arhome realty blog - Market Updates

A Hopeful Perspective On The 2023 Market

a hopeful perspective on the 2023 market

It's a new season in the real estate market, and we're ready to talk about it in a positive way. Below are reasons why you should have a hopeful perspective for this 2023 market.

1. annual home values are stable.

There is still high demand from buyers, and inventory is low —meaning that prices are not predicted to plummet anytime soon. For sellers, this means your equity is predicted to remain stable so far.

2. the market is normalizing.

Just because we aren't seeing a boom like in 2020, that doesn't mean the market is crashing. Instead, things are going back to normal. Let's face it — as much as the artificially lowered interest rates made mortgages more appealing and equity high for sellers,…

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2022 Housing Market Outlook

2022 housing market outlook

2021 was another extremely strong year in real estate. We saw one biggest booms in sales volume and prices in the last decade just keep getting stronger and stronger.

So what will 2022 hold? Are we headed for a crash, or will this keep going? Here's what experts are predicting.

prices

Despite the price bubble being the highest we've seen in over 10 years, most economist are predicting continued (albeit slower) increases that head towards stability. National Association or REALTORS chief economist Lawrence Yun says prices will rise another 5.7% above 2021’s already high numbers, with inflation alone accounting for a 4% increase. The rising prices will make housing affordability a continued issue, despite already…

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Top 3 Post-Covid Home Upgrades

It's no surprise that the year-long shift to staying at home has changed the things that homeowners value in their houses. What today's buyers are looking to upgrade as they shop for a new home has really changed because of this, and has changed which homes get swept up sooner when they hit the market. So if you're looking to put some new life into your home, see below for today's top investments (which you won't regret whether you sell or stay!).

#1: Outdoor Spaces

Outdoor spaces has been one of the biggest motivators for post-pandemic homebuyers. According to a recent survey by HomeLight, a referral service which surveyed over a thousand of agents across the nation, by far the number one desired upgrade were fire pits. Next came…

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Why Millennials Will Take Over the 2021 Market

Why Millennials Will Take Over the 2021 Market

Experts are saying that Millennials could account for at least 15 million home sales over the next 10 years. 

Millennials – the bulk of which are turning 30 this year – are the largest and most educated generational group in history. There are about 72 million in the population as of 2019, and most are beginning to enter their prime home-buying years. 

A few things are making this even more possible despite rising prices. One is historically low mortgage rates. The main one, however, is a dramatic increase in personal savings, which reached to an all-time high at the April peak of the pandemic lockdowns and remain above the historical average as recreations spending opportunities are limited. For…

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3 Home Trends to Watch for in 2021, According to Experts

These are the 3 Hottest Home Trends for 2021 According to Experts

Jewel-toned colors are expected to be on trend.

Designers and Real Estate experts are weighing in on what will be in, and what buyers are bored of seeing, as we move in to 2021. Hint: it's going to be a lot different.

1. Color Trends

For a long time now, we've seen home colors shift from neutral beige to neutral grays, with white-and-gold combos making their way into the mix. Things are about to change in 2021: get ready for bolder colors.
Professional interior designers spoke to 1stDibs, a design marketplace, and announced that jewel tones and warm earth tones will be the hottest color trends of 2021, with an emphasis on cozier hues. This includes a special emphasis on…

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Cook County FHA Limits Increase Almost $12,000

Cook County FHA Limits Increase Almost $12,000

Attention Buyers: Cook County FHA loan limits are set to go up almost $12,000 higher in 2021 than the 2020 limits.

The Federal Housing Administration (FHA) is increasing its 2021 single family house loan limit in Cook County, IL to $379,500, almost $12,000 higher than the 2020 limit of $368,000. The loan limit is based on the national conforming loan limit for Fannie Mae and Freddie Mac.

The purpose of FHA loans (loans backed by the Federal Housing Administration, which means you can get insurance-free loans with down payments as low as 3.5%) is to provide assistance to low-to-moderate income borrowers. Loan limits set the maximum amount of money a borrower can take out under the FHA program to…

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2021 Housing Market Outlook

2021 Housing Market Outlook

2020 was the year of surprises. We saw an instant dip in the market when the virus news came to the US, only to turn around and witness one of the biggest booms in sales volume and prices in the last decade.

So what will 2021 hold? Are we headed for a crash, or will this keep going? Here's what experts are predicting.

Prices

Despite the price bubble being the highest we've seen in over 10 years, most economist are predicting continued increases that head towards stability. Realtor.com chief economist Danielle Hale says prices will rise another 5.7% above 2020’s already high numbers. CoreLogic deputy chief economist Selma Hepp confirms the continued home price appreciation. There is general agreement that rising…

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Housing Market Remains Resilient: Summer 2020

"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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Mortgage Rates Drop Below 3%

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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Chicago Spring Market Update

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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