Housing sales down from year ago - But mortgage rates remain at low ebb

Third quarter housing sales were down from the record-setting span a year ago, but Illinois Realtors point out that the market remains strong with mortgage interest rates remaining near 45-year historic lows.

The recently released figures from the Illinois Association of Realtors show total home sales were down 14.7 percent in the third quarter. That's 46,759 homes sold compared to 54,804 homes sold in the period July through September of 2005.

Fewer homes were sold in metro-east from July through September than that same span a year ago. St. Clair County sales were down by 16.5 percent, Monroe County numbers decreased by 11.8 percent and Madison County was off by 9.2 percent.

However, interest rates for 30-year, fixed-rate mortgages remained low, averaging 6.6 percent, according to the Federal Home Loan Mortgage Corp.

Greater Gateway Association of Realtors Executive Director Al Suguitan, who oversees real estate activity in Madison, Calhoun, Jersey, Fayette, Montgomery, Greene and part of Macoupin counties, said the decrease in sales is not very significant. Suguitan believes the Illinois housing market is undergoing a correction.

"This is the correction, the bump in the road, the blip on the screen, whatever you want to call it," Suguitan said. "There was expectation that it was going to happen. I think 2004 was the flagship year as far as units sold. Now, we're not doing badly. In fact, we're going to have an ad on cable TV that says things are OK. Interest rates are low, employment is high and there is a lot of inventory out there, so jump in it."

At the Realtors Association of Southwestern Illinois, which represents St. Clair, Monroe and surrounding counties, president Chad Doyle said he is noticing a gradual upswing in home showings.

"The prices in our area are stilling holding, which is a good sign," Doyle said. "We're going to be looking at a strong 2007."

Illinois Association of Realtors President Robert Zoretich said 2006 is shaping up to be the third-best year for Illinois home sales. Zoretich, a Chicago broker-owner, said the association projects a more balanced market between buyers and sellers by early spring and future price gains.