Illinois Homes Sold Fast in January, Demand Remains High | Business, finance and technology
SPRINGFIELD — Tighter inventories, rising mortgage rates and strong demand caused homes to sell in many parts of Illinois faster in January than in January 2021, according to data from Illinois Realtors.
The average home in Illinois sold in 38 days in January, compared to 47 days in January 2021. The average home in the Chicago metro area, averaged 36 days on the market in January, compared to 40 the last year. However, outbreaks in the city of Chicago averaged 47 days compared to 45 in January 2021.
Statewide home sales (including single-family homes and condominiums) in January totaled 10,221 homes sold, down 0.6% from 10,279 in January 2021.
The statewide median price rose 5.8% to $238,000 in January from January 2021. The median is a typical market price where half of the homes sell for more and the other half sell less.
The number of homes for sale statewide was 18,510 in January compared to 29,093 in January 2021, a decline of 36.4%.
“For a variety of reasons, there are generally fewer homes for sale in January,” said Ezekiel “Zeke” Morris, president of Illinois Realtors and designated chief broker for EXIT Strategy Realty-EMA Management in South Chicago. “But for many who put their homes up for sale last month, they sold very quickly and at great prices. Now is a great time to sell due to low inventory.
According to the data, home sales in the MSA of Peoria (Marshall, Peoria, Stark, Tazewell and Woodford counties) totaled 361 sales, an increase of 10.4% while the median price increased by 10.9 % to reach $127,500. In MSA Champaign-Urbana (Champaign, Piatt and Ford counties), home sales totaled 168, an increase of 7.7%. The median price rose 9.6% to $169,900.
“Prices rose again while sales continued to decline across Illinois,” said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate (SHDRE) at the University of Illinois at Chicago College of Business Administration. “However, the SHDRE forecast now indicates an increase in the number of sales over the next three months. Seizures have increased significantly but remain low by historical standards. Polls indicate that consumers are increasingly pessimistic about the state of the economy.
Last month, 7,120 homes (single-family and condominiums) were sold in the Chicago metro area, down 1.0% from the 7,189 homes sold in January 2021.
In the Chicago metro area, the median selling price of a home in January 2022 was $285,000, up 5.6% from $270,000 in January 2021.
In the City of Chicago, home sales (single-family and condominium) in January 2022 totaled 1,801 homes sold, up 6.1% from January 2021 sales of 1,698 homes.
The median price of a home in Chicago in January was $310,000, the same as in January 2021.
“The real estate market remained strong in January, with home sales increasing and prices stable,” said Antje Gehrken, president of the Chicago Association of Realtors and president and designate chief broker of ARE Partners. “The continued decline in inventory is impacting time to market as buyers slow from the accelerated pace of 2021 and take time to find their dream home.”
Sales and pricing information is generated from Multiple Listing Service closed sales reported by 23 participating local Illinois Realtors boards and associations, including data from Midwest Real Estate Data LLC as of February 7 for the period from February 1 January to January 31. The Chicago metropolitan area, as defined by the US Census Bureau, includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties.
Based on data from the Federal Home Loan Mortgage Corp., the monthly average commitment rate for a 30-year fixed rate mortgage was 3.45% in January 2022, up from the previous month by 3 .1%. The average was 2.74% in January 2021.
For more information, visit illinoisrealtors.org/marketstats/. Illinois Realtors is a voluntary trade association with more than 50,000 members engaged in all facets of the real estate industry