Home sales in Chicago area drop sharply

Home sales in the Chicago metropolitan area plummeted 27.9 percent in June from a year earlier, and prices dropped as well, the Illinois Association of Realtors said Thursday, blaming low consumer confidence and a troubled economy.

There were 7,656 homes sold in the Chicago metropolitan area last month, compared with 10,612 in June 2007.

The median home sale price fell 3.3 percent to $256,000 last month, from $264,700 in June 2007.

The price in Cook County slipped 0.9 percent to $274,500 from $277,000.

“There continues to be large local market variations statewide,” said Realtor Kay Wirth, president of the association, in a released statement.

“Low consumer confidence, higher gas and food prices, plus turmoil in the financial markets and a tighter credit market have kept some would-be buyers on the sidelines despite the fact there are great deals to be had.”

Statewide sales fell 27 percent to 11,643, from 15,945, and the median price dropped 6.1 percent to $200,000 from $213,000.

“Record oil prices continue to buffet the U.S. economy,” Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, said in a released statement.

“Forecasts for the next three months suggest continuing declines in home sales compared to the same months last year. Price declines comparing year-to-year will be more moderate in Chicago at around 35 percent and 5.5 percent in the state.”

The National Association of Realtors said sales dropped by 2.6 percent last month to a seasonally adjusted annual rate of 4.86 million units. That’s more than double the expected decline. It leaves sales 15.5 percent below where they were a year ago.

The downward slide in sales is depressing prices nationally, too. The median price for a home sold in June dropped to $215,100, down by 6.1 percent from a year ago. That was the fifth largest year-over-year price drop on record.

Contributing: AP