July Home Prices and Sales Up Over Last Year

This morning, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago increased by 9.7% since last year, with 2,989 sales in July 2015 compared to 2,725 sales in July 2014. The median sale price increased 5.2% ($285,000 in July 2015 compared to $271,000 in July 2014). Homes in the city of Chicago were on the market an average of 41 days, down slightly from 43 days last July.

In IAR’s press release, Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co., said, “We’ve seen solid gains throughout the year, and there is every expectation that we’ll see the market momentum continue into the fall as buyers select from reduced inventories.”

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 6.7% to 8.1% on average compared to last year for August, September, and October 2015. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +3.3% in August, 5.5% in September, and 5.8% in October.
• In July 2015, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 4.2 months (down from 5.0 months a year ago).
• The pending home sales index, a leading indicator based on signed contracts, stands at 189.2 in the Chicago area, down 5.6% from one month ago and down 9.3% from July 2014 (100=average pending sales in 2008). Months of supply are increasing for homes above $500K and decreasing for homes below $500K in both Illinois and the Chicago area.

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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