May Home Sales Shower Positive News on Chicago Area

June 22, 2010

The Chicago real estate market continues to improve.

According to the Illinois Association of Realtors, year-over-year existing home sales in the Chicago area increased for the 11th straight month, up 33.6 percent in May 2010 compared to May 2009.

The city of Chicago saw an increase for its ninth consecutive month, up 32.1 percent in May over last year’s numbers.

Out of the 102 Illinois counties reporting, total home sales were up in 61 of them and home prices rose in 47.

The city of Chicago saw a median home price increase of 2.2 percent to $230,000 in May 2010 compared to $225,000 in May 2009.

However, the median home price in the Chicagoland Primary Metropolitan Statistical Area (PMSA), which includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will, was down 4.8 percent last month.

“The forecasts for the next three months (June, July and August) suggest a continuation of the positive changes for sales—in the 16 to 25 percent range in Illinois and in the 19 to 29 percent range in the Chicagoland region,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Price changes continue to be stubborn, with little or no movement over the three months in Illinois and declines in the 4 to 6 percent range in Chicagoland.”

The increase in May sales can still attributed to the Federal Home Buyer Tax Credit, since buyers are scrambling to close on their homes by June 30 in order to qualify. Congress is considering extending that deadline as there are so many buyers attempting to close and lenders can’t get everyone set by the end of the month.

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