With all the talk about the state of housing in the US, what about Illinois, what is the current status?
February homes sales in Illinois rose from January while year over year comparisons still reflect an impact from the homebuyer tax credit incentive. The single family market shows signs of stabilization with steady median price gains statewide in the first two months of the year compared to 2009 and 2010 levels. According to the Illinois Association of Realtors latest report (which includes single family and condominium sales) the number of homes sold is up 1.3% in February from January 2011.
The median price (a typical market price where half of the homes sold for mare and half sold for less) in February statewide were up 1.6% from February 2010 and up 2.8% from February 2009.
We are seeing some improvements in the single family market in particular in terms of median prices trending higher and back to more sustainable pre-boom levels, according to Sheryl Grider Whitehurst, president of the Illinois Association of Realtors. More encouraging job signals and warmer weather should bring qualifies buyers out of hibernation to grab hold of the low interest rates and high affordability factors in place for the spring market.
Sales in the Chicago area are forecast to decline year over year for the next 3 months, but this is not an extremely negative signal for Illinois and the Chicago area. This takes into consideration the early 2010 market was inflated by the homebuyer tax credit,
The economy continues to provide some positive signs. National job gains in the last 12 months have amounted to 1.3 million, or an average of 106,000 jobs per month. Illinois added 64,200 jobs in the last year or an average of 5,350 jobs per month.
In the end, most analysts agree that a strong labor market will be the key to a housing market recovery.