Finally, the Illinois Association of Realtors is out with the October sales data.
From the Illinois Association of Realtors:
The city of Chicago saw a 7.5 percent year-over-year home sales increase in October 2013 with 2,231 sales, up from 2,076 in October 2012.
The city of Chicago continues to see a steady market increase in median home pricing to $218,500 in October 2013 versus $175,000 in October 2012, a 24.9 percent increase, year over year.
Here’s the October data going all the way back to 1997 (thanks to G):
October Chicago sfh/condo/th sales and median
1997 1,731 $129,900
1998 1,855 $138,000
1999 1,978 $159,500
2000 2,106 $174,710
2001 2,177 $200,000
2002 2,503 $215,000
2003 2,996 $236,000
2004 2,651 $241,000
2005 2,846 $268,500
2006 2,630 $278,000
2007 2,007 $285,000
2008 1,564 $261,000
2009 2,068 $215,000
2010 1,225 $183,000
2011 1,324 $162,000 (44% short/REO sales)
2012 2,009 $175,000
2013: 2,231 $218,500
“Lower inventory options continue to raise pricing in the city as motivated, qualified buyers look to make their move as lower interest rates afford more value for their investment,” said Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate.
“As the market continues to correct itself, buyers will appreciate increased value on their long-term investment. Absorption of distressed properties being rehabbed and resold will also continue to add value to the communities they are in,” Farrell added.
Chicago mirrored what was happening in other big metro areas in October (and nationally as well) as sales were up year over year but slowed compared to the gains in the spring and summer.
The expert the IAR uses every month blamed the slowdown on the government shutdown.
“While the partial government shutdown has certainly had a profound negative effect on the housing market’s continuing recovery, sales and prices are forecast to return to more robust growth rates over the next three months,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois.
“The declines in consumer sentiment suggest that a longer-term resolution to the government fiscal tensions would provide conditions that would significantly help the housing market.”
While, the National Association of Realtors’ in-house economist blamed affordability.
Lawrence Yun, NAR chief economist, said a flattening trend is expected. “The erosion in buying power is dampening home sales,” he said. “Moreover, low inventory is holding back sales while at the same time pushing up home prices in most of the country. More new home construction is needed to help relieve the inventory pressure and moderate price gains.”
The FOMC said in its October meeting minutes that the taper on bond buying will likely be happening at the next several meetings. The bond market reacted immediately by pushing up yields on the 10-year.
If mortgage rates start to rise again, what does that mean for sales over the next few months?
Can there be both rising home prices AND rising mortgage rates?
Illinois home sales increase 3.7 percent, median prices rise 13.8 percent in October [Illinois Association of Realtors, Press Release, November 20, 2013]
October Existing-Home Sales Cool but Low Inventory Drives Prices [National Association of Realtors, Press Release, November 20, 2013]