Home sales in the nine-county Chicago area posted dramatic gains in May, rising 25.3 percent from May 2011, according to new data from the Illinois Association of Realtors.
Even more impressive, median price for the area was $170,000 in May, a 0.1 percent increase from last May and the first showing of year-over-year price gains for Chicago since March 2008.
Bob Floss, the president of the Chicago Association of Realtors, said several different groups are driving the huge uptick in consumer demand.
“First-time homebuyers, move-up buyers and investors are finding compelling pricing and historically low interest rates as a perfect incentive to buy now,” Floss said. “With a scarce supply of rental homes available and rents increasing across the city, those on the fence are using this market to make their mark and purchase a home. Realtors are optimistic the market is stabilizing and will continue to show affordable options be absorbed by homebuyers this year.”
Other important data from IAR included:
- For the city of Chicago, May’s sales were up 19.6 percent from last year, and median sale price was 6.8 percent higher than May 2011.
- Sales statewide posted their best May performance since 2007, with sales up 22.1 percent year-over-year and median price up 3.6 percent, or a $22,650 leap.
- 59 of 100 Illinois counties showed yearly increases in home sales, and 51 reported median price increases, including Cook (3.0 percent), Kane (9.2 percent) and McHenry (4.6 percent).
“If there was any uncertainty about whether the housing market was going to hold up as we moved deeper into the year, that’s been dispelled,” said Loretta Alonzo, IAR’s president. “To have such a strong statewide showing later in the spring selling season, and to see the Chicago area snap a 49-month trend of median price decreases is huge news. All the indicators seem to reflect a stabilizing housing market, which is a strong contributor to a broader economic recovery.”