May 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 10.1% since last year, with 2,700 sales in May 2015 compared to 2,453 sales in May 2014. The median sale price surged up by 6.8% ($287,500 in May 2015 compared to $269,250 in May 2014). Homes in the city of Chicago were on the market an average of 46 days in May, down 8.0% from 50 days in May 2014.

In IAR’s press release, Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co., said, “Chicago has seen home buyers enter the market with vigor since February. The increase in median prices and the relative lack of inventory compared to a year ago show consumers are comfortable with buying in the city and they believe the investment is worth paying a bit more.”
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 +5.4% to +6.7% on average compared to last year for June, July, and August of 2015. Other notes from the forecast report include:

• Annual median prices in the Chicago area are predicted to have steady gains of +8.0% in June, +7.6% in July, and +7.4% in August compared to last year’s figures.
• In May 2015, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.9 months (down from 4.5 months one year ago).
• The latest pending home sales index available (based on signed contracts, 100=average pending sales in 2008) stands at 221.8 in the Chicago area, up 1.6% from one month ago and up 12.2% from May 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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