February 11, 2009
FOR IMMEDIATE RELEASE

Contact:
Mary Schaefer/Ann Londrigan
217/529-2600

4Q08 Illinois Median Home Price and Total Sales Decline
Conditions Good for Buyer’s Market in Early 2009

SPRINGFIELD, Ill. – The final quarter of 2008 recorded a statewide decline in median home prices and sales in Illinois amid a backdrop of nationwide economic uncertainty, while REALTORS® promote stimulus plans that boost consumer confidence and address foreclosures. According to the Illinois Association of REALTORS® (IAR) fourth quarter 2008 report, Illinois home sales (which include single-family homes and condominiums) totaled 21,382 in the fourth quarter, down 22.2 percent from 27,483 home sales in the same period a year ago. For the year 2008, total sales were down 23.3 percent with 107,680 homes sold compared to 140,378 sales in 2007.

In the fourth quarter, the statewide median home sales price was $165,000, down 13.2 percent from $190,000 in the fourth quarter of 2007. The median is a typical market price where half the homes sold for more, half sold for less. The year-end statewide median home price was $184,500, down 7.8 percent from $200,000 in 2007.

“The 2008 Illinois housing market was not immune to the effects of a poor economy. Looking ahead buyers will continue to see opportunities in the market this year with improved affordability conditions, large inventories, low mortgage interest rates and motivated sellers,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®.

“Illinois REALTORS® along with over one million REALTORS® nationwide are aggressively promoting stimulus measures in Congress that will help people facing foreclosure and spark the housing market,” said Callan, noting key points include extending the first-time homebuyer tax credit through 2009 and eliminating the repayment feature, support for a mortgage interest rate buy-down, and increasing FHA, Fannie Mae and Freddie Mac loan limits.

The 4Q08 interest rate for 30-year, fixed-rate mortgages averaged 5.86 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 6.44 percent in the third quarter and also down from 6.27 percent a year ago in 4Q07.

“The final quarter of 2008 was not a good one for any part of the country; in the last two months of the year, the nation lost over one million jobs," said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “In the same period, Illinois lost over 70,000 jobs; the minor consolation in these losses might be the fact that the rate of loss in Illinois was slightly below that of the U.S. for all of 2008. However, the rates of declines in the last two months in Illinois have been equal to or greater than the U.S.”

Adds Hewings: “Since 1945, Illinois has never taken more than eight years to recover a previous peak employment level; as of January 2009, Illinois was 174,000 below the prior peak of November 2000 and entering the ninth year of recovery that will now be further delayed as the recession dampens any hope of a rapid upturn in the fortunes of the U.S.”

In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) were down 22.0 percent in the fourth quarter of 2008 to 13,540 compared to 17,366 home sales in the fourth quarter of 2007. For the year, total home sales in the Chicagoland PMSA reached 68,676 in 2008, down 25.9 percent from 92,657 sales in 2007.

The region’s fourth quarter 2008 median price was $215,000, down 13.3 percent from $248,000 in the fourth quarter of 2007. The Chicagoland PMSA median home sale price for 2008 was $240,000, down 5.5 percent from $254,000 in 2007, the highest median price on record for the region.

In Illinois, 28 of 97 counties reporting recorded an increase in median home prices for the fourth quarter include Coles, up 3.1 percent to $75,750; Jefferson, up 18.8 percent to $77,500; Kankakee, up 3.9 percent to $128,000; Knox, up 0.9 percent to $58,000; Marion, up 0.8 percent to $60,000; McLean, up 5.4 percent to $158,000; Menard, up 7.3 percent to $117,500; and Whiteside, up 9.6 percent to $80,000.

In the city of Chicago, total home sales (single-family and condominiums) in the fourth quarter were down 28.7 percent to 3,807 sales compared to sales of 5,338 in the fourth quarter of 2007. The city of Chicago median price in the fourth quarter was $242,900 down 15.8 percent from $288,375 in the same period for 2007.

For the year, home sales in the city reached 20,589 in 2008, down 25.1 percent from 27,503 sales in 2007. The 2008 median price was $290,000, down 0.5 percent from $291,500.

David Hanna, president of the Chicago Association of REALTORS® said: “As REALTORS®, we are seeing firsthand the perils of today's economy. We wholeheartedly support President Obama in his efforts to get Congress to move quickly to enact a comprehensive housing recovery plan as part of the 2009 Stimulus Bill. It is critical to ensure they act without delay to protect families, homes and jobs.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

The Illinois Association of REALTORS® is a voluntary trade association whose 57,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

Detailed fourth quarter 2008 Illinois home sales data can be accessed at the IAR Web site, www.illinoisrealtor.org, on Market Stats.

-30-