The latest monthly sales numbers are in from the Illinois Association of Realtors.
August remained hot with the highest number of sales since 2007.
“The city of Chicago saw a 22.0 percent year-over-year home sales increase in August 2013 with 2,797 sales, up from 2,293 in August 2012.
The median price of a home in the city of Chicago in August 2013 was $245,000 up 22.5 percent compared to August 2012 when it was $200,000. Chicago condo prices also saw double-digit gains for the month, posting a 17.6 percent jump to $282,250. Average time on market in the city was 47 days, down 36.5 percent compared to 74 days in August 2012.”
Here is the data for the last 6 years:
- August 2007: 2923 sales
- August 2008: 2078 sales
- August 2009: 1927 sales
- August 2010: 1486 sales
- August 2011: 1787 sales
- August 2012: 2209 sales
- August 2013: 2797 sales
Median home prices over the last 5 years:
- August 2007: $305,000
- August 2008: $297,500
- August 2009: $229,900
- August 2010: $200,000
- August 2011: $192,500
- August 2012: $200,000
- August 2013: $245,000
Chicago condo sales for August:
- 2007: 2,246 sales
- 2008: 1489 sales
- 2009: 1,239 sales
- 2010: 876 sales
- 2011: 1052 sales
- 2012: 1396 sales
- 2013: 1775 sales
“In the city of Chicago, we continue to see condo sales drive our market, with an increase in the number of units sold to 1,775 in August 2013, up 23.1 percent from the previous year, and the median home price has risen by 17.6 percent, to $282,250,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “As inventory is absorbed in some of the more popular areas of Chicago, our hope is that it spawns interest in neighborhoods that have not experienced the same growth, but offer viable, affordable housing options key to the economic renewal of our city.”
“Price and sales recovery continues and the forecast for the last quarter suggest that the momentum will be maintained,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois. “The price mix of homes sold is moving back to pre-recession levels as price increases move more homes into higher categories and as home buyers begin to seek more expensive properties. The sluggish economic recovery and increasing mortgage interest rates have not yet dampened housing demand.”
Illinois seems to be faring better than what is going on on the national level. The National Association of Realtors is uncharacteristically pessimistic about the housing market going forward.
“This high sales activity could be the last hurrah for the next 12 or 18 months,” Yun said. The NAR projects next year’s sales to total 5.2 million, and August’s rate “clearly exceeds my forecast projection.”
“A prolonged increase in mortgage rates will begin to hold back buyers,” who now appear to be prompted by higher rates to jump in before they go even higher, he said. “All the forces are for rising mortgage rates” though in the wake of Wednesday’s FOMC meeting, rates could dip, but only for one or two weeks.
Yun also said the new house shortage continues, slowing the pipeline Realtors depend on to provide more existing units for sale, that Realtor lock-box accesses in some markets took a nosedive in August, suggesting a slowdown ahead, and that first-time buyers are more “shut out” of the market than ever, meaning future move-up buyers will be fewer. And, Yun added, the trajectory of first-time sales is still aimed further downward.
What will happen this fall?
A) Low inventory will continue to push up Chicago housing prices
B) Inventory will remain low but sales will slow as well
C) Sales will remain about the same as the pre-recession September/October sales- i.e. we’ve gone back to a “normal” market
D) None of the above
Illinois home sales and prices continue upward climb in August; Statewide sales rise 17.3 percent, median prices rise 13.6 percent [Illinois Association of Realtors, Press Release, September 19, 2013]
US NAR: Existing home sales surprise again in August [MNI, Denny Gulino, September 19, 2013]