The Illinois property market continued to heat up in October as homes sold fast and competition between buyers increased, recent data from Illinois REALTORS® reveals. A total of 15,920 homes were sold statewide in October 2021, down 11% from 17,889 in October 2020. Homes sold in an average of 28 days, compared to 43 days in October 2020. The statewide median price also increased 5.4%, while the number of homes for sale dropped by 28.7% to 29,456. In comparison, 41,320 homes were on the market in October 2020.
Positive price growth and fewer sales
In October 2021, the median home sale price in the Chicago Metro Area was $289,745, up from $274,000 in October 2020 — a 5.7% increase. 11,149 homes were sold in total, a 11.6% decrease from the 12,613 homes sold the October prior. And, in the city of Chicago, total home sales reached 2,417, a 5.9% decrease from October 2020. The median price of a home in Chicago was also $312,000 in October 2021, down 1% from $315,000 compared to October 2020. “Again, this month the market exhibits positive growth in prices combined with a decline in the number of sales,” said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration. “Surveys provide mixed evidence on consumer sentiment, with some indicating an increase this month in consumer confidence in the economy and others indicating a decrease. Prices are expected to continue to increase for the next three months while the number of sales is expected to decrease again.”
Finding an affordable home
By working with a reputable and trustworthy Illinois mortgage lender, buyers can find the best mortgage deal for them. For example, a conventional loan is an affordable option with competitive rates, often cheaper than other popular types of loans. In Illinois, the monthly average commitment rate for a 30-year, fixed-rate mortgage increased to 3.07% in October 2021, up from 2.90% the month prior. In October 2020, the average was 2.83%. “As we get closer to the holidays and temperatures cool, it appears that some traditional home buyers may think it’s best to delay their search until 2022,” says Ezekiel “Zeke” Morris, President of Illinois REALTORS®. “But prospective home buyers should still consider seizing the opportunity now to secure new homes while they can reap the benefits of lower interest rates.”
Ultimately, the changing season is partly to blame for the increased demand placed upon the Illinois real estate market. “Real estate has always had an element of seasonality, and that’s what the data reflects from October: seasonality coming back into play after so much pent-up demand over the past year and a half,” explains Antje Gehrken, president of the Chicago Association of REALTORS®. “The market remains relatively strong and healthy, even compared to before the pandemic, despite concerns about continued inventory strain.”