Illinois Housing Outlook
Posted by Judy Orr on Tuesday, December 27th, 2005 at 10:08pm.If you ask someone what their opinion is on real estate in 2006 with interest rates inching up, you'll get many different answers. Here are some of them:
- The Illinois Association of REALTORS® (IAR) interviewed several people. The first is Diane Swonk of Mesirow Financial in Chicago. Diane feels the market will be slower but not a collapse. I agree with Diane that although Illinois certainly felt the real estate boom of the past 5 years, we were not on the highest end of that frenzy. So our softer market won't be as drastic as other markets.
- IAR also interviewed Lawrence Yun of the National Association of REALTORS® (NAR). I will sum up his interview. Mr. Yun feels that rising interest rates are certainly not going to be good, yet at a prediction of 6.7 percent they are still historically favorable low rates. Balance that with a good job market, he feels that the 4 million jobs that were added over the past 2 years will bring more homeowners into the market.
- Another interviewee, John Tuccillo of JTA, Inc., feels that interest rates are only inching up. He's not even sure that 2006 will slow sales, but sales will be lower (he predicts 3-5 percent) with a moderating of prices.
- David Lereah, Chief Economist of NAR, feels that market conditions are still favorable for the housing market. Read the entire article. (Will open a new window).
- According to the Better Investing's Voice of the American Shareholder (VOAS) poll of 1,000 participants, real estate is still considered one of the top prime investments for 2006. Read about it here.
- Inman News has a 2 part article featuring opinions of different real estate experts from around the country:
Part 1
Part 2
There is a 3rd part but it is for members only.
- NAR provides 2 published reports for download:
2005 NAR Profile of Real Estate Markets
Foreign Investment in U.S. Real Estate
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