The momentum Chicago-area housing sales had earlier this year has faded.
In June, 14,052 homes were sold in the Chicago area, just a 1 percent gain over a year earlier. Just a few months ago, the metro area was posting double-digit sales increases. In the city, June sales were down 1.7 percent compared with a year earlier, to 3,266 homes, as home prices continued to post modest increases, the Illinois Realtors reported Monday.
In Chicago, condo prices, which had jumped substantially early this year, climbed just 1.5 percent over the year ending in June. The median condo sold for $330,000, and the median price of single-family homes climbed to $260,000, a 5.9 percent increase.
Prices for condos climbed more in the metro area as a whole than the city. They rose 5 percent in the metro area over the past year to a median $210,000. The average single-family home in the metro area climbed 5.8 percent to $275,000.
Still, while the median price climbed for the metro area, Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, sees less robust numbers on a comparable-home basis. He compares homes based on specific characteristics, and on that basis is forecasting a decline in metro-area comparable home prices of 10.1 percent in July and 1.8 percent in August. On a median price basis, he sees homes appreciating modestly in the metro area, with a 4.2 percent increase in July and 5.1 percent in August.
Sales continue to be held back by the few choices available for homebuyers.
"Everything is really tight and it's not helping sales," said Doug Carpenter, president of Illinois Realtors. "Buyers are frustrated."
In June, the inventory of homes for sale was down 17.9 percent in the Chicago area compared with the previous year and homes on the market sold within 39 days on average — an extremely fast pace compared with last year's 45 days. Even then inventory was at very low levels compared to the six months that's typical.
People continue to hold onto existing homes rather than sell, Carpenter said.
Not all homes are selling quickly. The fastest pace is among homes priced in the $100,000 to $500,000 range. Over $700,000, the pace of sales slows to an average of 57.4 days.
Hewings said in a report that he thinks uncertainty over the state's budget has been holding back sales.
"Hopefully, now that the state has a budget, a recovering state economy will encourage more investment in housing — both new construction and investment by first-time buyers," he said.
Nationally, research by Fannie Mae indicates growing optimism among consumers that they can get a home mortgage. Yet, Lawrence Yun, an economist for the National Association of Realtors, has raised concerns that renters will have trouble buying homes as home prices continue to increase.
The sharpest price increases in the Chicago area during June were in Kane County, where the median price was up 8.6 percent from a year earlier to $249,800; Kendall County, which experienced a 8.3 percent increase to $235,000; and Lake County, where prices were up 12.2 percent to $274,889.
Cook County and DuPage County experienced more modest appreciation. Cook had a 3.1 percent increase to $263,000. DuPage's median price increased 3.7 percent to $285,000.
