April Home Prices and Sales Are Up Over Last Year

On May 22, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago increased by 5.8% since last year, with 2,386 sales in April 2015 compared to 2,256 sales in April 2014. The median sale price surged up by 10.0% ($275,000 in April 2015 compared to $250,000 in April 2014). Homes in the city of Chicago were on the market an average of 52 days in April, down 5.5% from 55 days in April 2014.

In IAR’s press release, Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co., said, “In Chicago, year-over-year sales and price gains are a clear sign that buyers are enthusiastic about making a purchase now despite a fewer number of homes available for sale. With interest rates so low, we expect more buyers to seize the opportunity to make an investment. Homeowners who enter the market can anticipate strong sales prices as this trend has continued all year.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates positive increases in Chicago area* annual sales levels, with changes ranging from +5.7% to +7.2% on average compared to last year for May, June, and July of 2015. Other notes from the forecast report include:

• Annual median prices in the Chicago area are predicted to have steady gains of +10.3% in May, +10.2% in June, and +10.5% in July compared to last year’s figures.
• In April 2015, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.8 months (slightly down from 4.2 months one year ago).
• The latest pending home sales index available (based on signed contracts, 100=average pending sales in 2008) stands at 224.2 in the Chicago area, up 6.7% from one month ago and up 16.1% from April 2014.

The press release, city of Chicago report, and forecast report are available on the IAR website.

*Chicago PMSA: Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties

Note: The Illinois Association of Realtors (IAR) transitioned to a new reporting system in December 2012 that resulted in revisions to previously reported data. IAR data is subject to revision by reporting Multiple Listing Service affiliates. For more information, please refer to the IAR website.

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