SPRINGFIELD, Ill., May 14 /PRNewswire-USNewswire/ -- Home prices in Illinois held steady as weather in the first quarter of 2007 dampened sales activity. According to the Illinois Association of REALTORS(R) (IAR) first quarter report, total home sales (which include single-family homes and condominiums) totaled 29,390, down 14.2 percent from 34,235 home sales in the first quarter of 2006.
The first quarter median home sale price was $197,000, up 0.5 percent from $196,000 a year earlier. The median is a typical market price where half the homes sold for more, half sold for less. The average sale price was $251,375, up 1.9 percent from $246,610 for the same period a year ago.
"Like the rest of the nation, the Illinois housing market took a hit from extreme winter weather in the first few months of the year but we should see activity picking up as buyers take advantage of the dynamics in place with this market including solid inventory levels, low interest rates and a range of housing options available across the state," said Robert Zoretich, president of the Illinois Association of REALTORS(R). "As home sales moderate, overall home prices will be essentially flat this year. It's too early to measure a significant impact from tighter lending standards due to the subprime fallout, which could moderately dampen activity, but we are still looking for existing-home sales to gradually improve during the last half of 2007."
The first-quarter interest rate for 30-year, fixed-rate mortgages averaged 6.24 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 6.29 percent in the fourth quarter of 2006 and 6.33 percent first quarter 2006.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR(R) local boards and associations. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
In the Chicagoland Primary Metropolitan Statistical Area (PMSA), total home sales (including single-family and condominiums) were down 16.5 percent in the first quarter to 19,921, compared to 23,846 home sales in 2006.
The median home sale price in the Chicagoland PMSA increased 2.0 percent to $244,900 in the first quarter of 2007 compared to $240,000 in the same period one year ago.
"Buyers really have an edge at this time with a good supply of homes to choose from on the market," said Zoretich, broker-owner of Zoretich Realty Group in Chicago. "Looking forward, we are likely to see smaller year-to-year declines as we enter the traditional buying season. Homes that are priced to reflect realities of today's market will continue to sell."
The National Association of REALTORS(R) predicts housing activity to be somewhat lower than in earlier forecasts. Existing-home sales are likely to total 6.29 million this year. "Housing first and foremost is shelter. Second, it's a long-term investment that slowly builds the greatest amount of wealth for most families," said Lawrence Yun, NAR senior economist. "It's good that we are getting beyond the tendency of some buyers to view housing as a temporary asset to accumulate short-term wealth, which is not to be expected in a normal market."
First quarter condo sales across the state were down 11.1 percent to 9,421 condos sold compared to 10,595 in 2006. The median price for a condominium in Illinois in the first quarter of 2007 was $215,000, up 2.4 percent from $210,000 a year ago.
In the Chicago PMSA, condo sales were down 11.3 percent to 9,045 units sold during the first quarter of 2007, compared to 10,194 in the same period of 2006. The first quarter condo median price was $219,400, up 2.0 percent from $215,000 in the first quarter of 2006.
The Illinois Association of REALTORS(R) is a voluntary trade association whose 60,000 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(R) works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
Illinois Association of REALTORS
