• MLS stats - MLS statistics for the areas in the Shore and Barrington - listings and sales
• IAR January Release
• IAR January Talking Points
• IAR 4th QTR Release
• IAR Talking Points
• 4th Quarter and Year-End County-by-County Charts
• Stats from the daily hotsheets that we have accumulated
• Statistics from 1980+ (Single family detached) View the average price of homes in the Shore and Barrington
• Statistical facts of our territory: Aggregated Geographies census information for the Shore and Barrington
• Compare Housing Cycles
• Make up of Membership - NSBAR membership by office size
• Research on buyers in the Board jurisdiction 2002 survey of homebuyers in the Shore and Barrington
• Research on buyers in the Board jurisdiction 2005 survey of homebuyers in the Shore and Barrington
  • Fact Sheet on Homebuyers in the Shore and Barrington for the 2005 survey
• Demographic Snapshot of our territory  census information for the Shore and Barrington
• NAR Market-by-Market Home Price Analysis Reports http://www.realtor.org/Research.nsf/files/06ILChicago.pdf/$FILE/06ILChicago.pdf
• After years of reporting on the housing boom, the media is now focusing on gloom and doom. While the market is in transition, a positive spin is possible. The IAR housing stats program ultimately positions the REALTOR organization (locals and state) as a leading resource on the Illinois housing market and we release our data in tandem with the national figures to help tell our story on the big housing news day. We've made a commitment to regularly publishing housing statistics to the news media. We will do our best effort to present our information and statistics with the most positive spin possible. That has always been our ultimate goal.
  
  Great job to Dan, Peggy, Al and all of you for trying to tell your positive market story. I would encourage you to continue to read and stay updated on recent trends for the state and national economic market. Here is a link to an excellent NAR publication “Real Estate Insights” which you can subscribe to from NAR and it will be e-mailed to you monthly: http://www.realtor.org/reioutlook.nsf/.

  Below are some key phrases and useful language used by IAR and NAR’s chief economist David Lereah. These might be helpful to you in answering calls from reporters or members or consumers.
  
  Talking Points for a Market in Transition
  Up and Down Market

  “Last year at this time we were experiencing record home sales and a tight supply. Now REALTORS are reporting more homes on the market, which means improved opportunities for buyers, especially with the recent dip in interest rates,” said Robert Zoretich, president of the Illinois Association of REALTORS. (IAR release 9-25-06)
  We continue to remain positive about Illinois’ housing market given the backdrop of attractive mortgage interest rates and continued demand for housing from baby boomers and immigrant populations.
  The Illinois housing market should experience a soft landing as we slow down from last year’s record-breaking sales pace. The best thing that any seller can do in a softening market is to work with a professional to correctly price and market the property.
  Overall the housing market is stabilizing. On one hand is the slight rise in mortgage interest rates that has slowed sales a bit and on the other is a healthy jobs picture in Illinois. This means many potential home buyers could enter the market in the foreseeable future, especially in moderately priced areas where affordability conditions remain favorable.
  Current market conditions are favorable for buyers with the rise in housing supply and some pressure taken off home prices. Buyers have more choices and sellers are still getting good returns. These are the kind of normal market conditions we are returning to after years of record sales.
  We are entering the second phase of the transition period from the housing boom, in which sellers are becoming more realistic about their expectations. Sales are stabilizing and annual home price appreciation is returning to historic norms.
  “After a stronger-than-expected drop in July, the fairly even sales numbers in August tell us the market is at a more sustainable pace,” Lereah said. “It keeps us on track to see the third highest sales year on record, but we do expect an adjustment in home prices to last several months as we work through a build up in the inventory of homes on the market.” (NAR News Release, 9-25)
  “Though the housing numbers appear to be bad, the rate of decline may be slowing. "The fact is that the decline is showing signs of losing momentum, not gaining momentum," says Bob Brusca of FAO Economics in New York. For example, the decline in the August sales volume was less than economists had been expecting, he says. "We can't say it's a turning point, but we can say it's an inflection point." "Even though prices have fallen, people still have a lot of wealth and equity built up," Mr. Brusca says. "We would need to see a lot more decline before it materially impacts consumer finances." (Christian Science Monitor)
  ''We're in for a ride right now,'' NAR economist David Lereah said after its last release. ''This is the first of many price corrections for the remaining months of the year -- for at least the next three or four months.'' (New York Times)
  
  Underlying Economic Forces
  
  Underlying economic forces affecting homeownership are still strong in Illinois:

  • Strong household formation fueled by population growth, in specific immigration homebuyers in Illinois.
  • Growing pool of homebuyers
  • The Baby Boomers are nearing retirement and buying second homes. They are in their peak earning years and they are investing in real estate.
  • The economy remains strong
  • The jobs picture is improving
    
  Mortgage Rates

“Mortgage rates remain favorable in Illinois and remain under 7 percent. Record highs were reached in the early 1980s to 16%. We are obviously nowhere near that scenario.”
“The 30-year fixed-rate mortgage is running nearly a percentage point higher than a year ago but is likely to rise very slowly in the months ahead, according to NAR economists, reaching 6.9 percent in the fourth quarter.”

Recent Annual Average Rates – North Central Region (which includes Illinois)
2005 – 5.96%
2004 – 5.91%
2003 – 5.90%
2002 – 6.62%
2001 – 7.01%
2000 – 8.08%
1995-1999 – averaged 7.8%
1981 – 16.63% all-time high for North Central Region

Median Prices Increases and Decreases

Buying a home should be approached as a long-term investment providing both equity accumulation and tax benefits over time. The vast majority of families live in the homes they buy for a long time and don’t flip them for a profit after a few months.
While we expect a shift in momentum in the second half of the year, the housing market is still strong and will not behave like the stock market when the market turns and investors scramble to get out. In housing, we’ll see houses staying on market a bit longer, inventories will grow and that will ease some of the price increases we’ve been seeing.
Compared to some of the hottest markets along the coasts – where price appreciation has reached over 100% -- the Midwest has a strong but healthy housing market.

Long-Term Outlook

Everything has limits. You cannot sustain a record-setting sales pace forever.
By early 2007, we could actually be in a healthier market environment compared with 2005. All it takes is some time to correct and catch our breath in 2006.
We can expect a historically strong housing market moving forward, earmarked by generally balanced conditions and fairly stable levels of home sales with some month-to-month fluctuations.
Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record.
Pending home sales are up, indicating a stabilization is taking place in the housing market. David Lereah, NAR’s chief economist, said the rise in the index is a hopeful sign. “Our sense is that home sales may have reached a low in August – the Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible,” he said. “With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms.” (NAR release 10-2-06)

Housing as an Investment

There’s more to a house than equity or a financial investment. With a home you get a retreat, a haven from the work day and the world, something you call your own, a refuge.
In addition to tangible financial benefits, homeownership is said to bring substantial social benefits for families, communities, and the country as a whole.
There are tax benefits and other investment aspects of home ownership that go beyond simply looking at home values.