Housing market still cold
Kane and Will counties saw home sales drop about 34 percent during the first quarter, indicating the real estate market continues to spiral around the suburbs, according to a report Friday by the Illinois Association of Realtors.
Shaky consumer confidence, bad winter weather, and rising gas and food prices all affected the real estate market, experts said.
"People should also know that 12 to 18 months ago, the underwriting criteria was very lax and you could get approved for just about any type of loan. It's not like that anymore," said Marve Stockert, executive director of the Illinois Association of Mortgage Professionals in Lombard. "The requirements for a loan and the review of appraisals are literally slowing down the whole process now."
Still, suburban Realtors said they've booked more appointments to show homes.
"Our booking for appointments on the weekends have nearly tripled in the last two months," said Connie Hofherr, a Realtor for 30 years with Starck & Co. in Mount Prospect. "While that's pretty typical for the spring time, it's been very positive since it's been stagnant up until this point."
Area counties all showed decreases ranging from about 21 percent to 34 percent in the number of homes sold during the first quarter, compared to the same period a year ago, the association report said.
Statewide home sales figures -- which include single-family homes and condominiums -- totaled 21,576, down 27 percent from 29,553 home sales in the first quarter of 2007.
In addition, the price in which those local homes sold also dropped in nearly every area county except Cook, where it increased 1.4 percent.
Statewide, the median home sale price was $187,500, down 4.3 percent from $196,000 a year earlier. The median is a typical market price where half the homes sold for more, half sold for less, the report said.
Yet in Chicago, the median price of a home increased 5.4 percent in the first quarter to $295,000, compared to $280,000 in the first quarter of 2007, the report said.
"The fundamental elements of a solid housing market are in place with low interest rates and ample inventory of homes," Kay Wirth, president of the Illinois Association of Realtors, said in a statement. "Realtors around the state report more interest from buyers at showings who waited out last fall and are ready to buy for long-term value."
An anticipated increase in home sales in the second half of the year could help the economy grow, National Association of Realtors chief economist Lawrence Yun said in a statement.
"The combination of the recently enacted fiscal stimulus package and the usual lagged impact of monetary policy decisions will further help jump-start the economy in the second half of 2008," Yun said. "That should help stem the tide of any incoming 'formal' recession."