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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. - PowerPoint PPT PresentationTRANSCRIPT
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%).