Stronger economy, jobs key for Illinois housing market

Housing affordability is high with mortgage interests rates at record lows and lower home prices, so it would seem the ideal time to move into homeownership. But economic uncertainty and job worries are fueling buyer wariness.

“The roles have reversed related to jobs and the housing market,” says economist Dr. Geoffrey J.D. Hewings, director of the University of Illinois Regional Economics Applications Laboratory (REAL), in part two of our recent interview at the Urbana campus. (Link here to view part one “Illinois housing market forecast for the second half of 2011.”)

“During the early part of the last decade the housing market was fueling the economy. Every time a house was bought or sold RCF Consulting estimates about $28,000 was created in direct expenses. In addition new housing construction had one of the highest ripple effects on the economy, some huge number of jobs directly and indirectly dependent on housing construction for appliances, for paint and so forth,” says Hewings. “Today the market will probably not recover until jobs recover.”

Watch the video “Economy & the Illinois Housing Market:”

This entry was posted in Economic Development, Housing Market by Ann Londrigan. Bookmark the permalink.

About Ann Londrigan

Ann Londrigan is Director of Association Outreach and Marketing for the Illinois Association of REALTORS®. She is responsible for increasing member engagement in and awareness for IAR Governmental Affairs and the RVOICE program as well as increasing participation in the REALTORS® Political Action Committee. She is responsible for overall marketing plans for IAR member benefits, educational products and events and is the content manager for IAR’s Facebook page and LinkedIn discussion group. She manages the IAR Welcome Center, serves as staff liaison to the University of Illinois Regional Economics Applications Laboratory, and coordinates the IAR housing stats program.

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