Existing home, condo sales up in 3rd quarter

By Anna Marie Kukec
Daily Herald Business Writer
Posted Tuesday, November 15, 2005

Favorable mortgage interest rates continued to attract buyers for existing single-family homes during the third quarter, leading to a double-digit boost in some local counties, according to a report released Monday by the Illinois Association of Realtors.

McHenry County saw a 13 percent jump in the number of homes sold, while the price of homes increased by double digits in Cook, Kane and Will counties.

Overall home sales, which include single-family homes and condominiums, were up 3.9 percent for the period ending in September, compared to last year. A total of 54,749 single-family homes and condominiums were sold statewide, compared to 52,682 in 2004, the report said.

The report also showed the disparity of wide-ranging prices statewide. Single-family median home prices in the third quarter ranged from $334,900 in DuPage County to $24,500 in Hancock County.

“Sales were strong here because buyer confidence was up and we still had lower interest rates,” said Kay Wirth, a Realtor with Re/Max Tri-County in Crystal Lake.

The association said August and September sales were robust after a lull in July. And while interest rates inched up, that didn’t sidetrack determined buyers. The third-quarter interest rate for 30-year, fixed-rate mortgages averaged 5.86 percent, according to the Federal Home Loan Mortgage Corp.

“As long as interest rates remain under 7 percent, people will continue to buy, and much of this shows how people are still buying real estate as an investment,” said association President Stan Sieron.

Besides mortgage rates, downsizing Baby Boomers and first-time buyers hoping to escape rent have helped boost sales, the association said.

Single-family home sales for the quarter were up 1.3 percent to 37,833 homes sold, compared to 37,346 in 2004. The median price of a single-family home during the third quarter was up 11.1 percent to $211,000, compared to $189,900 last year.

In the Chicago and suburban region, sales of single-family homes were up 0.6 percent in the third quarter to 23,571, compared to 23,427 home sales in 2004. The median price of single-family homes sold in the Chicago area had increased 10 percent to $275,000 in the third quarter, vs. $250,000 in the same period last year, the report said.

In addition, 16,916 condominium units were sold statewide, up 10.3 percent over 2004’s figures of 15,336 units. The statewide median price for condos jumped 8 percent to $208,200, compared to $192,775 last year.

The Chicago area saw a 10.1 percent jump in condominium sales to 16,246 units sold, from 14,749 in 2004. For the Chicago area, the median condo price rose 9 percent to $213,000, compared to $195,500 in 2004, the report said.