Home Sales Up More than 33% in Chicagoland

Existing home sales in the Chicago area skyrocketed 33.3 percent in October 2009 over the same period last year, and year-over-year home sales were positive for the fourth consecutive month, in the Chicagoland Primary Metropolitan Statistical Area (PMSA), which takes in nine counties around Chicago.

In Illinois, the numbers were also very good, with a 24.2 percent increase over the previous year, and existing home sales were up 10.1 percent nationally as well.

In the Chicagoland PMSA, which includes Cook and eight collar counties, 7,286 single-family homes and condominiums sold in October, compared to 5,467 sold in October 2008. The median home sale price for the area was $190,000 in October 2009, down 15.6 percent from $225,000 in October 2008.

In Chicago alone, October totals for sales of single-family homes and condos were up 28.5 percent to 2,012, from 1,566 sold in October 2008. The city’s median home price in October was $215,000, down 18 percent from $262,250 the year before.

“We are seeing increased movement in both the single-family unattached homes, as well as in Chicago’s condo market,” said Genie Birch, president of the Chicago Association of Realtors®. “The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate. We are hopeful that the remainder of 2009 with the expanded and extended credits will continue to positively increase home sales in our market.”

“However,” she added, “continued review of lending policies is also necessary, in order to assist credit-worthy homebuyers in their investments.”

According to the Illinois Association of Realtors®, single-family home and condo sales in October 2009 reached 10,986 statewide, up from 8,846 the year before. The median price of the homes sold was down 7.6 percent from $170,000 in October 2008.

A major factor contributing to increased existing home sales is the $8,000 tax credit for first-time homebuyers, defined as people who have not owned in the past three years. Condos, townhomes and single-family houses are eligible. The tax credit was going to expire on Nov. 30 but industry officials hope the recent extension through April 30, 2010, and the addition of a $6,500 tax credit for existing homeowners, will continue the positive trend, and counteract rising foreclosure and unemployment rates.

“October’s extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” said Mike Onorato, president of the Illinois Association of Realtors®. “The first-time homebuyer tax credit clearly was a motivating factor and an effective market stimulus to reduce inventories and help stabilize prices. The good news is that the credit has been extended through April 2010 and expanded to now include potential move-up buyers.”
Contact OwnACondo.com today for more information about existing home sales, the tax credit, condo financing options and more.