Industry News

Real estate slowdown hits Illinois

Rising interest rates take their toll in Q2

Sales of Illinois single-family homes and condos dropped 6.1 percent in the second quarter compared to the same period last year, while home-price growth slowed to a more normal pace, the Illinois Association of Realtors reported today. A total of 50,867 single-family homes and condos were sold statewide in the second quarter, down from 54,194 units sold in second-quarter 2005. The Illinois median home-sale price in the second quarter rose 3 percent to $208,000, up from $202,000 a year earlier. "Mortgage interest rates continued to edge up in the second quarter and are the major factor in slowing down home sales from their record pace a year ago. But rates in fact remain at a very favorable level for home buyers, especially when you consider they reached 16 percent in the 1980s in Illinois and averaged 7.01 percent as recently as 2001," said Stan Sieron, president of the Illinois Association of Realtors. "The Illinois housing market continues to benefit from strong job gro...