Chicago Area home sales plunge, home prices steady
Housing Bottom may soon be in sight, analysts say
June 27 2008 - Home sales in the nine-county Chicago area were down 29 percent in May compared with a year ago while prices were fairly stable, dipping just 0.5 percent, to $251,000, according to the Illinois Association of Realtors, as a housing industry in crisis continued to struggle.
Nationally, sales of existing homes rose slightly in May compared with April, only the second increase in the past 10 months. Prices, however, kept plunging and analysts said the large number of unsold homes indicated the prolonged slump in housing was far from over.
Some analysts, though, are beginning to speculate that the bottom of the market soon may be in sight.
Home sales in Illinois were down 22.9 percent in May from a year ago and the median price dropped 7.3 percent, to $190,000, from a year ago.
May’s numbers did reflect an improvement from the previous month. Total home sales, which include single-family and condominiums, were up 17.3 percent, to 11,173 sales, compared with April sales of 9,523.
“The Illinois housing market showed some positive signs of stabilizing in May, with a sizable jump in sales from the previous month and the fourth consecutive month-to-month increase,” said Kay Wirth, president of the Illinois Association of Realtors.
The National Association of Realtors reported Thursday that sales of existing single-family homes and condominiums edged up 2 percent in May, to a seasonally adjusted annual rate of 4.99 million units. Even with the small gain, it was still 15.9 percent below the depressed levels of a year ago.
The median price of an existing home sold in May dropped to $208,600, 6.3 percent lower than a year ago. The median is the point where half sell for more and half sell for less. It was the fifth biggest year-over-year price decline in records that go back to 1999.
http://www.illinoisrealtor.org
Area home sales plunge; prices steady
Chicago Tribune