Transcript MORe Economic Facts

MORE Economic Facts
What’s Being Said About The
Economy and Real Estate Today
NAR Midyear Forecast
Existing home sales are
forecast to increase
to nearly 5.0 million this year.
The median existing home
price should increase
about 8% this year and
5% in 2014.
Mortgage interest rates
are expected to
rise to about 4.0% by
the fourth quarter of
this year.
National Association of REALTORS®
May Existing Home Sales Up
Total existing
home sales
increased
4.2% in May
from April and up
12.9% from a
year ago
The median time on
market was 41
days in May,
All cash
sales were
33% of
transactions
NAR Existing Home Sales May Release
down from 46 days
in April
National median
price: $208,000
National Association of REALTORS®
April
Pending
Sales
Up .3%
from
March to
April
Up
10.3%
from
April 2012
“Because of inventory shortages, higher home sales will
push up home values to the highest level in five years,”
Lawrence Yun, NAR chief economist.
NAR April Pending Home Sales Report
Illinois Association of REALTORS®
Chicagoland PMSA
Home sales
in May were
up 29.3%
Median price stood at
$184,000, up 8.2% from
May 2012
“All the indicators point to a strong 3-month period of growth,
even in median prices,” said Dr. Geoffrey Hewings, Director of
the Regional Economics Applications Laboratory of the
University of IL.
Illinois Days on Market
Source: Illinois Association of REALTORS
Illinois Home Sale Prices Rise 9th Month in May
Nine straight months
of year-over-year
median price gains
statewide
It takes 83 days on
average to sell a home
in Illinois.
Source: Illinois Association of REALTORS
Inventory dropped
29% from May 2012
U of I REAL Forecast
The year-over-year median
price forecast for Chicago
PMSA is expected
to
trend up 8.2% in June,
10.1% in July and 10.1% in
August.
The three-month
average sales
forecasts point
to
increases
between 23.1% to
31.2% from 1 year
ago.
Mainstreet Organization of REALTORS®

Sales of single-family, detached homes in
suburban Chicago increased 29.1% in
May (based on year over year stats)
according to MORe.

Median sales price for detached homes
increased 8.3% from May a year ago
National Association of Home Builders
“The outlook for housing
continues to brighten as builders
Nationwide housing starts
rose 6.8% in May.
respond to increased
demand for new homes
and rental apartments,” said
National Association of Home
Builders (NAHB) Chairman Rick
Judson.
Fannie Mae
Housing is expected to act
The second half of 2013 will be a
little stronger than the first
half, despite the slowdown during
the past couple of months,” said
Fannie Mae Chief Economist Doug
Duncan.
May Fannie Mae news release
as a tailwind for the
economy throughout
the year and into 2014, even
though there may be shortterm ups and downs in
overall economic activity
Fannie Mae May 2013
National Housing Survey
76% say now is
a good
time to
buy
Fannie Mae Housing Survey
People who say now is a good time to
sell climbed
4 percentage
points in May to 40% compared
to 30% in April.
Freddie Mac June Housing Outlook
“Rates would have to increase
Interest rates
should hover
around 4%
during the
second half
of 2013.
considerably before the
reduction in demand for home
purchases should be substantial.
Nothing in recent trends
suggests that we need to fear a
major slowdown,” Frank Nothaft,
chief economist.
June Freddie Mac June Housing Outlook
State of Illinois Economic Forecast
Longer term, Illinois has a
lot of what businesses
need to thrive—talent, access
to customers and capital,
transportation—but painful
fiscal reforms are needed
The state is one
of just
a handful nationally in
danger of falling back into
recession.
before it can fully capitalize on
these strengths.
Moody’s Analytics/Economic & Consumer Credit Analytics.
Consumer Confidence Survey
Conference Board Consumer
Confidence Index
69.0 in
April
76.2 in
May
Those saying business
conditions are “good”
17.5%
in April
18.8%
in May
Those expecting business conditions to
improve over the next 6 months
17.2%
in April
19.2%
in May
Gallup Poll
American’s dream of
owning a home is alive and
well, evidenced by the fact that
most Americans own a home
and plan to continue to do so (56%)
or don’t own a home but plan on
buying one in the next 10 years
(25%).