Illinois housing market surges to ‘highest level in recent years’ in July

State News

A “For Sale by Owner” sign is posted in front of property in Monterey Park, California on April 29, 2020. – Home prices in the US grew in February to its highest level in over a year heading into the traditional Spring selling season but momentum in the nation’s housing market has been reversed due to the coronavirus pandemic. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)

SPRINGFIELD, Ill. (WMBD) — Home sales and median prices rose as Illinoisans continued to buy homes at record-breaking levels.

According to data from Illinois REALTORS, buyers quickly bought available homes due to historically low-interest rates.

Statewide home sales (including single-family homes and condominiums) totaled 19,024 homes sold in July, a 14.6 percent increase from 16,604 from July of 2019. The statewide median price in July was $234,900, which is a 7.3 percent increase from July of 2019 when the median price was $219,000.

“After a delayed start, Illinois’ summer housing market kicked off in earnest in July with strong home sales and price gains,” said Ed Neaves, president of Illinois REALTORS and designated managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “Buyers, perhaps driven by record-low mortgage rates, are eager to get into an increasingly competitive market and find a home.”

On average, the data shows it took just 50 days on average to sell a home in July. As far as available inventory goes, it totaled 41,779 homes for sale, indicating a 33.0 percent decrease from 62,338 homes last year.

According to the data, home sales in the Peoria MSA (which includes Marshall, Peoria, Stark, Tazewell, and Woodford counties) totaled 697 units. That’s a 28.8 percent increase while the median price was up 7.3 percent to $132,000; home sales in the Rockford MSA (Boone and Winnebago counties) totaled 575 units, a 16.4 percent increase while the median price increased 14.6 percent to $149,000.

Homeowners paid a monthly average commitment rate of 3.02 percent in July for a 30-year, fixed-rate mortgage. That’s a decrease from 3.16 percent the previous month, according to the Federal Home Loan Mortgage Corp. Last year, that number averaged 3.77 percent.

In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in July totaled 13,261, up 12.0 percent from July 2019 sales of 11,841 homes. The median price in July was $277,000 in the Chicago Metro Area, an increase of 6.9 percent from $259,000 in July 2019. 

“The Illinois and Chicago housing markets both recorded positive month-to-month and year-over-year increases in both prices and sales, reversing two months of declines in Illinois prices while Chicago prices continued their modest upward trend,” said Geoffrey J.D. Hewings, emeritus director of the Regional Economics Applications Laboratory at the University of Illinois. “The price forecasts for the next three months—August, September, and October—suggest positive changes in Illinois and Chicago based on median prices, but slightly negative ones for Illinois based on REAL’s Housing Price Index that takes into account housing characteristics.” 

The city of Chicago saw year-over-year home sales increase 0.6 percent with 2,725 sales in July, compared to 2,708 a year ago. The median price of a home in the city of Chicago in July was $330,000, up 7.5 percent from July 2019. 

“In July, we finally saw closed sales and median sales prices hold steady from the previous year, a great sign that the market is bouncing back from COVID-19,” said Maurice Hampton, president of the Chicago Association of REALTORS® and owner of Centered International Realty. “It is clear that homebuyers are still looking for more options, however, as inventory continued to decline by 13.2 percent.”

Sales and price information are generated by Multiple Listing Service data on closed sales reported by 26 participating Illinois REALTORS® local boards and associations including Midwest Real Estate Data LLC data as of Aug. 7, 2020, for the period July 1 to July 31, 2020. 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. 

Illinois housing stats, data, and the University of Illinois REAL forecast can be viewed at www.IllinoisRealtors.org/MarketStats

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