Chicagoland Area Real Estate Blog and News

It’s no secret that we’re seeing changes in the Chicagoland housing market as interest rates climb and buyer demand slows. Fortunately, there are benefits to selling in a slowing seller's market. We’ve put together our top reasons selling your Chicagoland home now may be a better option than waiting to see what happens in the new year.

Benefit: You Have Great Options For Your Move

We’ve all seen the growing housing inventory in Illinois and throughout the country this year, as rising mortgage rates slowed the post-COVID lockdown real estate frenzy. While this seems like a negative for anyone getting ready to sell a home, there are benefits waiting for you when buying after you sell your home.

If you’re selling your home due to an upcoming move, it means you’ll have a broader range of options when shopping for your next property. This offers you a great opportunity to find a home at a competitive price. So, if you have been waiting to move due to housing inventory shortages, it’s good to know that more options are available than last year, and the bidding wars have slowed dramatically. While you may have to wait a little bit longer to sell, you’re not going to be facing repeated disappointment and heavily inflated prices when moving to a new home.

Benefit: Inventory Throughout Illinois is Still Low

While the number of available homes for sale has increased this year, this is still considered a sellers’...

Investing in real estate is one of the best ways to build long-term wealth, so it’s no surprise that I have a passion for it. I invest in real estate in pretty much every way I can, including flipping. However, I prefer to hold onto my properties.

Look at it this way. Housing appreciates by 4% every year on average. That means that if you invest in real estate, your wealth will double every 10 years.

As an example, I recently purchased a property for about $43,000. I put $15,000 into fixing it up and rented it out. However, I discovered I could no longer rent in this neighborhood because zoning laws had changed.

This may seem like a disaster, but real estate always has a plan B built into it. If you ever decide you no longer want a property, you can always sell. In the end, I sold the property for around $90,000 and made a nice profit.

When investing, make sure you always have a plan A and a plan B. If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!

Having a family often means that when you look for a place to settle, there are different criteria for the area. It needs to be more family-friendly to ensure your kids get the most out of their childhood. Some of the things considered for this list include great schools, diverse populations, plenty of recreation options, and other factors that make an area great for families of all sizes and ages. Here are some of the best Chicago suburbs to raise a family in no particular order.

Elmhurst

Starting off our list of best suburbs of Chicago for families, Elmhurst has an excellent school system. In fact, statistically, they have some of the best testing scores in the area. Elmhurst schools are the tip of the iceberg for those with inquiring minds, making this a great place to raise a family in the Chicago suburbs. Elmhurst offers museums, a symphony, and a library. Plenty of parks, a community center, pools, a golf course, and other outdoor entertainment round out this area’s family-friendly potential.

See Elmhurst, IL homes for sale

Hickory Hills

Cook County is home to several great suburbs, but Hickory Hills is one of the best Chicago suburbs for young families. Hiking, biking, and equestrian trails are perfect for those families that like to...

I recently had a family member pass, and they didn't have a will or an estate. The kids all have different ideas about what to do with the property, so there's a lot of bickering. None of this had to happen—it all could have been planned for and handled in a will.

Everybody needs a will, and if you own real estate, you also need a trust. You want to stay out of probate because that costs more than creating the will and trust. Having things planned out will also reduce stress during an emotional time. On top of that, establishing a set plan will avoid family members infighting and allow them to grieve together. 

Many attorneys will provide a free consultation over the phone to give you some options. If you need one, we're happy to get you in touch with somebody so you can save your loved ones that headache when you pass.

If you have any other questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.

Properties are no longer selling as quickly as they had over the past two years. Due to this slight slowdown, I often get asked, “Should I stage my home?” The answer is, "Yes, you should do things now to get your home in the best condition possible by spending money smartly and your time wisely."

The market’s not what it was a few months ago when people were buying regardless of what the property looked like. Homes that are in move-in condition can still get multiple offers. Paint and flooring are always the first two things you should revamp. Neutralize colors to something that would appeal to the vast majority of buyers and still avoid white as it is very sterile and buyers today generally don't find it appealing. Flooring should be consistent and also neutral. You may want to consider an LVP (luxury vinyl plank) or neutral carpet. Anything after those two should be discussed with your trusted real estate professional as you can spend more on additional upgrades than you can get out of them in the sale.

We are happy to provide information to contractors we trust in order to help you through this process. If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.

June was a great month for our market! Today I’ll share our latest findings to keep you up to date with all the changes.

The average sales price in May was $409,000, but by June, it increased to $436,000. That’s an exciting change for potential home sellers, but a $27,000 increase in just a month isn’t sustainable. In fact, price jumps like that are one reason the Federal Reserve has been increasing interest rates—to slow down the market. Rates have already hit 6%, and we anticipate that they’ll have increased by another half point by the end of July.

"We’re still in a crazy seller’s market."

Around 20,0000 homes were added to the market last month, leaving us with around two months of supply. This is fantastic news for buyers who have been struggling to find options. 

Despite two more months' worth of inventory, we’re still in a crazy seller’s market. However, activity has slowed down due to rising interest rates pushing some buyers out of the market. The homes that are selling take slightly longer to leave the market than they did over the last couple of years.

If you have any questions about what’s going on in the market or how it will affect your plans to buy or sell a home, don’t hesitate to give me a call or send me an email. I’d love to hear from you.

Have you been struggling to find a home in this market? If so, here’s some exciting news: We're starting to see an increase in inventory, meaning you’ll have more options to choose from. More inventory will also likely lead to lower prices and more negotiating power. Buyers should have their credit checked to verify that they’re qualified so they can start looking in the neighborhoods they’re interested in.

Interest rates have stabilized for the time being, but we don't know what they'll do in the coming weeks and months. However, with them being stable at the moment, now is a great opportunity to go find the dream home you've been looking for. It’s still a great time to invest in real estate. On average, if you buy a property today, it will be worth 50% more in 10 years.

If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.

Are you struggling to find a home in the market right now? I have great news for you! We are starting to see an increase in inventory, so you’ll have more options when choosing your home. You can negotiate more easily, and you won’t feel like you’ve overpaid.

Buyers should get their credit checked to verify what they qualify for. Start looking at neighborhoods you’re interested in. Interest rates have stabilized recently, and with inventory increasing, it’s the perfect opportunity for you to find the dream home you always wanted.

Now is still a great time to invest in real estate. If you buy a property today, it will be worth 50% more in 10 years. If you need more help with your real estate concerns, don’t hesitate to call or email me. I look forward to hearing from you.

One of the biggest questions we are asked in today’s market is, “Are we in a real estate bubble?” Back in 2007, home values dropped after the last bubble burst. However, current prices are higher than they were before the last crash.

That’s my key point for you today. If you buy real estate as a long-term investment, your value will increase to a higher level than it is today. It doesn’t matter when you buy; over time, values increase. That’s why real estate is considered such a great investment. 

So should you buy right now? Absolutely; rates are slightly higher now, but they will come down eventually and allow you to refinance. 

If you have any questions about buying a home or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

The latest numbers from April just came in, so today, let’s take a look at them to see what’s going on in our housing market.

The average sales price in March was $395,000. In April, that number climbed to $412,000. Meanwhile, the average number of days on market decreased to about 40 in April. This is a normal trend for this time of year. 

If you’ve been paying attention to the news, you know that interest rates continue to increase. This means it’s becoming more expensive each month to buy a home. 

Is it a good time to buy or sell? The answer is still yes. Sellers should list their properties before rates get too high and buyers’ purchasing power decreases. For the same reason, you should buy as soon as you can. The higher rates get, the less home you can afford. 

If you need help buying or selling or have any questions, please call or email us. Our team is always willing to help!

If you’re interviewing agents to sell your home, what questions should you ask? Of course, you want to ask about what’s important to you in an agent, but there are a few ideas you might not have considered.

One of the most important questions is, “How many homes have you sold personally?” New agents are trained to say how many homes the office has sold instead of their personal count. You want to figure out whether you’re working with an experienced agent or not.

Another great question is, “What’s your average list-to-sales price ratio?” If someone has a low ratio, that means they’re listing your property too high and selling it for too little. The average list-to-sales price ratio is 97.4%, so if they have a ratio of 95%, for example, that means their pricing strategy is less than ideal.

"Experienced agents will always get you more money."

You should also ask, “What type of marketing will you do to sell my home?” Most agents just put your home on Zillow or social media, but understand that these methods are pretty basic. You’re looking for someone who will do more to help drive people to your home.

Don’t forget to ask, “Who will I communicate with?” You won’t always connect with the person you’re hiring, and you might not always communicate as often or in the way you would like. Ask about...

Let’s talk about the March 2022 real estate market in Chicagoland.

Our average sales prices went up significantly last month, almost 10%. The peak last month was $395,000. In February, the average sales price was $368,000. Our highest ever sales price was just over $400,00 in June 2021, so we are almost back to that same number.

This increase might seem weird since our interest rates just increased so much. However, understand that this average sales price is from properties put under contract 30 to 60 days ago, so they weren't affected by the increased rates. We anticipate that the average sales price will fall over the next few months.

"Our market should adjust over the next few months. "

The average days on the market went down to 58 from 66 in February. This is normal; the days on market always increases in January and February and decreases in March. It will probably continue decreasing as we head into summer.

The number of homes for sale is just over 12,000. A year ago, that figure was about 18,000. We have about a third fewer homes for buyers to buy. 15,000 new homes went on the market, and just over 12,000 properties went under contract. We’re putting inventory on the market, and it’s almost all selling immediately. Right now, we’re living in a low-inventory market, but that should change soon. There are fewer buyers because of...

Recently, I’ve noticed a lot of sellers are excited to sell their homes, but they’re less enthused to buy. Since inventory levels are so low, I understand the concern. Don’t worry; if you’re looking to sell your home and buy a new one, you have options, and I want to go over a few of them with you today: 

1. Negotiate a long closing with your buyer. Instead of a typical 30-day close, try and have a 90-day one. In this seller’s market, many buyers are willing to accommodate this need. With such a long close, you should have plenty of time to find a new home.

2. Use a reverse contingency. In this scenario, you would insert a clause into your purchase agreement that makes your sale contingent on finding another home to buy. This is very convenient, but some buyers may not be interested in a house with one in place.

3. Negotiate a rent-back agreement. In this situation, you close on the house as normal, then rent the property back from your buyer while you look for a new home. These are increasingly popular, but some mortgages limit the amount of time you can rent the property from your buyer.

"Each option has its pros and cons. "

4. Find temporary housing. After your home sale, you could rent for a year and give the market time to settle. This option is popular with people who don’t know if they want to stay in their area since there is little...

Have you forgotten what the market was like pre-pandemic? Let's talk about what's changed over the past couple of years and how those changes benefit you.

Before the pandemic, interest rates were higher. At one point, they were as high as 5%. Today they're still down in the 3% range, although we anticipate that they will go up this year. Interest rates during the pandemic have been fabulous. At some points, they were in the 2% range. The average sales price has gone up 24% since January 2020. The $293,000 house you bought is now worth $363,000. Appreciating $70,000 in two years is huge!

"Interest rates are still low, but they will likely increase soon."

The amount of time it takes to sell a home has decreased. Before the pandemic, it could take as long as 100 days to sell a home. Since then, days on market has gotten as low as 35 days. Right now, it’s about 60 days.

In terms of pre-pandemic inventory, there were 30,000 homes for sale in our area. Now there are only 15,000. With 50% less competition, you can expect more money when you sell. That's exactly why prices were driven up during the pandemic.

If you have any questions or are interested in buying or selling, I'd love to help you. Reach out to me by phone or email. I look forward to hearing from you.

Today I’m going to go over what happened in the Chicagoland real estate market in February 2022:

• The average sales price last month went up 2% to about $370,000. If we compare February 2021 to February 2022, sales prices have gone up 10%. That’s great for sellers.
• The average days on market went up to 66. This is normal; we usually see the days on market increase between December and February. Next month, we should see this number drop.
• The average number of home sales is down 33% from February 2021 to just under 12,000. There aren’t a lot of homes out there to buy, but great buyers are still winning properties. It’s a good time to look for a house before interest rates increase.
• The list to sales price is up to 98.5%. That means when a property is listed, it sells for 98.5% of its asking price on average. Keep in mind that this only applies if you price your property reasonably.

If you have any questions about these stats or real estate in general, feel free to call or email me. I would love to help.

People often ask us how our commission right works—I mean, who wouldn’t want to know? Today I’ll quickly cover a couple of things to note about commissions here at the Kite Team.

We can help you sell your house starting at a 1% commission rate that increases based on the services you want. We only charge 1% commission in cases such as when you find your own buyer (like a tenant or family member) and you just need us to walk you through the contract, disclosures, etc.

For the listing side, the commission covers professional photography for your home, signs, and other services to expose your listing to the most possible buyers. Remember that there is a commission for marketing on the seller’s side as well as for the buying side. Agents and sellers need to be mindful about what they tell buyers concerning the commission rate because that can affect the number of showings you receive.

If you have any questions or would like to speak in more detail about our commission rates, don’t hesitate to call or email us. We’d love to have a conversation with you.

Those who are struggling with paying a mortgage have options.

Recently, I've started getting questions about being late on mortgage payments and whether you need to sell your house.

There's a lot of fear around this because people have been in forbearance for quite some time, and all of a sudden, they're now forced to come up with the money despite their situation not having changed. If you or somebody you know is behind on payments, I have options for helping those who are struggling to pay their mortgage. I’m happy to discuss and walk you through all your options so you can make the best decision.

If this doesn’t apply to you, please pass this information on to somebody who may need it. If you have any questions, please give me a call. I look forward to hearing from you.

These are the January numbers from our market that you should know.

Welcome to our recap of the January 2022 real estate market stats for homebuyers and sellers. If you’re a seller, I’m going to guess that you’re interested in the average sale price. Over the last six months, it has hovered right around the $360,000 range after peaking at around $400,000 last June. We have seen a 10% adjustment, but that adjustment has been stable.

You might also be wondering how much inventory we have. There is just 1.1 months’ worth of inventory right now, which keeps us in a strong seller’s market.

With such low inventory, things are a little more difficult for homebuyers.

The average price has flattened out, but what about the list-to-sale price ratio? Right now, sellers are getting 97.4% of their list price on average. This peaked at 100% last June. The average days on market has increased from a valley of 35 in August to 61 days in January.

Homes are taking slightly longer to sell, and price growth has slowed down a bit. However, we’re still seeing multiple offers, and we’re still in a strong seller's market.

If you have questions about today’s market, what you need to do to successfully buy or sell, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

This is how rising rates will affect both sellers and buyers.

Are you looking to buy or sell a home this year? If so, have you wondered how interest rates will affect you? Most of the time, we think that interest rates are only crucial to buyers, but they're also important to sellers.

If you want to sell your home and interest rates rise 1% this year, buyers will be able to afford less. Therefore, sellers may see their values fall and attract fewer buyers. As a buyer, if interest rates rise 1%, you can afford 10% less. If you qualified for a $300,000 mortgage in December, a 1% rise in rate would mean that you now only qualify for $270,000. If you were looking for a $300,000 home and couldn't find something that made you happy, you’re not likely to find an ideal home for $270,000.

Interest rates will increase this year, so if you have any interest in buying or selling, you should get in the market soon. If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.