Is the Chicago Real Estate Industry Starting to Stabilize?

July 23, 2012

The Chicago real estate market and its surrounding counterparts are all showing year-over-year-over-year signs of improvement.

Home sales in June, along with the median price of homes sold, rose within the city of Chicago, around the nine-county Chicagoland area and throughout the state of Illinois.

In fact, the level of home-buying activity during the first six months of 2012 was greater than it was during the first six months of 2010, when the federal homebuyer tax credit program was boosting home sales.

“This high level of housing market activity was last seen in the first half of 2010 promoted in large part by the homebuyer’s tax credit,” said Dr. Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “The current market seems to be operating more normally with perhaps some effects of the significant number of foreclosed properties that are for sale.”

According to data from the Illinois Association of REALTORS® for June 2012:

*City of Chicago: Year-over-year home sales were up 22.0 percent from June 2011 while the Chicago median home sale price rose 4.7 percent from $207,000 last year to $216,700 this year.

*Chicagoland: In the Chicago Primary Metropolitan Statistical Area (PMSA), home sales were up 22.4 percent compared to June 2011. The median price of homes sold was $183,000, a 1.7 percent increase from last year’s price of $180,000 and the second straight month of year-over-year median price increases.

*Illinois: Statewide, home sales last month rose 18.0 percent over sales last year to mark the best June performance since 2010. The median price was $155,000, an increase of 3.3 percent from the June 2011 price of $150,000 and the fourth straight month of median price increases in Illinois.

“The combination of low prices and even lower interest rates in June far outweighed any lingering concerns on the part of prospective homebuyers about the broader economy,” said Loretta Alonzo, CRB, GRI, president of the Illinois Association of REALTORS®.

“This year’s spring selling season clearly marked a promising turn in the housing market in Illinois.”

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