Illinois home sales increase by month, but decline for the year

SPRINGFIELD - The month of May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price, according to the Illinois Association of Realtors report released on Tuesday.

Total home sales, including single-family and condominiums, were up 19.3 percent in May to 8,945 homes, compared to 7,501 homes sold in April.

But compared to a year ago, home sales were down 21 percent from May 2008 when sales were 11,326.

"We are seeing more activity in the housing market with increased listings, more activity at showings, a surge in interest from first-time buyers as well as some improvement in time on market," association President Pat Callan said in a statement. "First-time homebuyers who want to take advantage of the $8,000 tax credit need to be aware that the purchase has to close no later than November 30 given the December 1 cut-off under current guidelines by the federal government. That means being under contract by early fall."

Mortgage interest rates are another factor for moving swiftly in this market. They remain at historic lows but where they will be in coming months is uncertain, said Callan, who also heads the Realty Executive Premiere office in Wheaton.

The Illinois median price in May was $158,000, up 4.5 percent from $151,200 in April 2009; it was down 16 percent from $188,000 a year ago in May 2008. The median is a typical market price where half the homes sold for more, half sold for less.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.89 percent in May, up slightly from the 4.85 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 6.04 percent.

"Month-to-month sales have recorded increases for the months of March, April and May and this is expected to continue into June,"Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois, said in a statement. "The modest recovery in housing prices and sales has been constrained by the job losses in the economy as a whole. A sustained housing recovery is still not within sight and much will depend on the degree to which federal stimulus funds and the resolution of the state's budget generate a much needed boost to employment."

In the Chicago and suburban metro area, home sales were up 18.7 percent to 5,634 homes sold in May, compared to 4,747 home sales in April. Sales were down 18.7 percent from 6,927 home sales in May 2008.

The median home sale price for the Chicago and suburban metro area was $200,000 in May, up 4.2 percent from $192,000 in April. The median price was down 20.3 percent from $251,000 in May 2008.

In Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales, compared to April sales of 1,378. Sales were down 27.5 percent from 2,119 homes sold in May 2008.

Also in Chicago, the median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.

The Chicago area includes counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Nationwide, previously occupied home sales rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best. The National Association of Realtors said Tuesday that home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million last month, from a downwardly revised pace of 4.66 million in April. Prices, meanwhile, dropped by 16.8 percent from a year ago.

The results missed economists' expectations. Sales had been expected to rise to an annual pace of 4.81 million units, according to Thomson Reuters. The median sales price plunged to $173,000, down from $207,900 in the same month last year, but up from $166,600 in April.

Associated Press contributed to this story.

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