Housing Bubble
Illinois home sales and prices rise
March 25, 2003
SPRINGFIELD, Ill., The median price of existing single-family homes in Illinois increased 6.4 percent in February and sales rose 1.9 percent compared to the same period a year ago, the Illinois Association of REALTORS reported today. Mortgage rates, which hit a 40-year low in February, stimulated a record number of home sales across the state. Statewide sales of existing homes in February totaled 6,625, a 1.9 percent increase from the 6,502 sales posted during the month in 2002. The February 2003 results are the highest February sales reported on record, since the Association began reporting statistics in 1990. The median existing single- family home price increased from $144,000 in February 2002 to $153,200 in February 2003.
"Inclement weather did not stall the momentum of the existing home sales market in the state. Real estate is doing well because of basic fundamentals, primarily due to low interest rates and strong demand," said Toni Sherman, president of the Illinois Association of REALTORS. "During the month, mortgage rates hit historic lows, driving more buyers into the market and choosing the security of real estate as an investment."
According to Freddie Mac, the average commitment rate for a 30-year conventional, fixed-rate mortgage for the North Central region averaged 5.90 in February, down from 6.03 percent in January; it was 6.89 percent in February 2002.
The average home price held at $178,150 last month, a 4.0 percent increase from $171,300 in February 2002. Illinois' median time on market edged up slightly from 39 days in February 2002 to 43 days in February 2003.
Existing single-family home sales in the Chicagoland Primary Metropolitan Statistical Area (PMSA) increased 1.0 percent last month to 4,008 sales, compared to February 2002 sales totals of 3,970. The median price of existing single-family home sales in the Chicago PMSA rose 9.0 percent to $204,400.
"Homes have continued to remain affordable for many Americans due to low mortgage rates and diversified mortgage options," said Sherman, a broker associate with Coldwell Banker Residential Brokerage in Glen Ellyn, Illinois. "Job security concerns, rising oil prices, waning consumer confidence and the cloud of uncertainty over the war in Iraq certainly affected all aspects of the economy during the month of February. Low interest rates should continue to keep the housing market stable and further rate cuts may be considered if the economy proves to need a sure stimulus in the coming months."
The Chicagoland PMSA includes the counties of Cook, DuPage, Lake, McHenry, Kane, Will, Grundy and Kendall and consists of data from the Multiple Listing Service of Northern Illinois, which includes 11 boards and associations of REALTORS. The IAR survey covers non-seasonally adjusted sales figures and median prices for existing detached, single-family homes sold in 37 local association markets throughout Illinois.
Source: Illinois Association of REALTORS®
