More than 7,000 consumers in the Chicago-area bought themselves a home last month, the best finish for the year since December 2006, just before the local housing market's bubble burst.
December sales of existing homes in the nine-county area rose 19.2 percent from a year ago, to 7,372 single-family homes and condominiums sold, the Illinois Association of Realtors reported Tuesday. The median price of $151,500 recorded for the month rose 4.5 percent, from $145,000 in December 2011.
In terms of volume, it was the best monthly performance for the market since December 2006, when 7,530 homes were sold. Twelve months later, in December 2007, the number of homes sold locally had plunged to 5,033.
While it showed improvement, last month's $151,500 median price was far below the December 2007 market high of $247,800.
Pricing recovery was even more evident within the city of Chicago, which recorded a 14.6 percent year-over-year increase in sales, to 1,806 properties sold at a median price of $185,000, up 19.4 percent from December 2011's $155,000.
The pricing improvement is largely a result of the continued shrinking inventory of quality homes on the market, which for months has meant homes are going under contract faster than they have in the past. Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers.
"The 18.9 percent decrease in market time from the same time in 2011 shows a continued clearing of inventory, of both single-family homes and condominiums, which should prompt action among buyers and sellers and continue to promote home price stabilization," said Zeke Morris, president of the Chicago Association of Realtors.
Sales of Chicago condos swelled to 1,037 units sold, up 17.7 percent from a year ago, and the median sales price of $235,000 for a unit was up 28.8 percent from last year.
The median price is the point at which half the homes are sold for more and half for less.
"I believe we're going to have the most promising spring market we've had in years," said Zeke Morris, president of the Chicago Association of Realtors. "We can give (sellers) a slightly more confident expectation."
The pricing improvement is largely a result of the slim pickings of properties listed for sale, which for months has meant homes are going under contract faster than they have in the past.
Compared to a year ago, inventory has plunged. For instance, in Chicago, there were 14,183 homes for sale in December 2011. Last month, there were 8,036 listed properties, or 43.3 percent less. As a result, the average number of days it took to sell a Chicago home fell almost 19 percent year-over-year, to 77 days last month.
Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers, both owner-occupants and investors.
"We have a lot of pending deals out there," said Mabel Guzman, an @properties real estate agent. "Sellers are holding onto their price, knowing they're the only thing in the market. People are going to get frustrated if there isn't enough product to buy."
For the year, 90,365 homes were sold in the Chicago area, a 26.7 percent increase from 2011, while the median price slipped 1.5 percent, to $160,000. In the city, the annualized median price rose 5.7 percent, to $185,000, for the 22,333 homes sold, a gain of 22.4 percent in sales volume.
According to the Federal Home Loan Mortgage Corp., the average commitment rate for a 30-year, fixed-rate mortgage in the Chicago area was 3.32 percent in December, compared with 3.33 percent in November and 3.94 percent in December 2011.
mepodmolik@tribune.com | Twitter @mepodmolik
