Sellers continued to reap the benefit of reduced inventory and keen interest in Illinois homes as statewide median prices rose 8.4 percent in August, according to data from Illinois REALTORS®.
As the back-to-school season kicked off, homes sold in an average of 24 days statewide in August 2021, compared to an average of 46 days in August 2020. The statewide median price in August 2021 was $257,000, compared to $237,000 in August 2020. The median is a typical market price where half the homes sold for more and half sold for less.
The number of homes for sale declined to 31,054, a 28.9 percent drop from August 2020 when 43,653 homes were on the market.
Statewide home sales (including single-family homes and condominiums) in August 2021 totaled 18,492 homes sold, down 2.4 percent from 18,938 in August 2020.
“Last month, the law of supply and demand once again manifested itself in the state’s housing market,” said Sue Miller, president of Illinois REALTORS® and designated managing broker of Coldwell Banker Real Estate Group in McHenry. “What few homes that were available got snapped up quickly – with sellers getting more than their asking price due to the low inventory.”
According to the data, home sales in the Rockford MSA (Boone and Winnebago counties) totaled 526 sales, a 1.5 percent increase while the median price rose 17.7 percent to $168,250. In the Moline-Rock Island MSA (Henry, Mercer and Rock Island counites) home sales totaled 312, an 18.2 percent increase. The median price increased 11.1 percent to $138,250.
“The market continues to exhibit positive growth in prices, but the number of sales has declined,” said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration. “The Delta variant is causing concerns for consumers that have reduced their confidence in the economy, and these concerns are likely stronger in areas of the state that have had large increases in hospitalizations recently. But so far, these concerns have been offset by the continued strength of demand for housing and favorable home-selling conditions.”
Last month, in the Chicago Metro Area the median home sale price was $300,000, an increase of 7.1 percent from $280,000 in August 2020. Homes sold an average of 21 days in the area in August 2021, compared to an average of 38 in August 2020.
A total of 13,204 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area in August 2021, a 2.5 percent decrease from the 13,540 homes sold in August 2020.
In the city of Chicago, the median price of a home in August 2021 was the same as in August 2020: $335,000. Homes sold an average of 29 days in Chicago in August 2021, compared to an average of 35 in August 2020.
Chicago home sales (single-family and condominiums) in August 2021 totaled 2,831 homes sold, down 1.4 percent from August 2020 sales of 2,870 homes.
“After an anomaly of a year, we may be seeing seasonality come back into play,” said Nykea Pippion McGriff, president of the Chicago Association of REALTORS® and vice president of strategic growth at Coldwell Banker Realty. “During the month of August, sales prices held steady, and residents settled into their homes as the school year began. As summer turns to fall, this could be a great time to reach out to your REALTOR® and start, or restart, your search.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 23 participating Illinois REALTORS® local boards and associations including Midwest Real Estate Data LLC data as of Sept. 7, 2021 for the period Aug. 1 through Aug. 31, 2021. The Chicago Metro Area, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Based on the Federal Home Loan Mortgage Corp. data, the monthly average commitment rate for a 30-year, fixed-rate mortgage was 2.84 percent in August 2021, a decrease from 2.87 percent the previous month. The average was 2.94 percent in August 2020.