Home sales across Illinois saw a major decline in June 2024 compared to the previous year, according to an Illinois realtors’ advocacy group. Despite this drop, there were some encouraging trends, including a slight increase in homes listed for sale and record-breaking property values. This shift in the market reveals a mix of challenges and opportunities for both buyers and sellers in Illinois.
Home Sales Fall by 16.7% Compared to June 2023
The number of homes sold in Illinois during June 2024 was significantly lower than in June 2023. The state recorded a total of 12,422 homes sold, which marked a sharp 16.7% decrease from the 19,917 homes sold during the same month last year. This drop highlights a cooling trend in the real estate market, which may be influenced by economic factors like higher mortgage rates and affordability challenges for buyers.
More Homes Listed for Sale, Providing Buyers with Options
While home sales have dropped, there is a slight improvement in the number of homes listed for sale. In June 2024, the inventory of homes available was 1.9% higher than in June 2023. This increase, though small, could signal that sellers are more willing to list their properties, providing buyers with more choices in a competitive market. As inventory grows, it may help ease some of the challenges faced by buyers trying to navigate high prices and limited availability.
Illinois Hits Record-High Median Home Prices
Despite the dip in sales, Illinois real estate saw its median home price climb to an all-time high in June 2024. The median price was $315,050, an 8.6% increase from June 2023. This is the highest price recorded since tracking began in 2008. The appreciation in home values reflects the strong demand for properties in Illinois, even as higher mortgage rates make buying less accessible for some.
The surge in home prices also highlights a growing trend of home equity gains for current homeowners, which can be a positive factor for those looking to sell or refinance.
Industry Experts Weigh in on Market Trends
Matt Silver, the 2024 President of Illinois REALTORS® and a senior broker with Corcoran Urban Real Estate in Chicago, shared his thoughts on the changing market. “We are thrilled to see Illinois homes gaining value and more inventory coming to the market, even if slightly,” he said. Silver noted that the increase in listings is a step in the right direction, offering buyers more options while signaling that sellers are loosening their hold on properties.
“Consumers must have plenty of choices in the housing market,” he added, emphasizing the importance of balance between supply and demand. Experts like Silver remain optimistic that the market is gradually improving for buyers and sellers alike.
Rising Mortgage Rates Add Challenges for Buyers
Higher mortgage rates are another factor affecting the real estate market in Illinois. According to data from Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage they reached 6.92% in June 2024, up from 6.71% the year before. This increase in rates can make monthly payments more expensive, potentially discouraging buyers from entering the market or limiting how much they can afford to spend.
The higher costs associated with borrowing may also explain the drop in home sales, as some buyers wait for rates to stabilize or come down before making a purchase.
A Mixed Picture for Illinois Real Estate
The Illinois real estate market in June 2024 presents a complex picture. On one hand, fewer homes are being sold, and higher mortgage rates are creating barriers for buyers. On the other hand, the slight increase in inventory and record-breaking home values signal opportunities for those who can navigate the challenges.
Experts suggest that as more homes are listed for sale, the market could become more favorable for buyers, creating a healthier balance between supply and demand. Meanwhile, rising property values continue to boost the financial positions of homeowners, adding another layer of complexity to the market dynamics.
As Illinois moves forward, the combination of these trends will shape the housing market and influence decisions for both buyers and sellers. Whether you’re entering the market or holding onto a property, staying informed about these changes is key to making the best decisions.
