Illinois homes sales were on the rise last month for the fourth consecutive month.
According to the Illinois Association of Realtors latest report, statewide home sales (including single family and condominiums) in May 2011 totaled 9,736 homes sold, up 13.9 percent from 8,546 sales in April 2011; sales were down 16.8 percent from 11,705 homes sold in May 2010.
The median price for a home in May was up $140,000 up 2.9 percent from $136,000 in April 2011. However these prices are still down 10.8 percent from last May when the median price was $157,000.
In Chicago, year-over-year median price for single family homes and condominiums in May 2011 was $238,450 up 3.7 percent compared to $230,000 in May 2010; it was 16.0 percent higher compared to the previous month of April 2011 when it was $205,500. For condominiums specifically, the median price reached $299,000 in May 2011, up 10.3 percent year-over-year from $271,150 in May 2010, as stated in the IAR Press Release.
Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois estimates that prices will continue to increase this summer too.
“According to our forecast, annual sales rates will turn positive for both Illinois and the Chicago region in July and August, a 22-25 percent increase statewide and 25 to 36 percent for Chicago,” Hewings said. “This means the effect of the homebuyer tax credit will finally fade out in Illinois during the summer. Median prices for June, July and August are expected to be higher than May in both Illinois and the Chicago region.”
Thirty-six of 100 Illinois counties reporting showed year-over-year median price increases or no change for the month of May including Grundy, up 3.2 percent to $150,100; LaSalle, up 11.0 percent to $102,125; Sangamon, up 10.4 percent to $139,900; and Stephenson, up 23.4 percent to $97,500.
Sheryl Grider Whitehurt, president of the Illinois Association of Realtors and Development and Operations Coordinator for Traders Realty in Peoria explains that while numbers are on the rise, lending requirements are still a big road block for selling homes.
“The trend in rising home sales and median prices is a positive direction for the housing market as a whole,” Whitehurt said. However, “A return to more robust yet responsible lending will result in more closed transactions and a stronger economy.”