1. Welcome  Residential Market Statistics  Distressed Properties  Financing Statistics

2. 2 Oak Park Condo Statistics # Units# Condos% of Market 2007900497 55% 200858925142% 2009550190 34% 2010520200 38%

3. 3 Average Sale Price  The entire year of 2010 saw a 6.5% drop in sale price over 2009  The last year of sales indicates that the trend is still downward 2007$277,110 2008$241,610 2009$205,022 2010 $191,847

4. Distressed Property  Property selling for reasons of hardship  Bank-Owned (foreclosed), Court Ordered & Short Sales properties  NON-financeable property

5. 5 Today’s Market  Currently there are 326 Active Condo Listings  80 are disclosed on the MLS as being Bank Owned or a Short Sale  That is 25% of what is available to buyers

6. 6 Absorption Rate  Less than 5 months of inventory is the industry definition of a Seller’s Market  Over the last six months Oak Park is averaging about 13 condos closings per month  With an inventory of 326 there is a 25 month supply provided NO other units come on the market

7. 7 On the Horizon  102 units in Pre-foreclosure  69 units are Bank Owned  171 units in Oak Park are Financially Distressed, only 80 are on the market!  91 units will be on the market in the near future

8. 8 Financially Distressed House Sales in Oak Park Sold % of Market 2008 196% 2009 68 20% 2010 40 14%

9. 9 Financially Distressed Condo Sales in Oak Park Sold % of Market 2008 125% 2009 27 14% 2010 46 23%

10. 10 Financially Distressed Condo Sales in Forest Park Sold % of Market 2008 45% 2009 20 28% 2010 28 41%

11. Financed Buyers vs. The Cash Buyer

12. The Cash Purchase  Lending rules have Changed  Buyers unable to get Loans  Practices of Condo Associations are resulting in loan denial  Condos are selling for less

13. CASH v. Price Less than $100,000 $100,000 or more CASH (44 units) 2321 Financed (166 units) 12154

14. Conventional, FHA v. Price Less than $100,000 $100,000 or more Conventional (114 units) 11103 FHA (39 units) 138

15. 15 Financing  Buyers are getting Conventional & FHA loans  FHA & Conventional Loans have very similar requirements for the Association

16. Market Share  39 FHA (20%)  44 Cash (22%)  117 Conventional (58%)

17. 17 FHA in Today’s Market  FHA as an Financing Option is a stable option  Currently FHA occupies 20% of Oak Park’s condo sales

18. NOT an Issue  Right of First Refusal  FHA Spot Loans

19. Is Your Building Sound?  Be familiar with lender criteria  Conventional lending criteria is not always clear and consistent, FHA guidelines are a good start  The Building may not be eligible for financing  CASH buyer may be the ONLY option