After nearly a year of gains statewide, existing home sales in Illinois fell in July at the hands of the weak job market and the poor economy.
According to the Illinois Association of Realtors, sales of single-family houses and condominiums slid 29.7% statewide in July. A total of 8,135 properties changed hands, compared to 11,566 units in July 2009.
At the same time, though, year-to-date sales remain in positive territory, up 15% for the first seven months. Between January and July, 65,146 sales were logged, compared to 56,650 for the same period last year.
"The underlying issue for stability in the housing market remains a healthy job market," said Mike Onorato, broker-owner of Onorato Real Estate in Coal City and president of the 46,000-member IAR. "We need some significant boosts in economic development, employment and consumer confidence to reduce foreclosures and create some equilibrium between supply and demand for housing."
According to the IAR report, total existing home sales in July were up in 16 of 100 Illinois counties reporting with 39 of 100 counties posting median price increases. In the nine-county Chicago metro area, meanwhile, sales were down 25.1% for the month, from 7,427 units in July a year ago to 5,561 units last month. But as is the case statewide, year-to-date sales in Chicago were up 22.8%, from 35,554 units for the first seven months of ‘09 to 43,660 for the same period in ‘010.
However, Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois, warned that the slowdown in sales could extend into the fall selling season.
"The anemic growth of private sector jobs is dampening chances for a more robust recovery," Dr. Hewings said. "The expectation has to be that the slowing of the national economy will affect Illinois' growth prospects over the remaining months of the year."
