Sue Fox, @Properties. Direct 773.816.1788

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Home sales up 28% in June as prices slip

filed under: Andersonville, Bungalows, Buyers, Chicago home prices, Chicago home sales, First-time buyers, Market conditions, Tax credits posted on July 22nd, 2010

BUNGALOW BEAUTY: This restored historic bungalow in Andersonville was one of the 2000 Chicago homes that sold in June.

BUNGALOW BEAUTY: This restored historic bungalow in Andersonville was one of the 2,526 Chicago homes that sold in June. With a fireplace, built-in bookshelves, a gourmet kitchen, a full finished basement and a landscaped backyard, this home attracted multiple offers. I sold it in 3 days!

You can really see the impact of the $8,000 tax credit for first-time buyers. In June, the final month buyers could claim the credit, Chicago home sales shot up nearly 28% over the previous June, according to data released today by the Illinois Association of Realtors. That marks the 1oth consecutive month of year-over-year increases in Chicago.

But just because more properties are changing hands doesn’t mean home prices are recovering. In fact, the opposite is true in Chicago. The median home price, now $234,250, is down 3.2% compared to a year ago.

Genie Birch, president of the Chicago Association of Realtors, pointed out that the year-to-date number of homes sold in Chicago is up 41% for the first half of 2010 versus 2009. “We believe this is a positive indicator that Chicago’s housing market is stabilizing,” she said. “Motivated buyers and sellers are working toward realistically closing deals at current market values.”

I have my doubts about whether our market is truly stabilizing, or whether we are just witnessing a final surge of home sales fueled by a government stimulus program that no longer exists. Congress has since extended the date to close on a home purchase through September (provided you were already under contract by April 30) to help people seeking the tax credit who were unable to close by June 30, the original deadline.

So we may yet see a slight swell of closings in July, August and September that were actually spurred by the tax credit. But that doesn’t mean our local housing market is healthy enough to stand on its own.

Written by Sue Fox //

  1. Rebecca

    Just noticing how sunny it was the day this photo was taken.

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