MORE Economic Facts

MORE Economic FactsWhat’s Being Said About The

Economy and Real Estate Today

NAR Midyear ForecastExisting 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

NAR Existing Home Sales May Release

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, down from 46 days

in AprilAll cash

sales were 33% of

transactions

National median price: $208,000

National Association of REALTORS®

“Because of inventory shortages, higher home sales will push up home values to the highest level in five years,” Lawrence Yun, NAR chief economist.

April Pending

Sales

Up .3% from March to

April

Up 10.3% from

April 2012

NAR April Pending Home Sales Report

Illinois Association of REALTORS®

“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.

Home sales in May were

up 29.3%

Chicagoland PMSA

Median price stood at $184,000, up 8.2% from

May 2012

Source: Illinois Association of REALTORS

Illinois Days on Market

Illinois Home Sale Prices Rise 9th Month in May

Source: Illinois Association of REALTORS

Nine straight months of year-over-year median price gains

statewide

It takes 83 days on average to sell a home

in Illinois.

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 respond to increased demand for new homes and rental apartments,” said National Association of Home

Builders (NAHB) Chairman Rick Judson.

Nationwide housing starts rose 6.8% in May.

Fannie Mae

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.

Housing is expected to act as a tailwind for the economy

throughout the year and into 2014, even though there may be short-term ups and

downs in overall economic activity

May Fannie Mae news release

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 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

Interest rates should hover

around 4% during the

second half of 2013.

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 before it can fully capitalize on

these strengths.

Moody’s Analytics/Economic & Consumer Credit Analytics.

The state is one of just a handful nationally in danger of falling back into

recession.

Consumer Confidence Survey

Those expecting business conditions to improve over the next 6 months

Conference Board Consumer Confidence Index

69.0 in April 76.2

in MayThose saying business conditions are “good”

17.5% in April

18.8% in May

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%).