Illinois First Quarter Home Sales Hit by Credit, Economic Factors

Statewide First Quarter Median Price at $187,500

SPRINGFIELD, Ill., May 9 /PRNewswire-USNewswire/ -- Illinois median home
prices held their own in the first quarter while sales were constrained by the
ongoing credit crunch and a softening economy. According to the Illinois
Association of REALTORS(R) (IAR) first quarter report, total home sales (which
include single-family homes and condominiums) totaled 21,576, down 27.0
percent from 29,553 home sales in the first quarter of 2007. The first quarter
median home sale price was $187,500, down 4.3 percent from $196,000 a year
earlier. The median is a typical market price where half the homes sold for
more, half sold for less. The average sale price was $252,899, up 0.9 percent
from $250,576 for the same period a year ago.

"Extreme winter weather on top of shaky consumer confidence due to rising gas
and food prices and the uncertain economy affected overall home sales activity
statewide. REALTORS(R) do anticipate a boost in activity as we enter the
spring housing market from pent-up demand held over for so many months," said
REALTOR(R) Kay Wirth, president of the Illinois Association of REALTORS(R).
"The fundamental elements of a solid housing market are in place with low
interest rates and ample inventory of homes. REALTORS(R) around the state
report more interest from buyers at showings who waited out last fall and are
ready to buy for long-term value."

In the city of Chicago the median price of a home increased 5.4 percent in the
first quarter to $295,000 compared to $280,000 in the first quarter of 2007.
Total home sales (single-family and condominiums) reached 4,618 sales in the
first quarter, off 19.9 percent from 5,768 homes sold in the first quarter of
2007.

"In an economy where housing markets are fluctuating nationally, the value of
homes in the city of Chicago continues to steadily increase, underscoring our
message that now's the ideal time to buy," said David Hanna, president-elect
of the Chicago Association of REALTORS(R). "We continue to see steady growth
in the median price of home sales in Chicago and particularly strong increases
in the median price of condominiums, up 8.6 percent this quarter."

The first-quarter commitment rate for a 30-year, fixed-rate mortgage for the
North Central Region averaged 5.91 percent, according to the Federal Home Loan
Mortgage Corporation. It was down from 6.27 percent in the fourth quarter of
2007 and 6.24 percent in the first quarter of 2007.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), total home
sales (including single-family and condominiums) were down 29.9 percent in the
first quarter to 13,989, compared to 19,942 home sales in the first quarter of
2007. The median home sale price in the Chicagoland PMSA was off a slight 0.6
percent to $243,500 in the first quarter of 2008 compared to $244,900 in the
same period one year ago.

A sample of counties around the state that saw median home sale price
increases in the first quarter include Cook County, up 1.4 percent to
$258,500; Bureau, up 11.3 percent to $93,500; Champaign, up 2.3 percent to
$144,500; Jackson, up 8.3 percent to $91,000; Jo Davies, up 5.4 percent to
$170,000; McLean, up 5.2 percent to $152,750; Peoria, up 12.3 percent to
$112,250; Sangamon, up 9.3 percent to $114,750; and Tazewell, up 3.3 percent
to $120,000.

"The central region of the state really showed its resiliency in this
difficult first quarter with price gains reported in Champaign, Peoria,
Sangamon and McLean counties despite weather and economic factors," said
Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake.

"The Illinois economy appears to be reflecting the weakened national economy
after two months of strong employment growth however, in contrast to many
metropolitan areas, the slight declines in median house prices in the collar
counties of Chicago have been very much smaller than the double-digit declines
recorded in many parts of California and Florida," said Dr. Geoffrey J.D.
Hewings, director of the Regional Economics Applications Laboratory (REAL) of
the University of Illinois. "As we look into the future there appears to be
continued uncertainty about the true health of the national economy as a
combination of record high oil prices and the continuing uncertainties about
the housing market are probably going to spillover into continued employment
losses."

Adds Hewings: "If past history is any guide, Illinois is likely to experience
several months of declining economic performance since the state usually lags
national economic trends anywhere from three to six months."

Sales and price information is generated from a survey of Multiple Listing
Service sales reported by 35 participating Illinois REALTOR(R) local boards
and associations. The Chicagoland 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(R) is a voluntary trade association whose
60,000 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(R) 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 first quarter 2008 home sales statistics reports (pdf format) can be
accessed at the IAR Web site at www.illinoisrealtor.org, Market Stats.

SOURCE Illinois Association of REALTORS

Mary Schaefer of Illinois Association of REALTORS, +1-217-529-2600