In Chicagoland in March 2011, 5,324 single family homes and condos were sold, signaling a 41.3 percent increase over February 2011, according to the Chicagoland Primary Metropolitan Statistical Area (PMSA). Those numbers are reflected in the higher cost of home sales occurring throughout Chicagoland as well. In Chicago, the price of homes sold averaged $191,000 in March, marking a 7.6 percent improvement compared to February.
These improvements are only expected to continue, according to the director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois, Dr. Geoffrey J.D. Hewings. He predicts that home sales volume will grow over the next three months at a monthly rate of seven to 23-percent in Chicagoland and 10 to 15 percent in the rest of Illinois.
Despite these strides in the right direction, home sales are still not at the levels they were last year, largely due to the 2010 tax credit. Even so, the average selling price of a Chicago condo is on the rise, moving from $267,500 price in March 2010 to $275,000 in March 2011. If this trend continues, president of the Chicago Association of Realtors Mabel Guzman believes that more consumer-friendly lending options will become available to qualified buyers.
Historically, home sales typically rise between February and March, reflecting the seasonal nature of the home buying industry. Other factors that led to this increase in home sales include low interest rates and lower-than-average home prices.