Chicago, IL (PRWEB) August 02, 2013
A 10 percent increase in the median price of homes sold during the second quarter of 2013 confirms that rising home values now characterize the metropolitan Chicago real estate market, according to an analysis by RE/MAX that compared results for the quarter to the same period last year. The median sales price in the seven-county area during the April-June period was $189,000.
Monthly sales data has suggested for some time that prices were moving upward, and this is the third consecutive quarter in which the median price rose. However, the second quarter was the first of those to register an increase of more than 3 percent. The 10 percent gain is the largest percentage year-to-year increase in the metro Chicago median sales price for any quarter in the last eight years.
RE/MAX reported that the pace of sales continued to quicken. Total transactions closed during the quarter reached 31,246 in the metro area, a 28 percent increase, while the average amount of time it took for a newly listed home to go under contract was 115 days, or 44 days less than in the second quarter of 2012. It was the shortest quarterly average market time since the fourth quarter of 2006.
According to the RE/MAX analysis, three factors contributed to the positive trends in pricing and sales time:
1. Eager buyers spurred by an improving economy and concerns that both home prices and mortgage interest rates are heading higher;
2. A smaller inventory of homes for sale – 30 percent fewer homes were on the market at the end of this June than a year earlier;
3. A decline in the percentage of sales accounted for by foreclosures and short sales – down to 32 percent in the second quarter from 37 percent a year ago.
Sales activity as well as the median price increased in all seven metro counties and in Chicago. In transactions, McHenry County led the way with a 45 percent increase to 1,391 units. Elsewhere, Lake County gained 34 percent to 2,994 units; Kane County was up 32 percent to 2,202 units; DuPage County sales rose 31 percent to 3,929 units; Cook County activity climbed 26 percent to 17,682 units; Kendall County sales were up 24 percent to 588 units and Will County gained 18 percent to 2,456 units.
The median sales price for each county was: Cook, $189,250, up 13 percent; DuPage, $227,500, up 6 percent; Kane $169,250, up 9 percent; Kendall, $171,350, up 7 percent; Lake, $202,750, up 9 percent; McHenry, $156,000, up 6 percent; Will, $178,310, up 9 percent.
For the City of Chicago, the transaction total for the quarter was 8,015 units, a gain of 26 percent, while the median sales price was $235,000, an 18 percent increase.
Sales of detached homes in the metro Chicago market rose 26 percent for the quarter to 19,549 units, while the median sales price increased 11 percent to $210,000. Average market time for the quarter was 114 days, 39 days less than a year earlier.
Sales activity and the median sales price for detached homes rose in all seven counties. Sales were up 25 percent in Cook County, 28 percent in DuPage County, 30 percent in Kane County, 24 percent in Kendall County, 34 percent in Lake County, 40 percent in McHenry County and 15 percent in Will County.
The median sales price climbed 10 percent in Cook to $187,500, Kane to $195,000 and Will to $200,000, 8 percent in McHenry to $175,150 and 7 percent in DuPage to $295,000, Kendall to $194,900 and Lake to $240,678.
Unit sales of detached homes in Chicago climbed 20 percent, and the median sales price rose 13 percent to $165,000.
Sales activity in the attached home segment – primarily condominium apartments and townhouses – increased 31 percent for the quarter to 11,697 units in the seven-county Chicago market. The median sales price was $152,000, which translates to a 9 percent increase. Average market time was 118 days, 53 days less than during the second quarter of last year.
The number of completed sales rose at least 27 percent in all seven counties, and the median price was up in six of the seven. Results for the counties were as follows: in Cook, transactions rose 29 percent and the median price was $190,000, a 17 percent gain; in DuPage sales were up 37 percent and the median price was $127,250, up 5 percent; transaction volume rose 39 percent in Kane, and the median price was $117,000, up 2 percent; Kendall registered gains of 27 percent in transactions and 15 percent in median price to $110,000; sales activity in Lake was up 34 percent, and the median price gained 8 percent to $130,000; and Will County sales were up 33 percent with a median price of $129,000, up 15 percent. McHenry County recorded the strongest increase in sales, 73 percent, while the median price dipped 10 percent to $90,000.
In Chicago, sales of attached homes gained 30 percent, and the median price rose 15 percent to $275,000.
RE/MAX has been the leader in the northern Illinois real estate market since 1989. The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of 2,000 sales associates and 100 individually owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. Its http://www.illinoisproperty.com and http://www.remax.com websites are leaders in consumer visits among real estate franchise brands. The http://www.global.remax.com website allows consumers to search properties around the globe; http://www.theremaxcollection.com is a specialized portal of luxury properties across the U.S., and http://www.remaxcommercial.com displays commercial properties available nationwide and abroad. The northern Illinois network is part of RE/MAX LLC, a global real estate organization with 91,000 sales associates in 90+ nations. The RE/MAX organization has been recognized for numerous industry honors for excellence, and its Associates continue to lead the industry in professional designations, experience and production. Nobody in the world sells more real estate than RE/MAX. RE/MAX is the official real estate partner of Children’s Miracle Network Hospitals and the national sponsor of Susan G. Komen for the Cure®.