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Illinois Home Sales Rise Again in March; Statewide Median Price at $198,000

SPRINGFIELD, Ill. — March home sales in Illinois rose for the second consecutive month in 2007 while a mix of factors including weather and consumer confidence add up to a drop in sales compared to the record for March set in 2006. According to the Illinois Association of REALTORS latest report, total home sales (which include single-family and condominiums) were up 36.2 percent in March 2007 to 11,979 homes sold compared to 8,792 homes sold in February 2007. Sales were 20.3 percent below the all-time high for March of 15,024 homes sold in March 2006.

The Illinois median home price in March was $198,000, up 0.1 percent from $197,900 a year earlier. The median is a typical market price where half the homes sold for more, half sold for less.

Year-to-date, home sales were down 14.2 percent to 29,390 compared to 34,235 homes sold January through March in 2006.

“In March we experienced the usual jump into the spring season with sales up well over February but we’re definitely in a market that is still finding its legs. The severe weather in February and March certainly took a toll on housing activity in Illinois,” said Robert Zoretich, president of the Illinois Association of REALTORS. “Tentative buyers and sellers are still trying to read the market and are taking their time in deciding whether to list or buy. This is a time when market conditions including favorable mortgage interest rates and inventory levels bode well for those who are ready to purchase.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.19 percent in March 2007, down 0.06 points from the 6.25 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in March it averaged 6.40 percent.

The statewide average home price in March was $256,185, up 4.0 percent from $246,434 a year earlier.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), home sales totaled 8,087 in March 2007, down 22.1 percent from 10,387 home sales in the same month last year.
The median home price for the Chicagoland PMSA was $245,000, up 0.4 percent from $244,000 in March 2006. The average home price for Chicagoland was $319,434, up 6.0 percent from $301,324 in March 2005.

“With home sales moderating, we expect to see smaller gains in price appreciation for now,” said Zoretich, broker-owner of Zoretich Realty Group in Chicago. “Spring is when many people begin to look at homes and with the season comes better weather and more activity in the housing market. REALTORS remain optimistic that this year will offer buyers a very good opportunity to begin their dream of homeownership. Buyers should look at housing as an excellent long-term investment.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR local boards and associations. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

The Illinois Association of REALTORS is a voluntary trade association whose over 60,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.