Illinois Realtors recently reported that home sales in July were down 6.8 percent from the same month last year.
The statewide median price in July was $199,000 -- 4.7 percent higher than the median price of $190,000 in July 2015.
State Rep. Jeanne Ives, R-Wheaton, said with more than 30,000 jobs lost in July, she believes the drop in home sales this year can be linked to the state’s turbulent economy.
“I think there’s a correlation there between home sales plummeting and people leaving the workforce,” she said.
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Data shows that there were 65,998 homes on the market – a 14.4 percent drop from July 2015 when there were 77,069 homes up for sale.
According to the Federal Home Loan Mortgage Corp, in July 2016, the monthly average commitment rate for a 30-year fixed-rate mortgage was 3.44 percent, down from 3.57 percent in June and 4.04 percent in July 2015.
Ives added that she didn’t think the housing data provides as many answers as it could have.
“In my area at least, what you’re finding out is if that home goes for sale, there’s a huge discounting taking effect because of property taxes,” she said. “So folks are actually factoring it into the sale price and adjusting the sale prices for the heightened property tax.”
Ives said she knows a number of people who have opted to rent instead of buying a home because they are unsure if they can afford to stay in Illinois.
“It’s really a sad commentary (because) so many of those folks have really invested in the community – a lot of time, a lot of volunteering whether it’s church or school or whatever -- and they’re giving up a lot to make that move,” she said. “But when you can’t financially make it, you have to do something.”
Sales and price data is generated by closed sales reported by 28 local boards and associations affiliated with Illinois Realtor.