Chicago Real Estate Market a Buyer’s Dream

December 21, 2011

Conditions in the Illinois and metro Chicago real estate markets continue to be favorable toward home buyers, as last month’s home sales and median prices reflect.

According to the Illinois Association of REALTORS® (IAR), statewide home sales in November rose 14.2 percent from November 2010, while the median home price in Illinois was $128,500, down 11.4 percent from the $145,000 averaged during the same month last year.

scale with house heavier than dollar signIn the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), last month’s existing-home sales were up 20.7 percent compared to November 2010, and the median price was $150,000, down 14.3 percent compared to last year in November when it was $175,000.

And, within the city of Chicago, November 2011 home sales rose 20.4 percent from November 2010, while the median home sale price dropped 12.3 percent from last year; $160,000 versus $182,500.

“The market is being stimulated by buyers who are doing their homework and buying at the most compelling price they can, while sellers are working aggressively with their REALTORS® to price their homes to sell,” said REALTOR® Bob Floss, president of the Chicago Association of REALTORS®.

“Chicago is seeing a combination of unit absorption paired with distressed homes that are still pushing down sale prices. Low interest rates and smart opportunities to buy make for favorable market conditions for both buyers and sellers looking to right-size to their lifestyle.”

More than half (52 percent) of Illinois counties reported year-over-year home sales increases in November. Almost half (41 percent) showed year-over-year median-price increases including Kankakee, up 12.4 percent to $97,750; Kendall, up 2.5 percent to $169,000; Knox, up 19.2 percent to $77,500; and LaSalle, up 6.5 percent to $79,900.

“Little by little, there is some accumulating evidence that there may be some measure of recovery in the housing market,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

“The positive trends in both Illinois and the Chicago PMSA housing markets stem in large part from the fact that the housing inventory levels are low and the pending home sales indices are high. The month’s supply of homes on the market is 10.3 and 10.4, respectively, for the state and the Chicago PMSA, and are the lowest since January 2010.”

According to IAR president Loretta Alonzo, these positive trends will continue in 2012.

“Signs are emerging that a recovery in the housing market is underway including the steady uptick in home sales activity, which is expected to continue into the new year,” she said. “As we move through the distressed properties, predominant in the Chicagoland market, and begin to see more positive reports on the jobs front, we will be looking for some stabilization in home prices to coincide with the rising home sales.”

Until then, it remains a buyer’s market out here.

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