OUTLOOK ON HOUSING:A LOCAL PERSPECTIVE

Jim Haisler, AHWD, CIPS, e-PRO, RCE

Chief Executive Officer

Heartland REALTOR® Organization

2013: WHERE HAVE WE BEEN:

ILLINOIS SAW STRONG HOUSING SALES AND PRICING GAINS ACROSS THE BOARD IN AUGUST, WITH MANY AREAS REPORTING CONTINUED YEAR-OVER-YEAR INCREASES.

TO PUT THIS IN PERSPECTIVE, IT’S IMPORTANT TO REMEMBER THAT AUGUST 2012 SAW A SIZABLE SALES INCREASE, BUT THE MEDIAN PRICE WAS STILL DOWN 1%. IN FACT, AUGUST 2012 WAS THE TURNING POINT FOR HOUSING PRICES.

THE DATA SHOWS THAT EVERY MONTH SINCE AUGUST 2012 MEDIAN PRICES HAVE INCREASED FROM A MEAGER 1.5% IN SEPTEMBER 2012 TO THE MUCH MORE ROBUST 13.6% GAIN IN AUGUST 2013.

INFORMATION PROVIDED BY THE ILLINOIS ASSOCIATION OF REALTORS®

AMONG THE HIGHLIGHTS FOR AUGUST 2013:

THE CHICAGO AREA SAW VERY STRONG MEDIAN PRICE GROWTH. THE NINE-COUNTY PMSA RECORDED A 16.2% MEDIAN INCREASE TO $197,500; AND THE CITY OF CHICAGO SAW A WHOPPING 22.5% INCREASE TO $245,000.

TIME ON MARKET DATA SHOW THERE’S TREMENDOUS HEAT STILL IN THE HOUSING MARKET. HOMES ARE SELLING FASTER — AN AVERAGE OF 72 DAYS ON MARKET STATEWIDE IN AUGUST AND UNDER TWO MONTHS IN THE CHICAGOLAND AREA.

INVENTORIES OF AVAILABLE HOMES FOR SALE IN THE CHICAGO MARKET ARE DOWN BY NEARLY A THIRD. THE STATE AS A WHOLE SHOWS AN ANNUAL INVENTORY DECREASE OF 22.1%.

INFORMATION PROVIDED BY THE ILLINOIS ASSOCIATION OF REALTORS®

BUT WHAT’S HAPPENINGLOCALLY?

Information from RealtyTrac.com 10/15/2013

McHenry County, IL

Information from RealtyTrac.com 10/15/2013

McHenry County, IL

Information from RealtyTrac.com 10/15/2013

McHenry County, IL

Information from RealtyTrac.com 10/15/2013

McHenry County, IL

FORECLOSURE STATS:

In September, the number of properties that received a foreclosure filing in McHenry County was 20% higher than the previous month and 46% lower than the same time last year.

Home sales for August 2013 were down 12% compared with the previous month, and up 22% compared with a year ago.

The median sales price of a non-distressed home was $178,000. The median sales price of a foreclosure home was $119,000, or 33% lower than non-distressed home sales.

FORECLOSURE STATS:

Top 5 cities: Hebron 1 in every 201 homes Spring Grove 1 in every 248 homes Union 1 in every 252 homes Harvard 1 in every 284 homes Wonder Lake 1 in every 290 homes

OVERVIEW:Interest rates remain low 4.5% for a 30 yr fixed rate loan 3.5% for a 15 yr fixed rate loan variable rate loans have done extremely well

QRM – 20% down requirement – GONE!

McHenry County Stats:307,000 people9% unemployment5.82% of our homes are vacantCrime rate ~ BSchools ~ B

Consumer Confidence is up and people are buying!

OUTLOOK ON HOUSING:A LOCAL PERSPECTIVE

Jim Haisler, AHWD, CIPS, e-PRO, RCE

Chief Executive Officer

Heartland REALTOR® Organization