June home sales plunged 11.2 percent
Tuesday, Jul 23, 2019 - Posted by Rich Miller
* Statewide sales dropped 11.2 percent in June…
Home sales prices across the state and in the greater Peoria and Bloomington areas plunged in June. That’s according to Illinois Realtors.
The trade group says the Peoria metropolitan area recorded 504 sales in June, 14 percent less than a year ago. The median sales price jumped nearly five-percent from May to $133,450. The Peoria Metropolitan Statistical Area includes Peoria, Woodford, Tazewell and Marshall counties.
The Bloomington metropolitan statistical area’s June sales dropped 21.2 percent to 268. The month-over-month median sales price pushed 3.4 percent higher to $164,250. […]
Only a third of Illinois counties recorded June sales gains. The Moline-Rock Island and Springfield areas posted the strongest numbers. The Decatur and Bloomington regions were among the worst performers.
* Crain’s…
With a double-digit plunge in home sales in June, the Chicago area’s housing market reached its 12 consecutive month of declines.
In Chicago, 2,766 homes sold in June, 13.3 percent below June 2018, according to data released by Illinois Realtors, the statewide trade group.
In the nine-county metropolitan area, 12,002 homes sold, down 11.6 percent from a year earlier.
The local declines were far steeper than the national dip. Nationwide, home sales fell 2.2 percent in June from a year ago, according to data released separately by the National Association of Realtors.
Speaking of the national dip, NAR’s chief economist, Lawrence Yun, said in comments released with the national data that “Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure.” He said it’s “too soon to know how much of a pullback” is related to the reduction of homeowners’ property tax deductions in last year’s tax reform package.
* Analysis from the Illinois Realtors…
“The market choppiness that we have seen throughout the year continued in June, with home sales once again lagging previous-year numbers and sellers struggling to provide the number of homes consumers want,” said Ed Neaves, president-elect of Illinois REALTORS® and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “The good news for consumers is that median prices are not appreciating nearly as fast as they have in years past, so for the truly dedicated house-hunter there is opportunity.”
The time it took to sell a home in June averaged 45 days, the same as a year ago. Available inventory totaled 58,376 homes for sale, a 4.1 percent decline from 60,898 homes in June 2018. […]
“Housing affordability is being discussed once again as a contributor to sales declines that are once again lower than those recorded last year for the same month,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Price increases in Chicago and Illinois last month were barely positive and the increase in apartment rentals and declines in consumer sentiment indices suggest that many potential home buyers are sitting on the sidelines, no doubt influenced by concerns about trade conflicts and the future growth of the economy.” […]
“We can’t escape the topic of tax increases right now, and prospective buyers are paying attention,” said Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “High assessments in the north, and tax increases expected in 2021, has made some leery. Still, the summer proves to be an active time for the Chicago housing market. For buyers, rates remain low and market time and inventory has increased, meaning there is more choice and more time to make key decisions. For sellers, prices remain relatively steady, and pricing appropriately is key.”
* But this is from their May analysis, so take everything with a grain of salt…
Statewide home sales (including single-family homes and condominiums) in May totaled 17,034 homes sold, down 1.3 percent from 17,256 in May 2018. […]
“The housing market is showing clear signs of strengthening as we enter the summer months,” said Ed Neaves, president-elect of Illinois REALTORS® and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “The data suggest healthy buyer demand remains a fixture this year, while at the same time home sellers are still poised to make a modest profit.”
- Lucky Pierre - Tuesday, Jul 23, 19 @ 3:39 pm:
“The good news for consumers is that median prices are not appreciating nearly as fast as they have in years past”
Talk about sewing a silk purse from a Sow’s ear after a decade of no appreciation.
Illinois real estate has yet to recover from the 2008 recession and is down 12% while the national average is up 1%
https://www.corelogic.com/downloadable-docs/corelogic-peak-totrough-final-030118.pdf
- 44th - Tuesday, Jul 23, 19 @ 3:46 pm:
You mean people aren’t racing to buy into Illinois and pay sky high taxes?
- City Zen - Tuesday, Jul 23, 19 @ 3:58 pm:
Blame It On The Rain. (wait, that was May)
- Soccermom - Tuesday, Jul 23, 19 @ 3:58 pm:
The cap on state and local tax deductions is hitting the suburbs HARD. It seems like every house in River Forest has a for sale sign.
This aspect of the new tax bill was designed as a gut punch to residents and electeds in the blue states. Because people don’t understand why their property taxes don’t fall when their housing values decrease. (It’s because the change in housing prices doesn’t affect the levy.) So next year, the GOP is going to be able to say to angry homeowners in Democratic strongholds: Thanks to your Dem leaders, you’re paying crazy high taxes while the value of your home is disintegrating in front of your eyes.
this was all intentional
- A guy - Tuesday, Jul 23, 19 @ 4:02 pm:
Could be lots of reasons for this.
The young ‘uns prefer to rent.
There’s less incentive with the interest/tax deduction to owning vs. renting.
We already know our state is losing some population.
The cream jobs in the NE of the state are in the city. That’s where they’re moving and they’re renting.
Most the folks who want a house have one.
Fewer children being born, less movement to where houses and lawns are.
It’s too darn hot to look at them.
Could be any or all of these.
- Steve - Tuesday, Jul 23, 19 @ 4:04 pm:
The SALT limitation fallout might make some voters more tepid about unknown world of progressive state income taxation. We’ll find out in November of 2020.
- Former Illni - Tuesday, Jul 23, 19 @ 4:06 pm:
Taxes, nuff said
- City Zen - Tuesday, Jul 23, 19 @ 4:12 pm:
==The young ‘uns prefer to rent.==
And they don’t seem interested, either aesthetically or financially, in the McMansions of the previous generations.
Your dream home built in the Chicago ex-burbs in the 1990’s may end up being the dream home for you and no one else.
- Soccermom - Tuesday, Jul 23, 19 @ 4:20 pm:
Let’s not forget that the younguns also are dealing with crippling debt
- A guy - Tuesday, Jul 23, 19 @ 4:28 pm:
The young uns are beginnin’ to think of those parental basements as “Garden Apartments.”
Separate entrance makes ‘em too good to leave. Little creeps are havin’ slumber parties too. Not big ones, mind you…
- Steve - Tuesday, Jul 23, 19 @ 4:29 pm:
- Soccermom -
JB’s higher gas taxes will help them save for the future.
- Skeptic - Tuesday, Jul 23, 19 @ 4:35 pm:
If we only had term limits, home sales would be through the roof!
“It’s too darn hot to look at them.” These are June sales, so it wasn’t too hot, the streets were closed due to flooding.
- DuPage Moderate - Tuesday, Jul 23, 19 @ 4:42 pm:
If anyone thinks that this is the result of anything but taxes they need to get their heads examined. It’s only going to get worse.
- Rich Miller - Tuesday, Jul 23, 19 @ 4:44 pm:
===this is the result of anything but taxes===
Your evidence? Not saying it’s not, just would like to see why you say this is 100 percent so.
- Oswego Willy - Tuesday, Jul 23, 19 @ 5:00 pm:
===Many Illinois politicians think higher taxes will lead to prosperity .====
Cite please.
Thanks.
- Enviro - Tuesday, Jul 23, 19 @ 5:15 pm:
==Let’s not forget that the younguns also are dealing with crippling debt==
Crippling debt plus low wages and job insecurity are hurting our young people and making it nearly impossible to buy a home.
- njt - Tuesday, Jul 23, 19 @ 5:30 pm:
===If anyone thinks that this is the result of anything but taxes they need to get their heads examined. It’s only going to get worse.===
You still pay for taxes when you rent.
- Blue Dog Dem - Tuesday, Jul 23, 19 @ 5:47 pm:
SALT. Shmalt. Its property taxes.
- Not a Billionaire - Tuesday, Jul 23, 19 @ 6:13 pm:
Also cost of new construction has gone up way more than inflation and that includes roads. What little I find is there are fewer contractors.A big problem is most of what the state pays for medical and construction are the main inflation drivers.
- Gruntled University Employee - Tuesday, Jul 23, 19 @ 8:10 pm:
Our last recession was 11 years ago, that’s the longest cycle of growth we’ve ever had. An overdue recession before the 2020 election will be a game changer.
- Suburban Mom - Tuesday, Jul 23, 19 @ 9:17 pm:
We are home shopping in the Chicago ‘burbs, and it is SUCH a slow market, not nearly as much is coming on the market as our Realtor expected (and as we saw the prior two years when we were watching the market but not shopping).
We are also seeing — in Cook County — lots of disparate taxes on similarly-valued houses. A $500,000 house can have $12,000 in yearly property taxes or $8,000. Which I know is part and parcel of the property tax scandal in Cook County over the last few years, but it’s just so starkly illustrated when you’re shopping and seeing such huge differences in houses that sell for similar amounts.
- Looking down the Road - Tuesday, Jul 23, 19 @ 10:12 pm:
OW -
===Many Illinois politicians think higher taxes will lead to prosperity .====
Cite please.
Here it is:
“We have a proposal before us that eliminates the structural deficit, puts our state on a path to fiscal prosperity, puts our state on a path to ensuring future legislatures are not forced, as we have been, to raise taxes,” Martwick said.
- DuPage Moderate - Tuesday, Jul 23, 19 @ 10:16 pm:
Rich:
Because it’s all anyone is talking about in my circle and with my clients. Can’t get away from it and it’s significantly chilling the market.
- Oswego Willy - Tuesday, Jul 23, 19 @ 10:20 pm:
===…”…ensuring future legislatures are not forced, as we have been, to raise taxes,”===
To prosperity? Oh… you mean this part…
===…eliminates the structural deficit, puts our state on a path to fiscal prosperity===
The thing is, the debt needs to be paid, to get the state… see
see what I did there… the state… on a path.
I’ll let you choose;
Keep the debt, not pay it off, see how that goes.
Try to pay down the debt, now, so “… future legislatures… “
It’s always amazing that recognizing that paying down the debt leads to good things, but this “want” to twist it to frivolous things and fiscal mismanagement is the default.
I asked for the cite because I’m trying to think, given the state’s condition, of a single legislator who frivolously just wants taxes raised… and doesn’t want to pay on debt or the pensions.
Even Pat Quinn… paid… you guessed it… on bills and pension debt.
- Da Big Bad Wolf - Wednesday, Jul 24, 19 @ 5:40 am:
==SALT. Shmalt. Its property taxes.==
Renters pay property taxes too, they just don’t get the deduction.
- truthteller - Wednesday, Jul 24, 19 @ 5:44 am:
homes sales figures are plummeting all around America….not just Illinois
- Looking down the Road - Wednesday, Jul 24, 19 @ 12:35 pm:
OW-
Cute. Now you are qualifying what you asked for. No politician is going to admit that he/she “frivolously just wants taxes raised”.
- Oswego Willy - Wednesday, Jul 24, 19 @ 12:46 pm:
- Looking down the Road -
===Now you are qualifying what you asked for.===
No. Rabid partisans think there is “joy” in the premise of raising taxes…
The prosperity is using those funds for fiscal health.
This is how we get the Eastern Bloc folks… those who believe “glee” occurs with more taxes. Nope.
===No politician is going to admit that he/she “frivolously just wants taxes raised”.===
LOL.
… because that’s not how it works.
I know you would like to point to those who you *think* feel that, but if Pat Quinn is one, Quinn paid down bills and paid on the pensions.
If you have an example of your conspiracy, please, don’t hide it under a bushel.
- Looking down the Road - Wednesday, Jul 24, 19 @ 1:11 pm:
First you request for a cite to support the premise that ===Many Illinois politicians think higher taxes will lead to prosperity .==== I provided one. Then you decide that’s not what you asked for and qualify the request, asking for an example of a politician that “frivolously just wants taxes raised which is a judgment that I am not making. IF you would read what I posted you might note that I did not insert any judgement regarding any tax increase. How you managed to leap to some conspiracy is beyond me.
You asked for a cite. I provided it.
- Oswego Willy - Wednesday, Jul 24, 19 @ 10:21 pm:
===How you managed to leap to some conspiracy is beyond me.
You asked for a cite. I provided it.===
Congrats.
…
Ok, now what?
- Oswego Willy - Wednesday, Jul 24, 19 @ 11:14 pm:
===No politician is going to admit that he/she “frivolously just wants taxes raised”.===
Question…
Why even go *here* at all, if your intentions were all… pure?