January, 2017

2016 ILLINOIS HOUSING MARKET ENDS ON HIGH NOTE

Will and Grundy Counties report strong sales

According to statistics compiled by the Illinois REALTORS®, both home sales and median prices in the state of Illinois finished 2016 on an upward trend during a year marked by tight housing inventories and continued strong consumer demand. Statewide home sales totaled 162,380 up 3.9 percent from 156,239 reported in 2015. The year-end median price reached $184,000 compared to $173,000 the previous year. The median is a typical market price where half the homes sold for more and half sold for less. The average time it took to sell a home in Illinois in 2016 was 63 days down from 70 days in 2015. Will County recorded 10,631 closed sales last year which is up slightly over 10,583 sales in 2015. The median sales price in Will County went from $183,000 in 2015 to $199,654 last year which is an increase of 9.1 percent. Grundy County had 689 closed sales in 2016 versus 636 sales the previous year which is an 8.3 percent increase. The median sales price in Grundy County was $163,000 compared to $162,700 in 2015. Three Rivers Association of REALTORS® President Matt Persicketti said “our members have been encouraged with the increase in market prices and decrease in market time. When a good house that is priced right goes on the market, it generally sells quickly. There is definitely a need for more houses to fill the demand.”

The National Association of Realtors reported that existing home sales closed out 2016 as the best year in a decade. Addressing the Illinois REALTORS® at their Public Policy meetings last week in East Peoria, the chief economist at realtor.com, Jonathan Smoke, said that low housing inventory is likely to have a significant impact on the 2017 housing market. In Illinois, year-end inventory dropped to 50,213 down 15.7 percent from 2015 and at the lowest level since 2008. Smoke said that there has been an uptick in new home construction which will add to the potential supply. He added other factors which should contribute to a healthy housing market include mortgage rates are still considered historically attractive and affordable, consumer confidence is at a 15-year high and credit access is improving.

The Three Rivers Association of REALTORS® represents over 900 members primarily in Will and Grundy Counties dedicated to professional and ethical service for their real estate clients.