According to yesterday's news release published by the Illinois Association of Realtors, "Illinois home sales (which include single-family homes and condominiums) totaled 35,628 in the second quarter, up 27.7 percent from 27,890 home sales in the same period a year ago. The last quarter when sales totals were higher than second quarter 2010 was third quarter 2007 when home sales reached 39,904."
My alma mater, the University of Illinois, has a research center called the Regional Economics Applications Laboratory (REAL) that has been tracking trends since their inception in 1989. Dr. Geoffrey J.D. Hewings is the current director of REAL and, like many experts, sees a correlation between the housing market and job market from a literal and psychological standpoint.
“I believe the housing market that really led the growth rates in the early part of this century are now very much tied to job growth. Most people are going to feel much better about making major purchases if they can have a sense that the private sector job growth is going to continue,” said Dr. Hewings. “As a result we will see a very strong relationship between home sales and job growth over the next six to 18 months, much more than we’ve seen in the past.” (per IAR report, 8/11/2010)
Perhaps more significant are recent statistical findings by the National Association of Realtors (NAR) as they relate to home prices.
According to NAR's published report yesterday:
"In the second quarter, 100 out of 155 metropolitan statistical areas (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009."
How about our region?
"In the Midwest, the median existing single-family home price increased 1.4 percent to $148,500 in the second quarter from the second quarter of last year. Existing-home sales in the Midwest rose 14.5 percent in the second quarter to a pace of 1.30 million and are 20.9 percent above the same period in 2009."
As I've been reporting on this blog, there has been a positive month-by-month developing trend of sales over the last year but pricing has not caught up to this point. Yesterday's report may be the step in the right direction that many homeowners and members of the industry have been waiting for.
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