Local home sales off 29% in Feb. as median prices fall
(Crain's) — Chicago-area home sales fell almost 29% in February while sales in the city fell more than 40%, according to the Illinois Assn. of Realtors.
The median prices in the Chicago area and the city fell more than 23%, according to a release Monday from the Realtors' group.
"Even though conditions are good for buyers with low interest rates and lower home prices, the job losses in Illinois and record-low consumer confidence has kept potential home buyers waiting on the sidelines for signs of improvement in the overall economy," Pat Callan, president of the association, said in the release.
Realtors hope steps like the tax credit of up to $8,000 for first-time buyers that was part of the economic stimulus plan will spur purchases, and the Federal Reserve's decision to buy more mortgage-backed securities is anticipated should keep mortgage rates lower longer, Mr. Callan said in the release.
In the nine-county Chicago region, 3,082 single-family homes and condominiums were sold last month, a decline of 28.8% compared with 4,326 sales in February 2008, the association said.
In the city of Chicago, sales fell 40.4% in February, to 841 compared with 1,412 in February 2008.
The median price — where half the homes sold for more and half sold for less — fell 23.5% in the Chicago area and 24.7% in the city, the Realtors' group said.
The Chicago-area median price in February was $183,625, compared with $240,000 in February 2008. The median price in the city was $218,250 in February, down from $290,000 in February 2008.
"We believe the recent sales activity in the Chicago marketplace is indicative of strong interest by investors and bargain hunters in distressed properties," David Hanna, president of the Chicago Assn. of Realtors, said in the release.
Statewide sales fell 27.8% in February to 5,097 homes, compared with 7,058 in February 2008, the Realtors' group said. The median price statewide fell 20.8% in February to $141,000, compared with $177,950 in February 2008.
Chicago-area home sales fell almost 25% last month compared with January 2008. Local sales tumbled almost 26% last year.
The Realtors group's sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Meanwhile, sales of existing homes nationwide rose from January to February in an unexpected boost for the slumping U.S. housing market as buyers took advantage of deep discounts on foreclosures.
The National Assn. of Realtors said Monday that sales of existing homes grew 5.1% to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.
Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.
The median U.S. sales price plunged to $165,400, down 15.5% from $195,800 a year earlier. That was the second-largest drop on record.
February's median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.
The Associated Press contributed to this report.
