Market Updates

Current real estate market updates

Found 10 blog entries about Market Updates.

"While the health and economic impact has been significant, the U.S. housing market has remained surprisingly resilient, and consumers continue to view home ownership as the foundation of the American Dream. Home buyers remain steadfast in the main attributes they seek--three bedrooms, two bathrooms and a garage. However, the quarantine has made people rethink where and why they want a new home," says realtor.com® Senior Economist George Ratiu. 

The market is largely buyer-driven - if there is a demand, properties will sell. If no one wants to buy, the market will be slow. So let's see what current buyers are thinking and doing right now.

Here are the findings of the most recent, post-covid survey from realtor.com®.

How do buyers feel about

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The average rates on 30-year fixed-rate loans hit record lows this week. Mortgage News Daily reports that the average rate for a 30-year fixed rate loan is just barely above 3%; for FHA loans, its dropped all the way to 2.75%.

That’s lower than we’ve seen in many, many years.

Why are rates dropping so low?

Of course, we know the COVID-19 pandemic is involved. But according to Fed chairman Jerome Powell, this has hit the economy in ways that are worse than any typical recession. Powell stated recently: ”The scope and speed of this downturn are without modern precedent and are significantly worse than any recession since World War II.” That’s powerful.

With predictions that our economy may not recover until the end of next year, the

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Ever since COVID-19 news hit the world, the real estate market met a significant crossroads: many people were questioning if it was a good time to sell, for safety, and what would happen to our still-strong prices. Data now backs up that we did, in fact, see a halt in the market. Especially towards the end of March, there was a drastic drop in newly listed properties - less than half of the amount listed that week last year (keep in mind, before the pandemic hit, 2020 numbers were exceeding 2019 numbers). So yes, the response was strong.

There is still good news in all of this: first off, our data shows that as of May 4, 2020, median sales prices are still higher than 2019, and haven't seen any huge shifts aside from a small dip 2 weeks ago (see

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As the world is feeling the COVID-19 impact, it seems no industry is immune. Real Estate, above anything, is getting hit with the "worry" impact more than a physical industry disruption. Buyers nervous about job security are nervous about future mortgage payments. Sellers are nervous to let viewers inside their homes. Investors are nervous about future property values. Nervous, nervous, nervous.

But for those in search of the silver lining during these trying times, here's some good news: despite the Illinois mandatory shut down, the real estate industry is keeping up at a steady pace so far — and we have facts to prove it. For all those who need some industry encouragement, we've put together a list of positive local real estate news for our

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What will 2020 look like for the housing market? Chief Economist Danielle Hale of realtor.com®. says we should expect low inventory and a steadying of prices. Two things are fueling the inventory competition, Hale states; first, "Millennials are in a major home-buying phase," creating a demand for properties - especially since they are the largest group of buyers in US history. But, "we are not seeing a lot of sellers coming to market for various reasons." Gen X (homeowners who bought before Millenials), for example, seem content to stay where they are. And baby boomers are also not finding a any good reasons for selling - "they are living longer healthier lives and aren’t rushing to downsize right now,” Hale comments.

What about prices?

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Why It's Still a Great Time to Buy

Mortgage rates have hit historic lows this month, unlike anything we've seen since 2016. The 30-year fixed-rate mortgage averaged 3.64% last week, and the 15-year fixed-rate mortgage dropped to an average of 3.16%. Freddie Mac reports that during 2019, there were only 11 weeks where mortgage rates actually increased - the rest of the year, they kept dropping.

“With both the unemployment rate and mortgage rate below 4% and near historic lows, it is no surprise that the housing market regained momentum with home sales and construction at or near decade highs,”says Sam Khater, chief economist at Freddie Mac.

This good news does come with an exception - according to the Chicago Association of REALTORS®, we are

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First things first: the housing market is still strong, according Daniel McCue, senior research associate at Harvard University's Joint Center for Housing Studies. But a housing shortage has led to big competition and higher prices, bringing down affordability, and generally putting a slowdown on the speed of the market. So If you’re planning to buy or sell this year, here are 2 the main takeaways:

1. Home Sales Are Slowing

The number of home sales has been steadily falling. It could be due to a small inventory, an increase in prices, and the intense home buying competition that goes along with that. The decline was most notable at the end of 2018, when the mortgage interest rates increased.

The amount of homes for sale is rising now, but sales are

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How to Afford a Home in 2019

Your Down Payment

Before you can purchase a home, you’ll need to have a down payment ready. Most conventional loans will require 20% of the home price in order to avoid private mortgage insurance (PMI), but don’t panic - there are many loans that will let you purchase with a much lower down payment. FHA loans require a minimum down payment of 3.5%, and some conventional loans may go even lower (but will include PMI); there are even programs that will let you buy for $0 down (such as veteran VA loans). To find out more about available loans programs and their requirements, don’t hesitate to reach out to us.

If your budget is tight, you can save for a down payment by putting aside your tax return, a job bonus, or

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Most Spring 2019 Buyers Are Looking for Homes in Need of Renovation

Are you worried about updating your home before you put in on the market? With all the beautiful home renovations we see on TV and Pinterest today, sellers may sometimes feel the need to modernize their home to be competitive in today's market. But recent data shows otherwise. In fact, new realtor.com® studies show that as many as 60% of buyers this spring are considering homes that need renovations; of these buyers, more than half are willing to spend as much as $20,000 on remodeling.

"The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating," says Danielle Hale, realtor.com®'s chief

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Data shows that homes listed in Chicago during the first week of April sell for more than those listed in any other week during the year.

According to Danielle Hale, Chief Economist at Realtor.com, homes listed the first week April have 14 percent more views, 5 percent less competition, and sell 6 days faster then any other week of the year.

Most importantly, typical homes listed in the first week of April have seen almost 6 percent higher prices (around $17,000 more on average).

Economist Hale states that “June is often considered the peak of home buying season, but our analysis found the first week of April is best for sellers looking to maximize list price, and also reduce the risk of price cuts and competition from other sellers.” Why? buyers are

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