Illinois median home prices showed strong gains in January compared to previous-year levels while statewide home sales decreased during the same period, according to Illinois REALTORS®.
Statewide home sales (including single-family homes and condominiums) in January 2018 totaled 8,156 homes sold, down 6.1 percent from 8,683 in January 2017.
The statewide median price in January was $185,000, up 8.2 percent from January 2017, when the median price was $171,000. The median is a typical market price where half the homes sold for more and half sold for less.
“January homebuyers faced a daunting combination of dwindling inventories and severe winter weather,” said Matt Difanis, ABR, CIPS, GRI, president of Illinois REALTORS® and broker-owner of RE/MAX Realty Associates in Champaign. “Those buyers who were successful in finding a home had to move quickly to make an offer and were definitely willing to pay more.”
The time it took to sell a home in January averaged 65 days, down from 69 days a year ago. Available housing inventory totaled 45,726 homes for sale, a 12.0 percent decline from January 2017 when there were 51,978 homes on the market.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.03 percent in January 2018, an increase from 3.95 percent the previous month, according to the Federal Home Loan Mortgage Corp. In January 2017, it averaged 4.15 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in January 2018 totaled 5,777 homes sold, down 8.0 percent from January 2017 sales of 6,277 homes. The median price in January 2018 was $224,000 in the Chicago PMSA, an increase of 7.2 percent from $209,000 in January 2017.
“While prices and month-over-month sales are forecast to increase over the next three months, there is some concern about the continuing inventory challenge,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois. “However, the pending sales index in January found more homes under contract than a year ago.”
According to the data, thirty-two (32) Illinois counties reported sales gains for January 2018 over previous-year numbers, including Peoria County, up 20.0 percent with 144 units sold; Madison County, up 17.8 percent with 212 units sold; and Sangamon County, up 6.7 percent with 143 units sold. Fifty (50) counties showed year-over-year median price increases including Will County, up 13.5 percent to $210,000; Cook County, up 7.1 percent to $225,000; and Champaign County, up 1.8 percent to $141,000.
The city of Chicago saw year-over-year home sales decline 10.2 percent in January 2018 with 1,414 sales, compared to 1,574 in January 2017. The median price of a home in the city of Chicago in January 2018 was $265,000, up 3.9 percent compared to January 2017 when it was $255,000.
“Based on the present trends in the housing market, we anticipate a competitive spring for buyers,” Rebecca Thomson, president of the Chicago Association of REALTORS® and Vice President of Agent Development at @properties, said. “With decreasing market time, sellers will need to be mindful of pricing strategically. If their home is not moving quickly, a proactive price adjustment may help them protect their overall investment without risking the stigma of a longer-than-average market time. With how quickly inventory is moving, an overpriced listing could get left behind.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 27 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Feb. 7, 2018 for the period Jan. 1 through Jan. 31, 2018. 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.
Illinois REALTORS® is a voluntary trade association whose more than 47,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois 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.
Find Illinois housing stats, data, the University of Illinois REAL forecast and more at www.illinoisrealtors.org/marketstats.