FOURTH QUARTER STATS SHOW HOME SALES FALTERED

Home sales during the last quarter of 2005 were off the 2004 pace by roughly 6%. This decline, which was anticipated, may in part be fueled by a cooling off of speculation, particularly in the condominium and townhome sectors.

Despite the fourth quarter decline, the North Suburban residential real estate market averaged a 6% increase in prices during 2005, a lesser increase than the more robust double-digit numbers that endured throughout most of the past six years. With inflation concerns on the horizon and higher interest rates likely, due to today's fourteenth consistent increase in short term rates by the Federal Reserve, home buyers and sellers should anticipate future market adjustments. Two of the more significant changes include increased inventory and longer market times which now are 30-40% longer than they were in 2004. Realistic pricing for those needing faster sales will be critical to achieving that result.