Housing market on local level is strong

In its recent article on national trends in the housing industry (Oct. 27, Associated Press, "Worse before it improves … All things housing predicted to fall: prices, sales, construction before stabilizing"), the Daily Herald failed to include local data that paint a more accurate picture of what is happening in Illinois and Chicagoland and demonstrate some of the ways that the local housing market is bucking those trends.

While national average sales volume and price statistics may identify some trends, the fact is that all real estate is local and thus conditions vary greatly from one city to the next. Here in Illinois, home prices are holding steady and in Chicagoland they continue to rise. Despite a drop in the median housing price occurring nationwide, Illinois and the Chicago area reported median price gains last month. For September, the statewide median price stood at $200,000, up 0.8 percent from September 2006. In Chicagoland, median price stood at $257,500, up 5.1 percent from last year.

The University of Illinois Regional Economics Applications Laboratory forecast calls for modest increases in median home prices for the next three months in Chicago.

The reality is most Illinois homeowners are experiencing very healthy long-term gains in the value of their homes, and real estate remains the single best investment over the long term, providing wealth accumulation especially for those who keep the home for a typical holding period of six to 10 years.

The bottom line is that now is a good time to buy a house in Illinois. Buyers have an advantage with the large inventory to choose from and room to negotiate with motivated sellers. Mortgage interest rates remain at historically low levels and buyers with good credit have access to many financing options.

Buyers and sellers should ask a local Realtor and get the facts on the current housing market in their area to make the best decisions.

Kay Wirth, president

Illinois Association

of Realtors

Crystal Lake