If you are interested in the latest information about the Illinois Real Estate, you have come to the right place. After covering the 2014 Illinois Housing Market, we have analyzed current data and prepared housing market predictions for the state of Illinois in 2015. After a barely visible increase of just 0.5% in 2014, the following year for the Illinois Housing Market is looking much better. Data from Zillow predicts that Illinois home values will experience a 2.1% increase in the next year. After the “Prairie State” experienced a continuous downfall from 2007 until late 2012, home values are slowly rising and are expected to go from $154,900 (as of July 2015) to $148,000 in May 2016. Currently, the median sale price for this state is $198,125. As far as rent values are concerned, the median rent price for Illinois homes is $1,550. The excellent news for Illinois residents is that the rate of unemployment for this state is constantly lowering and more and more people are enjoying stable jobs. If the unemployment rate was a staggering 9.0% just two years back, in May 2013, it has decreased to 6.0% as of April 2015, according to the U.S. Bureau of Labor Statistics.
Regarding the 2015 Housing Market for Illinois, May was quite a booming month. According to the Illinois Association of Realtors, “Statewide home sales (including single-family homes and condominiums) in May 2015 totaled 14,980 homes sold, up 5.6 percent from May 2014 when 14,187 homes sold.” This is fantastic news for individuals looking to sell their homes in the near future, but also for real estate agencies that have properties for sale in Illinois. The president of the Illinois Association of Realtors, Jim Kinney, supports this claim; he stated in a recent press release that “We’re seeing a market that is definitely working in favor of sellers. Not only is the time it takes to sell a home down from a year ago, but we are also seeing continued upward movement in the median price of a home”. This truly is an evolution compared to the disasters that the Illinois Housing Market underwent last year, and the figures are not expected to fall any time soon. Let’s look into the factors that influence Illinois Real Estate that support the housing market predictions we have explained.
Influencing Factors for the 2015 Illinois Housing Market
- Zillow states that nowadays the value of a home in Illinois is roughly $154,900, whereas the median sale price for this market is $198,125.
- The median sale price per square foot is currently $134. There was a huge leap from March to May, with a $120 median sale price per square foot in the third month of the year to a $134 average just two months later.
- Unfortunately, those who are interested in renting a home in Illinois should prepare a larger budget. While the median rent price in the United States is $1,367, for Illinois Real Estate it is $1,444. The rent list price is $1,550, with an average of $1.55 per square foot for rent. Landlords enjoy the advantage in this situation, whereas tenants that do not possess a high salary might find themselves in difficulty in this period of time.
- The health of the Illinois Housing Market is, likewise, far from its peak. Homes spend an average of 117 days on Zillow as of April 30th, 2015, but the real problem regards mortgage payment. When it comes to both negative equity and mortgage delinquency, Illinois exceeds the United States average. While the majority of Americans have a 6.0% mortgage delinquency, those in Illinois make up a total value of 6.3%. For those who are not familiar with the term, mortgage delinquency occurs when the person who owns a property does not make a mortgage payment on time. It is the first defining factor that subsequently results in foreclosure.
- As far as negative equity is in discussion, Illinois also exceeds the national average. The United States median for homes with negative equity was 15.4% as of March 31st, 2015, while the median for Illinois was 22.4%. Zillow explains that “With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.”
- The financial press predicts that 2015 will be a prosperous year for the state of Illinois. Chicago Business explains that not only will more residents be employed, but also that wages are expected to rise. According to the website, the gross metro product rate should grow anywhere between 2.3% to 3.4% this year (higher than the 1.7%-2.6% rate of 2014).
- After five years of full economic recession with even more terrible outcomes than those on a national scale, Illinois is slowly getting back on its feet. However, the State of Illinois Forecast Report of January 2015 prepared for the Commission on Government Forecasting and Accountability points out that “Longer term, Illinois has a lot of what businesses need to thrive—talent, access to customers and capital, transportation — but painful fiscal reforms are needed before it can fully capitalize on these strengths.”
- Out of all industries, the field of information technology is expected to be the most thriving of all for the state of Illinois. The same report cited above reveals that “Faster job growth in Chicago’s urban core is encouraging; there has been an explosion of tech-related hiring and corporate relocations from suburbs by firms such as Motorola Mobility and United Continental Holdings.” The jobs in this area of activity are some of the most profitable in the state. Those who are interested in buying a home in the following years should consider employment in information technology for budget stability.
Best Places to Live in Illinois
Aside from being the best place to live in Illinois, the Windy City is actually the third city in the United States by population and gross metropolitan product. This makes Chicago the city with the most residents in the Midwest (more than 2.7 million). Chicago is wonderful city to live in if you are passionate about the arts and expanding your general knowledge. The Chicago Housing Market is doing the best out of all Illinois Housing Markets, with a great $187,400 home value this year. Zillow reveals that the Chicago Housing Market currently has a “hot” market temperature. Nevertheless, rent is quite high, with an $1,655 median rent price in the area. The value of homes in Chi-Town is predicted to rise by 1.7% until May 31st, 2016. If you would like to browse homes in Chicago, you can look into the Realtor.com IL area.
The second best place to live in Illinois is Champaign. Champaign IL real estate data on Zillow states that the median home value for this city is $135,600. After a very slow increase of just 0.2% in 2014, the Champaign IL real estate market is said to experience a 2.0% growth in the following year. Individuals who are seeking more affordable rentals in the state of Illinois should consider Champaign. As opposed to Chicago, the median rent price in the city of Champaign is $860. An intriguing aspect is that mortgage delinquency in Champaign is a mere 2.8%, a great difference in comparison to the state value of 6.3%.
The capital of Illinois is yet another one of the best places in the state to live. Praised as “Flower City”, Springfield is known as the Home of “President Abraham Lincoln”. In addition to this, the Springfield Illinois Real Estate Market is expected to escalate in the following year, as opposed to its -4.2% downfall in 2014. These are terrefic signs for the Springfield il real estate. Those who are interested in investing in Springfield IL Real Estate should take into consideration the fact that the housing market is predicated to have a 4.4% increase in 2016.
If Peoria IL Real Estate is on your agenda, you should know that houses in the area are currently valued at just $87,200. After a decline of -1.8% last year, the Peoria IL Real Estate market should grow by about 2.9% until May 2016. Rents in the city are even more affordable, with a median rent price of just $800. The median sale price on the Peoria market is $123,125.
As far as Southern Illinois Real Estate is concerned, Belleville serves as the main housing market. Currently labeled as “cold” on the buying market, a home in Belleville is valued at $76.000. The future for Belleville is not looking very bright on the housing market, with a future -0.9% decline in the next year, after a -2.6% decline in 2014. With rents of just $700, Belleville is a solution for future tenants in Illinois.
Rockford Real Estate serves as the most affordable housing market in the state of Illinois. With a median home value of just $74,300, now is the time to purchase real estate in this area. The city of Rockford is expected to have a 4.7% increase in the immediate year. On the other hand, if you are a homeowner, you might want to consider waiting another year before selling your property, as it will become more valuable on the housing market.
Neighboring Competitors of the Illinois Housing Market
- 2015 Indiana Real Estate Market
- 2015 Kentucky Housing Market
- 2015 Missiouri Housing Market
- 2015 Iowa Housing Market
- 2015 Wisconsin Real Estate Market