Local home sales down 19% in 2nd quarter

By Eddie Baeb, Aug. 14, 2007

(Crain’s) — Home sales in the Chicago region dropped 19% in the quarter from the year-earlier period, according to a report released Tuesday.

A total of 29,061 single-family homes and condominiums were sold in the nine-county Chicago region during the quarter, compared with 35,889 in the second quarter of 2006, says the report by the Illinois Assn. of Realtors.

The median sale price of homes in the region, meanwhile, increased 2.6% to $256,400.

Statewide, sales fell 16.1% in the second quarter while the median sale price inched up 0.2% to $207,500.

“Much of the decline in sales can be attributed to the market’s transition back to a more normal pace as well as some uncertainty from potential buyers and sellers about the best time to enter the market,” Robert Zoretich, president of the Illinois Assn. of Realtors, said in a statement.

The data, which covers both new and existing homes, is generated from a survey of Multiple Listing Service sales throughout the state.

Borrowing rates rose in the quarter, but are down from a year ago.

The interest rate for a 30-year fixed-rate mortgage averaged 6.4% in the second quarter in the state’s North Central Region, according to the Federal Home Loan Mortgage Corp. That’s up from 6.24% in the first quarter and down from 6.69% in the second quarter last year, the Realtors’ group says.