorded median home price for that county in June for the last five years. The statewide median home price followed suit, as the Illinois Realtors reported a 1.4 percent increase in median home price in June 2016 compared to June 2015.
Not only are home prices on the rise but sales are occurring more quickly as well, according to Frazier. It took Realtors in St. Clair County 56.5 percent less time to sell a home in June 2016 over June of last year. The average days homes were on the market in that county in June 2016 was 69, compared to 108 days in June 2015. Clinton County reported a 148 percent decrease in the days on market in that time comparison. The Illinois Realtors stated that it took an average of 139 days to sell a home in June 2015, compared to 56 days in June 2016. The report also stated that the average days on market for home sold in Monroe County decreased 70.9 percent in June 2016 over June 2015.
St. Clair and Randolph Counties both recorded an increase in year-to-date home sales compared to June 2015. St. Clair County reported a 9.6 percent increase in year-to-date home sales, while Realtors in Randolph County sold 24.2 percent more homes. Randolph County also reported an increase of 61.5 percent in home sales in June 2016 compared to June of last year and Clinton County recorded a 20 percent increase in home sales of that same comparison.
“And, the hot market is causing a decline in inventory,” Frazier said. “Last year at this time we had a little over 5,500 active listings; right now we have about 3,700.”