With housing inventory reaching lowest mark since 2008, Illinois’ February home sales dip
February year-over-year home sales fell in Illinois as the number of available homes reached its lowest mark since 2008, according to data from Illinois REALTORS®.
In February 2024, statewide home sales (including single-family homes and condominiums) of 7,576 homes sold was 1.2 percent lower than 7,668 sold in February 2023. In February there were only 15,502 homes for sale statewide, the lowest number recorded since Illinois REALTORS® began tracking that data in 2008. The February 2024 level was 14.4 percent less than the 18,107 homes on the market in February 2023.
The monthly median price of $265,500 in February 2024 was 10.6 percent higher than it was the year before at $240,000. The median is a typical market price where half the homes sold for more and half sold for less.
“Even though February home sales were down slightly, I feel confident a growing number of consumers are feeling better about the economy and are anticipating more positive news on reduced interest rates,” says Matt Silver, Illinois REALTORS® 2024 President and partner and senior broker for Corcoran Urban Real Estate in Chicago. “And to improve our woeful housing shortage, we’re working diligently with state lawmakers on several legislative measures that will create housing that is more affordable around the state.”
In the nine-county Chicago Metro Area, February 2024 home sales (single-family and condominiums) totaled 5,071 homes sold, down 0.3 percent from February 2023 sales of 5,084 homes. In February 2024, there were only 10,166 homes for sale in the Chicago Metro Area, a 19.1 percent decrease from 12,567 homes on the market in February 2023. The median price of a home in the Chicago Metro Area in February 2024 was $320,000, up 10.3 percent from $290,000 in February 2023.
“The housing market is continuing its long-running trend of low sales and relatively high prices,” said Dr. Daniel McMillen, professor of real estate and associate dean for faculty affairs at the University of Illinois-Chicago College of Business Administration. “However, consumer confidence has been high for several months now, and sales traditionally increase significantly in spring. We expect the recent trends toward lower inflation rates, interest rates, and unemployment rates to lead to a rebound in the housing market beginning in April.”
The city of Chicago saw a 6.7 percent year-over-year home sales increase in February 2024 with 1,321 sales, up from 1,238 in February 2023. In February 2024, there were only 4,111 homes for sale in the city of Chicago, a 20.3 percent decrease from 5,155 homes on the market in February 2023. The median price of a home in the city of Chicago in February 2024 was $330,000, up 6.5 percent in February 2023 when it was $310,000.
“Sellers drove the market in February, as seen in the increase in both closed sales and median sales price,” said Drussy Hernandez, president of the Chicago Association of REALTORS® and vice president of brokerage services for Coldwell Banker Realty in Chicago. “Competitively priced homes are moving quickly, and multiple offer scenarios are commonplace due to strained inventory and buyer demand.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 22 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of March 8, 2024, for the period Feb. 1 through Feb. 29, 2024. The Chicago Metro Area, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Based on the Freddie Mac data, the monthly average commitment rate for a 30-year, fixed-rate mortgage was 6.78 percent in February 2024, up from the previous month of 6.64 percent. The February 2023 average was 6.26 percent.
Find Illinois housing stats, data and the March 2024 forecast from the Stuart Handler Department of Real Estate at the University of Illinois at Chicago College of Business Administration at http://www.illinoisrealtors.org/marketstats/.
Illinois REALTORS® is a voluntary trade association whose more than 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
