PRNewswire reported yesterday that, after nearly a full year of home sales gains statewide, the rush to meet the homebuyer tax credit deadline combined with weak job and economic reports led to a lull in Illinois home sales activity in July.
According to a report by the Illinois Association of REALTORS® (IAR), total home sales (single-family and condominiums) comparing July 2010 to July 2009 in McLean County reported a 4.3 percent gain in the median home price, with homes selling in July 2010 for an average of $169,500. This is a good indicator of local growth, when statewide total home sales in July 2010 were down 29.7 percent.
Mike Onorato, GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real Estate in Coal City says “The underlying issue for stability in the housing market remains a healthy job market. We need some significant boosts in economic development, employment and consumer confidence to reduce foreclosures and create some equilibrium between supply and demand for housing. Slower sales and rising inventories will force more downward pressure on prices.”
The unemployment rate nationally was unchanged in July at 9.5 percent; the Illinois unemployment rate lowered -0.1 point to 10.3 percent in July from the previous month.
Roxanne Huxford of Keller Williams Realty in Bloomington reports that, in a fairly steady local market, the number of new construction sales is down by about 1 percent, and the average price is up by almost 1 percent on the same time period last year. The same statistics hold true for resale homes.
Huxford also reports that interest rates are at a historic low rate. Right now, rates are approximately:
30 year fixed 4.25%
15 year fixed 3.87%
If you are a first time homebuyer, now is a great time to buy, Roxanne says. “You can get more house for your money because interest rates are low and you have more purchasing power. Sellers are competing with many other homes so they are more receptive to offers from buyers.
If you have been in your home for a while, it is a great time to move up or down size. Your home has increased in value and you can take advantage of financing at a low interest rate.
Plus for every buyer there is a tremendous inventory of homes to choose from. Sellers have repaired, upgraded, improved and staged their homes, and they are ready to sell!”
And don’t forget, if you are a first time home buyer, you may qualify for downpayment or closing costs assistance through Mid Central Community Action.
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Susan Pryor
