November of this year brought about a surprising increase in sales to the Chicago area, 71.6% to be exact, from November of 2008.  According to the Illinois Association of Realtors, there seems to be a few key reasons for this trend which shows this as the fifth month for the year over year improvement.

-    Built-up Demand from Buyers
-    Low Interest Rates
-    Government Tax Credit for First Time Home Buyers

The increase is also at an incredible rate due to the struggling economy of 2008.  October and November of last year brought about the lowest home sales Chicago had seen in years as it reflected the nations’ financial crisis.  A market on the rise stimulates trust and, hopefully, will bring about a resurgence of both motivated buyers and sellers.

And, although these statistics show a stumbling economy gaining balance and strength… we are not yet fully up and running.  Median prices for homes in Chicago continue to fall.  

In November, the median home sale was $189,000 bringing the average down 9.1% last year at that time.  Below are more examples of this sales increase/price decrease trend.

-    Total regional sales for this year were at 6,826.  Last year this number was at 3,978.
-    The City of Chicago saw 1,859 market sales for November as opposed to last year’s 1,094.
-    Median sales in the city are down 3.4% from last year with an average price of $215,000.
-    Total Illinois sales were at 10,361 in November of this year, bringing sales up 64%.
-    Statewide median price was $155,000 a decrease of 4.3% from November 2008.
-    The average interest rate last month, according to the Realtors’ release, was 4.93% for a 30-year fixed-rate mortgage which is 5.0% lower than last year.

As this year draws to a close, one can only hope that the real estate market continues to see positive results.  The tax credit extension until April 30, along with the continued recovery from economic shock should contribute to the markets’ trend persistent development.

Source of Information, Chicago Business Website: