Housing Bubble

Illinois June home sales up 7.2 percent

July 25, 2003

SPRINGFIELD, Ill., July 25 /PRNewswire/ -- The median price of an existing home in Illinois in June increased 7.3 percent and sales increased 7.2 percent compared to the same period a year ago, the Illinois Association of REALTORS(R) reported today.

The median cost of an existing single family home in June reached $183,270, up 7.3 percent; it was $170,800 in June 2002. June home sales totaled 12,601, up 7.2 percent from one year ago. Year-to-date sales (January through June) showed an increase of 2.9 percent to 55,599, compared to 53,999 homes sold in the first six months of last year.

"Although no one expected it happening, the Illinois housing market is on track to surpass the record-breaking performance of last year. Although interest rates may not decline further, they won't increase so fast as to slow the market in the second half of the year. For all home buyers, sellers and investors, now is clearly one of the best times to buy or sell that we have seen in a long time," said Toni Sherman, president of the Illinois Association of REALTORS(R). The statewide average home price rose 5.1 percent to $210,830 compared to $200,600 during the same period last year.

Record-low interest rates hovered at 5.32 percent throughout the month of June. This is the average 30-year commitment rate for the North Central region, according to the Primary Mortgage Market survey conducted by the Federal Home Loan Mortgage Corporation. This figure is down from the 6.73 average rate during May of 2002 and down .17 percentage points from the 5.49 rate registered in June of 2002.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), existing single-family home sales totaled 8,280 in June 2003. The median existing single-family home price in the Chicagoland PMSA last month was $233,700, up 7.3 percent from $217,700 in June 2002.

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(R). 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.

The Illinois Association of REALTORS(R) is a statewide trade association whose 43,000 members are engaged in all facets of the real estate industry.

Statistics are published at the IAR Web Site at www.illinoisrealtor.org . The second quarter 2003 home sale statistics report will be issued on August 12th.

Source: Illinois Association of REALTORS