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McHenry County home sales fall 13.3 percent in July

Published: Thursday, Aug. 21, 2014 12:04 p.m. CDT • Updated: Thursday, Aug. 21, 2014 11:52 p.m. CDT

CRYSTAL LAKE – Amid a broader national real estate recovery, McHenry County home sales fell 13.3 percent in July as prices increased and inventory remained flat.

Sales of existing homes in McHenry County declined 13.3 percent to 457, down from 527 in July 2013, according to figures released Thursday by the Illinois Association of Realtors. Through the first seven months of the year, home sales are down 9.9 percent to 2,588, compared with 2,873 during the same period in 2013.

The median sales price for homes in McHenry County increased to $177,000 last month, up 7.3 percent from $165,000 in July 2013. Year-to-date, real estate prices are up 10 percent compared with the same period last year.

In July, the median sales price for single-family homes was $197,500, an increase of 8.4 percent. For condos, prices were up 5.2 percent to $121,000.

Countywide, real estate prices remain below peak levels.

The inventory of homes for sale in McHenry County last month remained flat with 2,414 homes on the market, a 0.2 percent increase from the 2,408 homes on the market in July 2013. Homes also spent less time on the market. The number of days on market until sale dropped 16.3 percent to 72, down from 86 in July 2013.

In Lake County, existing home sales fell 12.8 percent in July to 1,057, down from 1,212 in July 2013. The median sales price for all properties in Lake County increased 6.8 percent last month to $235,500, compared with $220,000 in July 2013. The inventory of homes for sale in Lake County in July declined 1.3 percent to 4,737, down from 4,799 in July 2013. The number of days on market until sale was 52, a decline of 18.8 percent from 64 in July 2013.

In Kane County, existing home sales in July were down 13.5 percent to 720, compared with 832 in July 2013. The median sales price in Kane County last month was $184,500, an increase of 6 percent from $174,000 in July 2013. The inventory of homes for sale in Kane County in July was up 0.7 percent to 3,138, up from 3,116 in July 2013. The number of days on market until sale was 57, down 12.3 percent from 65 in July 2013.

Nationally, sales of existing U.S. homes rose for the fourth straight month in July to their highest level in nearly a year, the latest sign that the housing recovery is picking up after stumbling at the start of the year.

The National Association of Realtors says home sales rose 2.4 percent to a seasonally adjusted annual rate of 5.15 million, the highest since last September.

More homeowners are selling their homes, mortgage rates remain low and home price gains have slowed this year. That's made home purchases more affordable.

Sales peaked in July 2013 and then fell as interest rates rose from low levels. Harsh winter weather also slowed sales earlier this year. As a result, July's sales were still 4.3 percent lower than a year ago. They also remain below the 5.5 million considered consistent with a healthy housing market.

Still, the rise in home sales comes after other encouraging data show that the housing market is improving. Steady job gains and rising consumer confidence have led more Americans to purchase homes. That's a contrast from earlier this year, when weak sales and limited homebuilding led economists to peg housing as a missing piece of the economic recovery. Federal Reserve Chair Janet Yellen recently told Congress that housing has been disappointing this year.

But new-home construction surged 15.7 percent in July to a seasonally adjusted annual rate of 1.09 million homes, the government said Tuesday.

And applications for building permits, considered a good sign of future activity, also showed strength in July, advancing 8.1 percent to an annual rate of 1.05 million after declining in the prior two months.

The Realtors report also showed that an increasing share of sales are healthy ones. Fewer home sales stemmed from foreclosures or involved homes where the seller owed more on their mortgage than the home was worth. Those "distressed" sales made up just 9 percent of sales, the lowest proportion since the Realtors began tracking the figure in October 2008. Distressed sales, which are usually at much lower prices, made up 36 percent of sales in 2009.

Home prices are increasing at a slower clip, which should help ease affordability pressures.

Data provider CoreLogic said that prices rose 7.5 percent in June compared with 12 months earlier. That's the smallest year-over-year gain in 20 months.

And average rates for 30-year mortgages fell to 4.12 percent from 4.14 percent, mortgage company Freddie Mac said last week. Mortgage rates are below recent peaks of about 4.5 percent at the beginning of the year.

• The Associated Press contributed to this report.

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