Illinois home sales headed slightly higher in July with median prices also outpacing the year before and homes selling quickly amid lower inventory, according to Illinois Realtors.
Statewide home sales (including single-family homes and condominiums) in July totaled 16,007 homes sold, up 0.1 percent from 15,999 in July 2017.
The statewide median price in July was $214,900, up 2.3 percent from July 2017, when the median price was $210,000. The median is a typical market price where half the homes sold for more and half sold for less.
"The flattening of sales in July points to sustained, chronic shortages in housing inventory in many of the state's markets," said Matt Difanis, ABR, CIPS, GRI, president of Illinois Realtors and broker-owner of RE/MAX Realty Associates in Champaign. "This relative lack of homes for sale in certain price bands is a continuation of the market dynamics which have been in place throughout 2018, and there's no immediate reason to expect a sudden departure from this in the near term for buyers and sellers."
The time it took to sell a home in July averaged 44 days, down from 47 days a year ago. Available inventory totaled 59,777 homes for sale, a 5.5 percent decline from 63,224 homes in July 2017.
According to the data, home sales in the Moline-Rock Island MSA (Henry, Mercer and Rock Island counties) totaled 256 units, a 25.5 percent increase while the median price was up 11.7 percent to $117,250; in the Bloomington MSA (McLean and Dewitt counties) sales were up 20.2 percent to 297 units sold and the median price climbed 4.9 percent to $169,999.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.53 percent in July, a decrease from 4.57 percent the previous month, according to the Federal Home Loan Mortgage Corp. In July 2017, it averaged 3.97 percent.
In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in July totaled 11,473 homes sold, down 0.5 percent from July 2017 sales of 11,534 homes. The median price in July was $252,000 in the Chicago Metro Area, an increase of 1.8 percent from $247,500 in July 2017.
“Inventory on the market continues to fall in both Illinois and Chicago while pending sales continue to show strong increases,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Longer-term consumer sentiment reflects the ongoing uncertainty about the outcome of trade negotiations although shorter-term sentiment continues to be positive.”
According to the data, fifty (50) Illinois counties reported sales gains for July over previous-year numbers, including Peoria County, up 25.7 percent with 274 units sold; and Kane County, up 2.3 percent with 787 units sold. Fifty-four (54) counties showed year-over-year median price increases including Kendall County, up 10.1 percent to $240,000; Will County, up 4.5 percent to $229,900; and Cook County, up 1.4 percent to $261,100.
The city of Chicago saw year-over-year home sales increase 1.1 percent with 2,728 sales in July, compared to 2,698 a year ago. The median price of a home in the city of Chicago in July was $309,000 up 3.0 percent compared to July 2017 when it was $300,000.
“This July outpaced last year’s, with a higher number of closing sales further contributing to the shrinking pool of inventory,” said Rebecca Thomson, principal of Thomson Real Estate Group and president of the Chicago Association of Realtors. "The summer market has some staying power, and if July’s numbers are any indication, buyers should expect a competitive market with fewer options, limited time to make decisions and steadily increasing prices.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 27 participating Illinois Realtors local boards and associations including Midwest Real Estate Data LLC data as of Aug. 7, 2018 for the period July 1 through July 31, 2018. 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.