Chicago Home Sales, Prices Plunge in July

Home sales in the Chicago area are down more then 25 percent in the last year, likely a result of the end of federal tax credits and a continued slump in the economy.

Just over 7,400 homes were sold in the Chicago area in July 2009. Just 5,561 homes were sold last month. And those homes that did sell went for less. The median home price plummeted 19.8 percent, to $196,500.

Home sales statewide dropped 29.7 percent to 8,135, and the median price fell 4.3 percent to $160,000.

Nationally, sales dropped 25.5 percent to 3.3 million, while the median price edged up 0.7 percent to $182,600.

Improvements aren’t expected soon.

"People need to have money to be able to buy," said Genie Birch, President of the Chicago Association of Realtors. "They need to have a job to continue to make their payments. It's not rocket science."

The unemployment rate in Illinois was 10.3 percent in July. Nationally it stood at 9.5 percent.

But there is likely some good news.

"I think we've seen the worst. I think it can probably only get better from here, but it's going to be a year or two before things really stabilize. That's the way it feels," said Mike Hulett, who has been trying to sell a condo in one Bucktown building for more than a year.