Illinois saw existing home sales increase 1.3 percent in February over the prior year, according to the Association of Realtors, which released the February sales and median price statistics today. Unfortunately for the Chicago Primary Metropolitan Statistical Area (PMSA), February brought a decline in sales of 8.8 percent compared to last February. As a nation, we saw a 9.6 percent drop in home sales for February.
We should be reminded that last year's numbers reflect the homebuyer tax credit that inflated sales by up to 16.5 percent. We expect to see an increase over the next couple of months in our median existing home price as it typically increases as we head through the Spring. As of now, the median existing home price is $152,500, which is the lowest level since the early 2000's.
The good news is that employment continues to strengthen, both nationally and locally. Illinois added over 64,000 jobs in 2010 and 2011 got off to a good start. We expect the state to add at least 100,000 new jobs this year. Eventually, this will lead to housing growth.
Spring officially arrived yesterday, and we've heard from some industry colleagues that traffic and sales are inconsistent in February and the first half of March. With inventory, pricing and mortgage rates at all time lows, will this be the spring that pulls us out of the hole? Stay tuned, we hope so.
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