Market Conditions

Market Conditions: April Sales Down 26.9% Year Over Year

Sales continued to decline in Chicago in April while prices are also down sharply from the year ago period.

From the Illinois Association of Realtors:

In the city of Chicago, April total home sales (single-family and condominiums) were up 16.7 percent to 1,378 sales compared to March 2009 sales of 1,181; sales were down 26.9 percent from 1,886 in April 2008.

The city of Chicago median price remained unchanged at $220,000 in April and March 2009; the city of Chicago median price in April was down 26.7 percent from $300,000 in April 2008.

“We continue to see homes in foreclosure and short sales driving prices lower in many areas of the city,” said David Hanna, president of the Chicago Association of REALTORS®.

“Policy changes such as allowing first-time homebuyers to use the $8,000 tax credit at closing and a streamlined process for short sales will help, but the critical issues are the rising numbers of foreclosures and restrictive lending guidelines not crafted for our urban market. The federal loan modification program has not yet slowed the pace of foreclosures, a must for turning housing around in the Chicago metropolitan area. Regulators and lenders need guidance and latitude in creating a lending environment that addresses regional and in particular urban housing differences. That is not happening right now, and our numbers reflect the result.”

For the entire state, sales were down 20.9% year over year. In the 9-county Chicagoland area, sales fell 22.1% from April 2008.

“Illinois home sales are showing some signs of life as people take advantage of the favorable buyer’s market conditions and the federal stimulus package incentives,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®.

“Those waiting on the sidelines should act now while the window of opportunity is still open and before mortgage interest rates rise above these lows. The $8,000 first-time homebuyer tax credit ends December 1, 2009, and we anticipate details soon to be released by the U.S. Department of Housing and Urban Development allowing FHA consumers to use this credit as a down payment at the closing table.”

April Illinois Home Sales Signal Buyers Getting Off the Sidelines
Statewide Sales Up 9 Percent; Median Price at $150,000 [Illinois Association of Realtors Press Release, May 27, 2009]