Statewide Median Price at $195,000

SPRINGFIELD, Ill., Sept. 24 /PRNewswire/ -- According to the Illinois Association of REALTORS(R) latest report, August total home sales (which include single-family and condominiums) were down 4.6 percent in August 2008 to 10,601 sales compared to July 2008 sales of 11,114; year-over-year sales were down 27.2 percent from August 2007 totals of 14,562.

The Illinois median price in August was $195,000, down 7.1 percent from $210,000 in August 2007. The median is a typical market price where half the homes sold for more, half sold for less.

"Prospects for a rapid recovery of the housing market were significantly dampened by the turmoil in the financial markets," said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. "While the interventions by the federal government in the financial sector will help stem a more precipitous slide in the housing market, the longer-term recovery of this market will now be increasingly dependent on the economy's recovery. Continued job declines both nationally and in Illinois have generated a need to address economic development issues more forcefully."

In the latest REAL forecast, Hewings reports nationally 84,000 jobs were lost in August raising the total to 605,000 for the year. Illinois lost 3,500 jobs in August and has shed 10,400 jobs in 2008. Illinois' unemployment rate in August of 7.3 percent was the third highest in the Midwest (behind Michigan at 8.9 percent and Ohio at 7.4 percent).

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.52 percent in August 2008, up 0.04 points from the 6.48 average rate the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in August it averaged 6.58 percent.

"Good credit holds the key to homeownership in this buyers' market," said REALTOR(R) Pat Callan, president of the Illinois Association of REALTORS(R). "Home prices are lower and the supply of homes is higher which makes this an opportune time for interested buyers to take advantage of market conditions. If you need to work on your credit, now's a good time to review your free credit report available from http://www.annualcreditreport.com."

In the city of Chicago, the median price of a home (single family and condominiums) was off 3.0 percent in August 2008 to $295,750 compared to $305,000 in August 2007.

"Our numbers indicate that the housing market appears to be stabilizing, despite greater U.S. economic woes," said David Hanna, President of the Chicago Association of REALTORS(R) . "Now is a better time than ever to buy a home in the Chicago area."

According to the IAR report, median price increases were recorded in 50 of 101 Illinois counties reporting in August including Champaign, up 6.7 percent; Christian, up 4.7 percent; DeKalb, up 3.8 percent; DuPage, up 4.7 percent; Jefferson, up 9.7 percent; McLean, up 16.5 percent; Peoria, up 0.3 percent; Stephenson, up 1.7; and Winnebago, up 11.1 percent.

"Home sales were up in August in Kankakee and McLean counties, while Peoria County held its own as it has for some time showing the resiliency of the central Illinois housing market," said Callan, broker-owner of Realty Executives Premiere in Wheaton.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), home sales (which include single-family and condominiums) totaled 6,804, down 30.1 percent from 9,733 home sales in August 2007. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties.

The median home sale price for the Chicagoland PMSA was $251,250 in August 2008, down 5.7 percent from $266,500 in August 2007.

Says Hewings: "Median price declines in the Chicagoland PMSA for September, October and November will move from 5 percent to less than 3 percent while the declines will be from 7 percent to 5 percent statewide."

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTORS(R) local boards and associations.

The Illinois Association of REALTORS(R) is a voluntary trade association whose 55,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS(R) works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

Find Illinois market stats data and the latest REAL forecast at http://www.illinoisrealtor.org, click on Market Stats.

For more info, contact Mary Schaefer or Ann Londrigan 217/529-2600.



SOURCE Illinois Association of REALTORS