We Value Bloomington-Normal

“Both the U.S. and Illinois economies appear to be flirting with recession,” says economist Geoffrey Hewings, director of the University of Illinois Regional Economics Applications Laboratory (REAL) in REAL's May 2008 Report. “With the rapid increases in gasoline prices generating inflationary pressure that may temper any future interest rate adjustment downwards by the Federal Reserve. Over the last twelve months, the Illinois economy has matched the employment growth rate of the U.S. economy for the first time in over a decade.”

Forecasts for the next three months indicate declines in home sales at rates observed since the beginning of the year.

Month-to-month changes suggest that May and June will witness increases in sales but July will experience declines.

Median prices in Illinois and Chicago will move upwards in May and June but will still be below levels recorded in the same months in 2007 (about 6 percent in Illinois and 2-3 percent in Chicago); median prices will fall back in July to levels below those in June but above those in May.

Find more reports and Illinois market data at www.illinoisrealtor.org/MarketCenter.