Gains made in the Chicago area in July while fractionally lower statewide. According to IAR's latest report, the Illinois median home sale price was $211,000, down 0.5 percent from $212,000 one year earlier. The median home price for the Chicagoland Primary Metropolitan Statistical Area was $262,500, up 2.6 percent from July 2006. There were 14,553 total home sales (which include single-family homes and condominiums) in July 2007, 9.9 percent below July 2006 with 16,156 homes sold. "Home prices are performing favorably in Illinois, yet sales continue to track lower compared to a year ago and there are many factors at play in the marketplace. We certainly are seeing the effects from some tightening in lending standards but this should only hold back sales in the short term," said Robert Zoretich, president of the Illinois Association of REALTORS. "Homebuyers continue to act cautiously waiting for things to stabilize, but now is when they truly have an advantage with so many homes available in many markets."

Our economy is in the sixth year of expansion, since the fourth quarter of 2001...that is getting long in the tube, according to William Strauss, Senior Economist and Economic Advisor with the Federal Reserve Bank who spoke to a crowd of REALTORS gathered for the Chicago Assosciation of REALTORS International Real Estate Expo on August 24. Strauss stated that several key economic factors are still in check including moderate inflation, low unemployment, strong job growth, income growth, low mortgage rates and the stock market continues to rise. He added, residential home sales should hit bottom by the first quarter of next year before improvements are consistently registered, "The credit issue is remaining tight," Strauss said, "It has become more difficult to borrow and the riskier the loan product the more difficult to borrow." He indicated that people are putting through multiple loan applications both with banks and mortgage lenders to make sure they get approval on a mortgage.