The May 2008 Housing Price Forecast prepared by the University of Illinois for the Illinois Association of REALTORS projects prices will start to recover even though sales will be down from last year. On a positive note, our price decline as been less than 10%, unlike other areas of the country. Some key points presented are:
- For the next three months, the sales forecasts look to be down (compared to the same months, May through July, 2007) between 18 and 27% for the state and 20 to 30% for Chicago.
- Median prices are expected to recover in the state in May and June but compared to the same months in 2007, the prices will be down around 6%.
- Compared to many other metropolitan areas, the Chicago region is still experiencing price declines that are below 10% in contrast to other areas such as Las Vegas, where price declines have exceeded 20%.
The entire report is available to Illinois REALTORS from the Illinois Association of REALTORS .
The following was recently posted by Kate Sax of MORe on steps to take to stimulate your business in the near term. While Realtors always say the best time to buy real estate is today, the current market makes this recommendation more valid now than ever.
Here are Kate’s points:
Surviving and thriving in the real estate market these days means following a whole new set of rules. Here are five imperatives, published in the June 2008 issue of REALTOR® magazine, for those who want to master the home-buying game. Explaining these items to your customers could help you win friends and sales.
1. Gaming the market doesn’t work. There’s a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love.
2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody’s Economy.com predicts rates will hit 7 percent in mid 2009.
3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end.
4. Good schools count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com.
5. Honesty is the best policy. Be upfront about your commission and consider letting the buyer keep any incentives offered by the sellers.