Housing Bubble

Illinois existing home sales show small gain in first quarter

May 12, 2003

SPRINGFIELD, Ill., May 12 /PRNewswire/ -- War concerns and winter weather along with a stagnant job market did not stop the Illinois housing market from registering a small gain in home sales during the first quarter. Statewide sales of existing, single-family homes rose 0.8 percent in the first quarter to 21,664 units, as reported by the Illinois Association of REALTORS. First- quarter buyers responded to record low interest rates posted.

"Uneasiness about the conflict in Iraq dampened home sales in the first quarter. With the war in Iraq coming to a close, consumer confidence is improving which should help bolster home sales in the summer months," said Toni Sherman, president of the Illinois Association of REALTORS. "During the first quarter, mortgage interest rates dropped to record lows which spurred home sales, thus, keeping the economy moving along. Given that mortgage rates are expected to remain low and house price growth should remain moderate, these factors should contribute to keeping housing affordable for a broader segment of the population." The first-quarter interest rate for 30-year, fixed-rate mortgages held at 5.93 percent in the North Central region according to the Federal Home Loan Mortgage Corporation.

The Chicagoland PMSA saw growth in existing, single-family home sales as well. During the first quarter, Chicagoland sales rose 0.6 percent to 13,699-up from 13,624 home sales during the first quarter of 2002.

The Illinois median price of an existing, single-family home rose 7.3 percent from $148,700 during the first quarter of 2002 to $159,600 in the first quarter of this year. In the Chicagoland PMSA, the first quarter median price is $207,100, compared to $190,400 in the first quarter of last year -- showing an increase of 8.8 percent.

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.

In the local association markets, first-quarter home prices ranged from $43,300 in the Mid Valley (Kewanee) area to $454,900 in the Barrington area. Sample areas that reported year-to-year median price appreciation in the Chicago metro region include Elgin, up 9.1 percent to $187,600, Aurora up 8.6 percent to $186,800, Lake County up 3.3 percent to $191,400; and the Northwest Suburbs up 9.9 percent to $283,000.

A sample of areas round the state that saw median price increases are Belleville, up 5.5 percent to $86,300, Bloomington-Normal up 5.6 percent to $134,400, Peoria, up 3.6 percent to $85,300, Rockford up 7.1 percent to $103,500 and Springfield up 9.7 percent to $94,000

Condominiums

Some 8,918 condominiums were sold statewide during the first quarter, showing a 5.1 increase from the 8,484 condos sold during the same time period last year. Condominiums in the Chicagoland metro region increased 3.9 percent, from 8,070 in the first quarter of 2002 to 8,384 during the first quarter of this year. The statewide median condominium price was $169,600 in the first quarter-up 6.3 percent from $159,500 during the first quarter of 2002. The median condo price in the Chicagoland PMSA rose 6.3 percent to $171,900-up from $161,700 during the first quarter of last year.

The IAR survey includes non-seasonally adjusted sales figures and median prices for existing condominiums as reported by those local associations who compile condominium statistics.

The Illinois Association of REALTORS is a voluntary trade association whose 41,000 members are engaged in all facets of the real estate industry.

The first quarter 2003 housing statistics are published at the IAR Web Site at www.illinoisrealtor.org .

Source: Illinois Association of REALTORS