Housing Bubble
Illinois home sales hold steady and prices rise
April 25, 2003
SPRINGFIELD, Ill., /PRNewswire/ -- The median price of existing single-family homes in Illinois increased 6.9 percent in March and home sales held steady compared to the same period a year ago, the Illinois Association of REALTORS reported today. Statewide sales of existing homes in March totaled 8,515, almost even with last year's total of 8,511 sales during the same month. The March 2003 results are the highest March sales reported on record, since the Association began reporting statistics in 1990. The median existing single-family home price increased from $153,100 in March 2002 to $163,663 in March 2003.
"The median price of a home in Illinois posted impressive gains statewide, while sales remained flat despite growing uncertainty about the economy and war in Iraq," said Toni Sherman, president of the Illinois Association of REALTORS. "Home sales remained level in March, as many homebuyers made purchasing decisions to take advantage of historically low interest rates. This proves demand is still high as the first quarter totals were higher than projected." According to Freddie Mac, the average commitment rate for a 30- year conventional, fixed-rate mortgage for the North Central region averaged 5.83 in March, down from 5.90 percent in February; it was 7.12 percent in March 2002.
The average home price held at $189,666 last month, a 5.9 percent increase from $179,100 in March 2002. Illinois' median time on market edged up slightly from 34 days in March 2002 to 38 days in March 2003.
Existing single-family home sales in the Chicagoland Primary Metropolitan Statistical Area (PMSA) increased 0.6 percent last month to 5,460 sales, compared to March 2002 sales totals of 5,429. The median price of existing single-family home sales in the Chicago PMSA rose 7.7 percent to $211,200 from $196,100 reported one year ago.
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.
Preliminary statewide year-to-date home sales for the first quarter total 21,600 up 0.5 percent from 21,493 home sales in the first quarter of 2002.
"Four-decade low interest rates have been a boon to the real estate sector and have allowed businesses and individuals to borrow at attractive rates and restructure debt," said Sherman, a broker associate with Coldwell Banker Residential Brokerage in Glen Ellyn, Illinois. "The housing industry has been poised thus far to weather the negative influences of the economy. The Federal Reserve has remained committed to keeping a watchful eye on interest rates and further reductions may be necessary if economic conditions do not improve."
The Illinois Association of REALTORS is a statewide trade association whose 42,000 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 which safeguards and advances the interests of real property ownership.
Source: Illinois Association of Realtors
