Illinois, Chicago Home Sales Fell Sharply in June
“The market choppiness that we have seen throughout the year continued in June, with home sales once again lagging previous-year numbers and sellers struggling to provide the number of homes consumers want,” said Ed Neaves, president-elect of Illinois Realtors.
SPRINGFIELD, IL—Home sales in Illinois fell sharply in June, down 11.2% from a year earlier, according to statistics released by Illinois Realtors. Home sales in Chicago also fell more than 11% last month.
Statewide home sales, which included single-family homes and condominiums, totaled 16,579 homes sold, down from the 18,673 properties traded in June 2018.
With lower sales activity, the statewide median sale price was relatively flat in June, up 0.2% at $224,500 from 12 months earlier.
“The market choppiness that we have seen throughout the year continued in June, with home sales once again lagging previous-year numbers and sellers struggling to provide the number of homes consumers want,” said Ed Neaves, president-elect of Illinois Realtors and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington, IL. “The good news for consumers is that median prices are not appreciating nearly as fast as they have in years past, so for the truly dedicated house-hunter there is opportunity.”
In the nine-county Chicago metro area, home sales in June totaled 12,002, down 11.6% from June 2018 sales of 13,573 homes. The median price in June in the Chicago metro was $263,000, an increase of 0.2% from $262,500 in June 2018.
“Housing affordability is being discussed once again as a contributor to sales declines that are once again lower than those recorded last year for the same month,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Price increases in Chicago and Illinois last month were barely positive and the increase in apartment rentals and declines in consumer sentiment indices suggest that many potential home buyers are sitting on the sidelines, no doubt influenced by concerns about trade conflicts and the future growth of the economy.”
According to the data released by Illinois Realtors, 29 Illinois counties reported sales gains for June over previous-year numbers, including Sangamon County, up 6.5% with 297 units sold; and DeKalb County, up 2.6% with 160 units sold. A total of 48 counties in the state showed year-over-year median price increases including Kankakee County, up 10.3% to $170,950; and Madison County, up 5.3% to $135,500.
The City of Chicago saw a year-over-year home sales decrease of 13.3% with 2,766 sales in June, compared to 3,191 a year ago. The median price of a home in the city of Chicago in June was $319,900 up 1.6% compared to June 2018 when it was $314,900.
“We can’t escape the topic of tax increases right now, and prospective buyers are paying attention,” said Tommy Choi, president of the Chicago Association of Realtors and broker at Keller Williams Chicago – Lincoln Park. “High assessments in the north, and tax increases expected in 2021, has made some leery. Still, the summer proves to be an active time for the Chicago housing market.”
He adds, “For buyers, rates remain low and market time and inventory has increased, meaning there is more choice and more time to make key decisions. For sellers, prices remain relatively steady, and pricing appropriately is key.”
Home sales in the Springfield MSA (Sangamon and Menard counties) totaled 306 units, a 2.7% increase while the median price was up 2.4% to $150,000; home sales in the Moline-Rock Island MSA (Henry, Mercer and Rock Island counties) totaled 217, a 3.3% increase while the median price was down 4.6% to $113,000.