CHICAGO—Throughout the past year, Illinois home prices continued to recover with median prices showing year-over-year gains every month. December marked the 28th consecutive month of gains. Home sales were modestly lower in 2014 than in 2013, but officials from the Illinois Association of REALTORS® say this pointed toward a stabilizing market.

"This year marks what appears to be a turning point for the Illinois housing market," says Jim Kinney, president of the state association and vice president for luxury home sales at Baird & Warner in Chicago. "We saw strong and sustained median price gains and sales volumes remained healthy throughout the year. The showing we had in 2014 sets the housing market up nicely for a strong start to 2015."

Statewide home sales, including condominiums, in December totaled 11,397 homes, down 0.9% from 11,499 in December 2013. And the statewide median price last month was $154,000, up 3.7% from December 2013 when it was $148,500.

Sales also declined in the nine-county Chicago metro area. Home sales in December totaled 7,971, down 3.7% from last year when 8,278 homes were sold. And the median price in metro area was $184,000, up 4.2% from $176,500. Year-end 2014 home sales totaled 104,379, down 6.5% from the 111,672 homes sold in the region in 2013.

“Prices continued to record modest gains and sales recovered in December while for the next quarter, sales are forecast to be more variable on a monthly basis although the annual changes are expected to be positive,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory. “Significant employment gains, declines in the unemployment rate and gas prices have all contributed to enhancing consumer expectations that hopefully will turn into more housing sales.”

The city of Chicago saw a 6.8% year-over-year decrease in home sales last month with 1,992 sales, down from 2,137 in December 2013. And the median price rose to $229,250 versus $210,000 in December 2013, an annual increase of 9.2%.

“Our housing market recovery will continue making strides in 2015,” says Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. “Chicago buyers are willing to navigate tight inventory, motivated by low interest rates that will likely inch upward this year. For Chicago buyers taking advantage of low rates, they are moving quickly and investing strongly in their ideal home. The average homeowner is selling in less than two months, and benefiting from higher median prices.”

Instant Insights /

Home Prices Climb; Market Stabilizes in 2014

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