July Illinois Home Sales Down 5.76 Percent from June

    Statewide Median Price at $199,900



    SPRINGFIELD, Ill., Aug. 25 /
EMWNews
/ --- According to the

Illinois Association of REALTORS (R) latest report, July total home sales

(which include single-family and condominiums) were down 5.76 percent in

July 2008 to 11,021 sales compared to June 2008 sales of 11,694;

year-over-year sales were down 25.2 percent from July 2007 totals of

14,738.



    The Illinois median price in July was $199,900, down 4.8 percent from

$210,000 in July 2007. The median is a typical market price where half the

homes sold for more, half sold for less.



    "While most housing-related indicators reveal continued problems, there

is some increasing evidence the supply and demand may be moving more into

balance, especially in many metropolitan markets in Illinois," said Dr.

Geoffrey J.D. Hewings, director of the Regional Economics Applications

Laboratory (REAL) of the University of Illinois. "Although housing news

continues to dominate the business headlines, the economy as a whole seems

to have assumed the major position as analysts now point to the sluggish

economy as the major reason for continued downward pressure on the housing

market's prospects for recovery."



    In the latest REAL forecast, Hewings reports the Illinois economy has

suffered two significant months of decline --- a revised (downward) loss of

10,700 in June followed by a loss of 9,700 jobs in July. In 2008 to date,

the state's economy has lost 6,900 jobs.



    The monthly average commitment rate for a 30-year, fixed-rate mortgage

for the North Central region was 6.48 percent in July 2008, up 0.10 points

from the 6.38 average rate the previous month, according to the Federal

Home Loan Mortgage Corporation. Last year in July it averaged 6.74 percent.



    "While July typically is the slower summer month for home sales in

Illinois, this year the drag on the housing market is amplified by overall

economic uncertainty among consumers," said REALTOR (R) Kay Wirth,

president of the Illinois Association of REALTORS (R). "The new tax credit

enacted by the Housing and Economic Recovery Act should be a useful tool

for first-time homebuyers in Illinois who have been waiting in the wings

and who could use some financial assistance. Smart buyers are taking

advantage of so many homes to choose from, more affordable listing prices

and mortgage interest rates in the mid-six percent range."



    "Median price increases were recorded in 38 of 100 Illinois counties

reporting in July including DuPage, up 4.9 percent; Grundy, up 6.0 percent;

Jackson, up 0.5 percent; Jo Daviess, up 11.1 percent; Macon, up 5.2

percent; Rock Island, up 14.6 percent, Saint Clair, up 7.7 percent;

Stephenson, up 7.1 percent; and Whiteside, up 2.2 percent," said Wirth, a

broker with Re/Max Unlimited Northwest in Crystal Lake.



    In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total

home sales (which include single-family and condominiums) were 7,274, down

25.2 percent from 9,730 home sales in July 2007. The Chicagoland PMSA, as

defined by the U.S. Census Bureau, includes Cook, DeKalb, DuPage, Grundy,

Kane, Kendall, Lake, McHenry and Will counties.



    The median home sale price for the Chicagoland PMSA was $254,900 in

July 2008, off 2.9 percent from $262,500 in July 2007.



    Adds Hewings: "Median prices will continue to trend downwards but at a

slower rate; for Illinois, the price declines are estimated to be 4.6

percent, 3.9 percent and 2.7 percent for August, September and October

(comparing the month in 2008 with the same month in 2007). In Chicago, the

declines will be similar save for a slightly lower value (4.1 percent) for

August."







    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 Illinois Association of REALTORS (R) is a voluntary trade

association whose 55,000 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.



    Find Illinois market stats data and the latest REAL forecast at

http://www.illinoisrealtor.org, click on Market Stats.