Year-over-year home sales for both Chicago and Illinois rose in September, continuing a familiar scenario – impressive sales clashing with negative pricing data.
According to data provided by the Illinois Association of Realtors (IAR), city of Chicago sales last month were up 6.8 percent from September 2010, and median price was also up by 5.6 percent, rising from $180,000 to $190,000.
“September home sales in the city of Chicago show signs of stabilization, with an increase in the units sold for both single family and condominiums,” said Bob Floss, president of the Chicago Association of Realtors.
Pricing was not as positive for the nine-county Chicago area, though. Sales were up 13.3 percent year-over-year, but the area continued to struggle with pricing, as median price declined by 8.6 percent from last September. The most recent Case-Shiller Index, which looked at home prices in July, posted a 6.6 point decline for Chicago area home prices.
Statewide statistics were very much in the same boat. Sales were up 13.5 percent from September 2010, but median price in September was $136,850, down 5.6 percent from $145,000 in September 2010.
Loretta Alonzo, the president of the IAR, was tepid with the data, expressing optimism for the sales but concern that low prices and rates are not spurring investment.
“Home sales are up significantly from last year and that’s a welcome signal for the Illinois housing market; still we would expect to see even more people taking advantage of these excellent affordability conditions with low mortgage interest rates,” Alonzo said.. “The slow economy and job recovery are severe drags on the market, plus many able buyers are hitting roadblocks on financing a home purchase due to the overcorrection in mortgage underwriting requirements. The fact that FHA home loan limits lowered on Oct. 1 for Chicago area counties and several downstate counties is another blow for would-be buyers.”