Home sales in Illinois rise amid decrease across nation

Reuters News Service (The Daily Herald)
Posted Wednesday, August 25, 2004


WASHINGTON - Sales of existing U.S. homes fell more than expected in July, as the housing market took a breather from its record-toppling run, a trade association report showed Tuesday.

Sales of previously owned homes slipped 2.9 percent to a seasonally adjusted annual rate of 6.72 million units last month from a downwardly revised 6.92 million unit pace in June, the National Association of Realtors said.

In Illinois, existing home sales rose 3.9 percent in July, according to the Illinois Association of Realtors.

According to the state sales data, July home sales totaled 13,155, up 3.9 percent from 12,662 in July of 2003. Year-to-date sales showed an increase of 6.6 percent to 72,971 homes sold compared with 68,424 sales in the first seven months of last year.

"Despite slower economic activity in July, thriving home resale values and low interest rates were favorable factors for housing levels," said John C. Kmiecik, president of the Illinois Association of Realtors in a news release.

The median price of an existing single-family home in July was $192,600, up 5.6 percent from $182,400 in July 2003. The national median home price was $191,300, up 8.7 percent from $176,000 in July 2003, according to the National Association of Realtors.

In the eight-county Chicago area, existing single-family home sales rose 3.2 percent to 8,343 from 8,087 in July 2003. That area comprises Cook, DuPage, Lake, McHenry, Kane, Will, Grundy and Kendall counties.

Analysts had been expecting a drop to a 6.81 million unit rate before the report but most saw the drop as insignificant.

"End of the day, it's just a very strong number. The housing sector doesn't really show any sign of cooling off very much. This is not even a statistically significant move from June," said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, N.C.