1. OUTLOOK ON HOUSING: A LOCAL PERSPECTIVE Jim Haisler, AHWD, CIPS, e-PRO, RCE Chief Executive Officer Heartland REALTOR® Organization

2. 2013: WHERE HAVE WE BEEN: ILLINOIS SAW STRONG HOUSING SALES AND PRICING GAINS ACROSS THE BOARD IN AUGUST, WITH MANY AREAS REPORTING CONTINUED YEAR-OVER-YEAR INCREASES. TO PUT THIS IN PERSPECTIVE, IT’S IMPORTANT TO REMEMBER THAT AUGUST 2012 SAW A SIZABLE SALES INCREASE, BUT THE MEDIAN PRICE WAS STILL DOWN 1%. IN FACT, AUGUST 2012 WAS THE TURNING POINT FOR HOUSING PRICES. THE DATA SHOWS THAT EVERY MONTH SINCE AUGUST 2012 MEDIAN PRICES HAVE INCREASED FROM A MEAGER 1.5% IN SEPTEMBER 2012 TO THE MUCH MORE ROBUST 13.6% GAIN IN AUGUST 2013. INFORMATION PROVIDED BY THE ILLINOIS ASSOCIATION OF REALTORS®

3. AMONG THE HIGHLIGHTS FOR AUGUST 2013:  THE CHICAGO AREA SAW VERY STRONG MEDIAN PRICE GROWTH. THE NINE-COUNTY PMSA RECORDED A 16.2% MEDIAN INCREASE TO $197,500; AND THE CITY OF CHICAGO SAW A WHOPPING 22.5% INCREASE TO $245,000.  TIME ON MARKET DATA SHOW THERE’S TREMENDOUS HEAT STILL IN THE HOUSING MARKET. HOMES ARE SELLING FASTER — AN AVERAGE OF 72 DAYS ON MARKET STATEWIDE IN AUGUST AND UNDER TWO MONTHS IN THE CHICAGOLAND AREA.  INVENTORIES OF AVAILABLE HOMES FOR SALE IN THE CHICAGO MARKET ARE DOWN BY NEARLY A THIRD. THE STATE AS A WHOLE SHOWS AN ANNUAL INVENTORY DECREASE OF 22.1%. INFORMATION PROVIDED BY THE ILLINOIS ASSOCIATION OF REALTORS®

4. BUT WHAT’S HAPPENING LOCALLY?

17. Information from RealtyTrac.com 10/15/2013 McHenry County, IL

18. Information from RealtyTrac.com 10/15/2013 McHenry County, IL

19. Information from RealtyTrac.com 10/15/2013 McHenry County, IL

20. Information from RealtyTrac.com 10/15/2013 McHenry County, IL

21. FORECLOSURE STATS: In September, the number of properties that received a foreclosure filing in McHenry County was 20% higher than the previous month and 46% lower than the same time last year. Home sales for August 2013 were down 12% compared with the previous month, and up 22% compared with a year ago. The median sales price of a non-distressed home was $178,000. The median sales price of a foreclosure home was $119,000, or 33% lower than non-distressed home sales.

22. FORECLOSURE STATS: Top 5 cities: Hebron1 in every 201 homes Spring Grove 1 in every 248 homes Union1 in every 252 homes Harvard1 in every 284 homes Wonder Lake1 in every 290 homes

23. OVERVIEW: Interest rates remain low 4.5% for a 30 yr fixed rate loan 3.5% for a 15 yr fixed rate loan variable rate loans have done extremely well QRM – 20% down requirement – GONE! McHenry County Stats: 307,000 people 9% unemployment 5.82% of our homes are vacant Crime rate ~ B Schools ~ B Consumer Confidence is up and people are buying!

24. OUTLOOK ON HOUSING: A LOCAL PERSPECTIVE Jim Haisler, AHWD, CIPS, e-PRO, RCE Chief Executive Officer Heartland REALTOR® Organization