Chicago-area sales of existing homes posted a seventh consecutive month of year-over-year gains in January, but fell far short of December’s sales pace.
While there were 3,922 sales of area single-family homes and condominiums last month, a 29.2 percent increase from January 2009, the sales volume dropped 32.1 percent from December. Within the city of Chicago, January sales were up 31.1 percent from a year ago but down 32 percent from December, and the median sales price dropped 7.1 percent in a month’s time, the Illinois Association of Realtors said Friday.
That same pattern, sales better than a year ago but worse since last month, is occurring elsewhere in the nation and is raising concerns over whether a housing recovery — one subsidized by the federal government — is taking hold. Many economists worry that buyers rushed to take advantage of tax credits, bargain prices and low interest rates late last year, in effect borrowing from future demand.
"The latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery," said Lawrence Yun, chief economist at the National Association of Realtors.
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