Illinois home prices moved higher in November while statewide sales shifted lower amid tighter inventory levels, data from Illinois REALTORS® show.
Statewide home sales (including single-family homes and condominiums) in November totaled 11,026 homes sold, down 7.1 percent from 11,866 in November 2018.
The statewide median price in November was $200,000, up 5.3 percent from November 2018, when the median price was $190,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Homebuyers were confronted with the dual challenges of diminished inventory and slightly higher prices in many portions of the state,” said Ed Neaves, president of Illinois REALTORS® and designated managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “This is a continuation of trends we have seen throughout 2019 where home sellers reap modest rewards and homebuyers who move quickly and are willing to pay more are rewarded with a new home in time for the holidays.”
The time it took to sell a home in November averaged 53 days, a decrease of 1.9 percent from the year before. Available inventory totaled 52,709 homes for sale, a 6.7 percent decline from 56,510 homes in November 2018.
According to the data, home sales in the Bloomington MSA (McLean and Dewitt counties) totaled 191 units, a 6.7 percent increase while the median price was up 1.9 percent to $157,500; home sales in the Springfield MSA (Sangamon and Menard counties) totaled 234, a 9.3 percent increase while the median price increased 3.5 percent to $134,500.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.70 percent in
November, an increase from 3.69 percent the previous month, according to the Federal Home Loan Mortgage Corp. In November 2018, it averaged 4.90 percent.
In the nine-county Chicago Metro Area, home sales (single-family and condominiums) in November totaled 7,578, down 7.6 percent from November 2018 sales of 8,200 homes. The median price in November was $240,000 in the Chicago Metro Area, an increase of 3.4 percent from $232,000 in November 2018.
“Increases in new home starts in November provide some optimism that continued national employment growth and low interest rates will contribute to addressing the low inventory problem” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “There is some cautious optimism about an increase in first-time buyers in 2020 as well as the strong increase in contract signings in recent months in both Illinois and Chicago.”
The city of Chicago saw year-over-year home sales decrease 10.4 percent with 1,659 sales in November, compared to 1,852 a year ago. The median price of a home in the city of Chicago in November was $270,000 up 3.2 percent compared to November 2018 when it was $261,745.
“When you see an inventory decrease, like we did last month, you’ll likely also see a decline in closed sales, as well,” said Maurice Hampton, president of the Chicago Association of REALTORS® and owner of Centered International Realty. “Both are accompanied by a decline in days on market and uptick in median sales price. Clearly, the demand is there, but inventory isn’t.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 26 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Dec. 11, 2019 for the period Nov. 1 through Nov. 30, 2019. The Chicago Metro Area, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Illinois REALTORS® is a voluntary trade association whose more than 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
Find Illinois housing stats, data and the University of Illinois REAL forecast, including the 2020 market forecast at https://www.illinoisrealtors.org/marketstats.