State and La Salle County home sales both increased for June over May by 21 percent.

But the numbers still lag behind sales levels from June of last year: the state by minus nine percent and the county by minus 25 percent.

According to the Illinois Association of Realtors, more sellers entered the Illinois housing market in June. Buyers took advantage of low interest rates and affordable prices with double-digit sales. The change marked the fifth consecutive month-to-month increase in home sales statewide as well as the fourth monthly increase in median home sale price for the state as a whole.

Statewide total home sales — which include single-family homes and condominiums — were up 20.8 percent in June 2009 to 10,909 homes sold compared to 9,029 homes sold in May 2009. Compared to a year ago, home sales were down 9.3 percent from June 2008 sales of 12,024.

For La Salle County, total home sales were up 21 percent in June 2009 to 92 homes sold compared with 76 homes sold in May 2009. Compared to a year ago, county home sales were down 25.2 percent from 2008 sales of 123.

The Illinois median price in June 2009 was $167,900, up 6.6 percent from $157,500 in May 2009; it was down 16 percent from $199,849 a year ago in June 2008. The median is a typical market price where half the homes sold for more, half sold for less.

"Buyers are beginning to realize that this combination of favorable home prices, historic low mortgage interest rates and the first-time homebuyer tax credit incentive may not be around next year," said Pat Callan, IAR president.

Callan noted Illinois real estate agents continue to urge first-time buyers to be under contract by the end of September to ensure a closing before the Tuesday, Dec. 1, tax credit deadline.

"More sellers are returning to the market as evidenced by the increase in listings," said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois.

"While sales have exhibited a rebound, there has been no rebound in prices — a phenomenon observed nationally and not just confined to Illinois and Chicago. The concern here centers on the relationship between prices and foreclosures; there is increasing evidence that the most important factor in foreclosures is the degree to which the homeowner has negative equity in the home. ...

"The economy continues to be a drag on the housing market. In June the state"s unemployment rate was 10.3 percent."

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the north central region was 5.47 percent in June 2009, up 0.58 from the 4.89 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in June it averaged 6.38 percent.

Illinois market statistical data is available online at www.illinoisrealtor.org, click on Market Stats.