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IAR Communications prepared these talking points for use when talking about the 2008
Housing Market.
General Factors that Will Help the Illinois Housing Market in 2008
• The Illinois Association of REALTORS® expects 2008 will continue to be a good year
to buy a house or condo, particularly for first-time and move-up buyers with good
credit. Mortgage interest rates remain at historically low levels. There is a large
inventory of homes to choose from. And buyers with good credit have access to many
conventional financing options.
• First-time buyer programs have expanded in Illinois include Assets Illinois which
provides matching grants for downpayments for qualified applicants. The HomePower
Mortgage Assistance Program, an initiative of the Partnership for HomeOwnership has
expanded to all of Cook County. The Illinois Housing Development Authority offers
the I-Loan mortgage assistance program with 30-year and 40-year options. Find these
and more programs at www.yourillinoishome.com.
• Real estate continues to be a strong investment over the long term. For the typical
homeowner who owns their own home or condo for six to 10 years, the increase
translates into long-term gains and significant wealth accumulation.
• In Illinois we’ve been averaging a 70 percent homeownership rate and sheer demand is
a factor that bodes well for a stabilizing housing marketing in 2008.
• Gen X and Y with money form a powerful demand group. Baby boomers form the
strongest second-home market.
• Illinois has a large immigrant population so demographics stand in our favor for
continued demand for housing.
• 2007 was a year of challenge; 2008 will be the year of opportunity for serious buyers.
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IAR Economic Talking Points
• REALTORS® from around the state find positives to report in their local markets for
2008. All real estate is local so it’s best to find out about the jobs picture, business
growth and population demands from the local perspective.
• People have been sitting on the sidelines and so there is a lot of selection on the market
and it will continue to be a good market for buyers in 2008.
• “Home prices in the vast midsection of America, from the Appalachians to the Rockies,
are affordable and, perhaps, even undervalued. The housing market correction is clearly
focused on transaction volume and not in home prices. “All real estate is local—
conditions vary from one city to the next.” (NAR forecast, 11/14/07)
• The FHA market share for home purchases is expected to further accelerate in 2008
helping first-time buyers enter the market with a safer and lower interest rate mortgage
product. (NAR forecast, 11/14/07)
• “Some may look back at this time and see an opportunity missed with interest rates so
low and a nice selection of homes on the market.”
• “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 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by
the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest
rates. (NAR forecast, 12/10/07) |