Illinois’ October Housing Report: Prices Continue to Grow; Sales Decline
Our second post in a monthly series where we hope to give you an informative rundown of what went on in the Illinois housing market in October. Check back every 25th of the month for your inside look into the numbers that matter in Illinois real estate.
In October Illinois’ had a typical seasonal slowdown which helped to drive home sales lower, while median home prices continued to make consistent annual gains.
Statewide home sales (including single-family homes and condominiums) in October 2016 totaled 12,469 homes sold, which is down 5.4 percent from last year’s total of 13,186 in October 2015. While this may appear negative statewide median price in October was actually $179,000, which is up 6.9 percent from October 2015 when the median price was $167,500. The median is a typical market price where half the homes sold for more and half sold for less.
The time it took to sell a home in October averaged just 60 days which is 9 days down from 69 days a year ago. Available housing inventory totaled 61,837 homes for sale, a 14.7 percent decline from October 2015 when there were 72,495 homes on the market.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales in October 2016 totaled 8,762 homes sold which is down 6.3 percent from October 2015 sales of 9,350 homes. On the flip side, the median price in October 2016 was $216,250 in the Chicago PMSA which shows an increase of 8.1 percent from $200,000 in October 2015.
“No doubt that the election contributed to a decline in sales, but prices continue to grow,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “For the next three months, price growth is anticipated to be a little stronger. Declining supply contributes some uncertainty to sales growth.”
The city of Chicago shows trends similar to the rest of Illinois with an 8.8 percent home sales decrease in October 2016 with 1,981 sales, down from 2,173 in October 2015. However the median price of a home in the city of Chicago in October 2016 was $262,000 which is up at 9.2 percent compared to October 2015 when it was $240,000.
“Although the autumn market’s pace is reduced compared to the summer months, great opportunities to buy and sell property remain,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “As long as the low inventory continues, strategically priced properties will continue to fly off the market at higher prices.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Oct. 7, 2016 for the period September 1 through September 30, 2016. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.