the top notch realty team at keller williams success realty presents the illinois housing market,...

The Top Notch Realty Team

at Keller Williams Success Realty presents the Illinois Housing Market,

courtesy of the

Illinois Association of Realtors

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Housing Is a Hot Topic

• 2007 was a year of challenge!

• Negative headlines

• 2008 is a year of OPPORTUNITY for serious buyers.

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REALTORS® Are Market Experts

• 60,000 Illinois REALTORS®

• REALTORS® track median home sale prices using Multiple Listing Data

• REALTORS® advocate for private property rights

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Positives in the Market

• 2007 – 5th highest year on record for home sales in the United States

• Still historically high level of sales

• Off from unsustainable peak in 2005

(National Association of REALTORS®)

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Positives in the Market

• 1 out of 16 American households bought a home in 2007

• Speculators are gone

• Mortgage interest rates to average 6.4% in 2008


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Real Estate = Best Investment!

Buying a home is the single best investment people can make!

• Shelter

• Security

• Wealth accumulation

• A good long-term investment

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Real Estate = Best Investment!

• On average the value of a home nearly doubles every 10 years.

• The average renter’s net worth is $4,800. The average homeowner’s is $171,700.


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Real Estate = Wealth Builder

• A homeowner whose home appreciates at a typical annual rate of 5% with cash down payment of 10% generally will receive a 94% return on that cash after owning the home only three years.

(Harvard Joint Center on Housing)

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Housing - Impact on Illinois Economy

$5.5 billion or 1% of Illinois Gross State Product (GSP) comes from:

Residential Property Transactions and the related expenditures from buyers & sellers

(RCF Study 2007)

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$28,413 – direct expenditures related to a housing transaction

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$11.9 Billion Total effect of Illinois output(purchases and sales between industries

throughout the process)

(RCF Study 2007)

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Illinois Housing Market

• Median price holding in a steady range

• No steep declines like the coasts

• Affordable prices $203,000 Illinois median $254,500 Chicago median

(IAR Market Stats, YTD Jan-Nov 2007)

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Illinois Housing Market

• Sales are lower comparing 2007 to 2006

• Illinois -16.3 %• Chicagoland -19.6%

(IAR Market Stats, YTD Jan-Nov 2007)

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Local Housing Market

[add 1 or 2 slides on:] • local market median

price and sales data • positive factors for

local market in 2008 • RCF study results for

local MSA

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Housing Follows Jobs

• “The slower growth rate for jobs in Illinois, especially outside of Chicago, continues to be a drag on the state’s recovery from the 2000 recession.”

• It will be well into 2009 before the state recovers its prior employment peak of November 2000.

(University of Illinois Regional Economics Applications Laboratory 2008 Forecast)

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Homeownership Rates

• 70.4% Illinois

• 71.9% Midwest

• 68.2% United States

(U.S. Census, 3Q07)

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Mortgage Interest Rates

• 6.40% - U.S. forecast for 2008

• 16.63% – 1981 (High)

• 5.90% – 2003 (Low)

(Freddie Mac, NAR)

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A First-Time Buyer’s Market

• If you’re a first-time homebuyer, this is one of the best markets in years!

• Housing stock is plentiful and there are good mortgage rates available for those with good credit histories seeking conventional mortgages.

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Underlying Factors Support Housing

• Strong household formation fueled by population growth.

• Immigrant homebuyers.

• Gen Y “Echo Boom” (2nd largest generation in U.S. history)—just entering home-buying years.

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Underlying Factors Support Housing

• The Baby Boomers remain in peak earning years and are investing in real estate as they near retirement.

• The economy is stable.

• Low mortgage interest rates.

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Changing Market – Local Is Key

• “Local market conditions are different from what’s happening nationally, so it’s best to work with a local real estate professional to determine timing, pricing and the best value.”

• “Homes that are priced to reflect the realities of today’s market will sell.”

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• Oil prices• Consumer confidence• Presidential election• Job gains expected

for late 2008 & 2009• Subprime effect

lingers

2008 U of I Housing Forecast


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2008 U of I Housing Forecast

• Median price to modestly decline in 2008 (-0.34 to -1.58%)

• Chicago market expected to be more buoyant than the state (up 2.24% to 5.16%)


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Top Notch Realty Team website• Tips for buying a home• Tips for selling a home• Illinois market facts• Financing options• Free Home Valuation• Market Snapshot• Buyer & Seller

resources, and coming soon MAP IDX technology for buyers.

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Mortgage Lending Trends

• Credit tightening has occurred

• National REALTORS® October forecast -mortgage markets are improving

• New and existing homeownership programs help

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First-Time Buyer Programs

• NEW! Assets Illinois Homeownership Project, www.dhs.state.il.us/assets

• 850 homeowners across the state

• Required financial and homeownership education

• $2,000 match toward first home

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First-Time Buyer Programs

Illinois Housing Development Authority, www.ihda.org

• I-Loan 30 - below market, 30-year fixed rate mortgages

• NEW! I-Loan 40 - below-market, 40-year fixed rate mortgages

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Subprime Refinance Program

NEW! FHA Secure www.fha.gov

• Allows people to avoid foreclosure and refinance with an FHA-insured loan

• Some eligibility requirements

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More Buyer Programs

• Partnership for HomeOwnership, www.pfho.org

• Our Own Home, www.ourownhome.net

• FHA Loans, www.fha.gov

• USDA Rural Development, http://www.rurdev.usda.gov/il/

• VA Loans, http://www.homeloans.va.gov/

• Local, state, federal programs

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Yes, the Market has Changed

• You need the expertise of a REALTOR®

• It’s a very good time to buy and invest!

• Low interest rates, high inventory!

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How a REALTOR® Can Help

• Comparable market analysis

• Set the right price

• Negotiate the best deal

• Mortgage & finance options

• Market the home

• Prepare the home for sale

• Navigate the paperwork

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Don’t Go It Alone!

• FACT: Sellers who use a real estate professional make an average 16% more on the sale of their homes than sellers who go it alone.

• It’s no surprise that only 12% of sellers chose “For Sale by Owner” in 2006.


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Don’t Go It Alone!• Buying or selling a

home is one of the most important decisions – and largest financial transactions – anyone can make!

• Choose a REALTOR® from the Top Notch Realty Team at Keller Williams Success Realty!

the top notch realty team at keller williams success realty presents the illinois housing market,...

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