The Top Notch Realty Team

1
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
• (National Association of REALTORS)

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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 renters net worth is 4,800. The
  average homeowners is 171,700.
• (National Association of REALTORS)

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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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Housing - Impact on Illinois Economy

• 28,413 direct expenditures related to a
  housing transaction

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Housing - Impact on Illinois Economy

• 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 states 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 Buyers Market

• If youre 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
  whats happening nationally, so its 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 todays market will sell.

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2008 U of I Housing Forecast

• Oil prices
• Consumer confidence
• Presidential election
• Job gains expected for late 2008 2009
• Subprime effect lingers

(University of Illinois Regional Economics
Applications Laboratory 2008 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)

(University of Illinois Regional Economics
Applications Laboratory 2008 Forecast)
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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
• Its 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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Dont 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.
• Its no surprise that only 12 of sellers chose
  For Sale by Owner in 2006.
• (National Association of REALTORS)

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Dont 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!