Posted by Amy Kite on Thursday, July 28, 2022 at 7:00 AMBy Amy Kite / July 28, 2022Comment
We’re still in a seller’s market, though things are slowing down a little. .
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....
Posted by Amy Kite on Friday, June 17, 2022 at 7:00 AMBy Amy Kite / June 17, 2022Comment
Now is a great time to invest in real estate.
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.
Posted by Amy Kite on Monday, April 18, 2022 at 7:24 AMBy Amy Kite / April 18, 2022Comment
Here is your march 2022 Chicagoland real estate market update.
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...
Posted by Amy Kite on Tuesday, March 29, 2022 at 7:19 AMBy Amy Kite / March 29, 2022Comment
Comparing the market from before the pandemic to the current situation.
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.
Posted by Amy Kite on Thursday, March 17, 2022 at 11:00 AMBy Amy Kite / March 17, 2022Comment
Let’s take a look at the market stats for our February 2022 market.
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.
Posted by Amy Kite on Thursday, February 17, 2022 at 6:00 AMBy Amy Kite / February 17, 2022Comment
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.
Posted by Amy Kite on Monday, January 10, 2022 at 10:27 AMBy Amy Kite / January 10, 2022Comment
Here’s what you need to know about the latest statistics from 2021.
It’s hard to believe we’re already in 2022! Many people take the new year as an opportunity to reflect, and we want to do the same. We’ve pulled three important market statistics from 2021 so we can do year-over-year comparisons all the way back to 2018.
The first stat we want to look at is the months’ supply of homes. This number measures inventory, and it refers to the number of months it would take for every home currently listed to sell. In 2018 we had 3.2 months’ supply of homes, in 2019 we had 3.2, in 2020 we had 2.1, and in 2021 we had 1.2. Keep in mind that six months of supply is considered a balanced market, so these numbers are crazy. We expect these numbers to climb slightly soon since people will be preparing their homes for the spring.
We can see a big difference between our pre- and post-pandemic markets.
Next, let’s take a look at the average sales price. In 2018 it was $290,000, in 2019 it was $299,000, in 2020 it was $336,000, and in 2021 it was $366,000. Just like with months’ supply of homes, we can see a big difference between our pre-and post-pandemic markets. It will be interesting to see how much homes appreciate this year.
The last statistic we want to talk about is the average days on market, and it measures how long it takes a property to sell. In 2018 it was 86 days, in 2019 it was 92,...
What’s happening in Chicago's real estate market? Let’s take a look at the numbers.
There were 17,412 homes for sale in the Chicagoland area this November. This is a bit lower than the 21,880 homes that were for sale in October. Our inventory numbers continue to shrink, and if you’re a buyer, you’re probably feeling it.
Meanwhile, we have around 1.5 months of inventory. In case you don’t know, inventory is a measure of how many months it would take to sell all of our inventory if no new homes came on the market. A six-month supply of inventory is considered a balanced market. This number is also down from October, where the months of supply was 1.9.
The average list price was around $373,667. This number has continued to fall, but it doesn’t mean we’re heading for a crash. Instead, sellers are just running into the realization that overpriced homes won’t sell, even in this market.
"If you are a seller, this is an amazing time to list your home."
The average time a home sits on the market is 47 days. This is up from...
Let’s go over what happened in the real estate market here in the Chicagoland area over the month of October 2021.
The average sales price was $358,825. That’s a 1% decline from September, which was $361,165, and an even sharper drop from when the market peaked in June at $400,109. One year ago in October 2020, the average sales price was $344,879, showing that the average sales price has increased since last year.
In October 2021, the average original list price was $381,000. The market peaked back in February when the average was $441,000. One year ago, the average was $391,000, demonstrating that homes last month were listed for $10,000 less on average.
But how long were homes spending on the market? Between 2018 and 2020, the average ranged somewhere between 60 and 105 days, meaning that it would take an average of two to 3.5 months for a property to go under contract. The average market time as of last month was 42 days, so homes are selling faster.
"You’ll make more money from your sale than you would have a year ago."
Today I want to give you an update on our market through the month of September.
Compared to March 2020, home sales in September were down 34%. This is a big reason for our crazy market. When there’s less inventory, more people fight over the few homes that are left. We only have a current supply of two months, which means it should take less than two months to sell your home. If it has been on the market for longer than that, it’s probably time to consider a change in price.
Meanwhile, the number of homes under contract is down 18% from our peak in May of 2021. But since that was the peak, don’t look back at it to figure out how to price your home. For example, people are on average receiving 98% of their list price. Back in June, people were receiving on average 100% of what they asked for.
"Take advantage of our great market while you still can."
Here’s the big one: In the Chicagoland market, the current average sales price is $361,700. Back in June, it was $400,000. This means pricing has gone down 10% in the last few months.
We’ve been hearing for so long now that it’s a hot seller’s market, but if you’re in the industry, you likely felt the change around mid-May or at least the end of the month. I spoke with an appraiser the other day, and they felt the change too. If your home wasn’t on the market by May, you may have missed the peak, but that doesn’t mean it’s all over;it just means the intensity is slowing down some. Buyers are getting a bit more time to think, they aren’t having to make split-second decisions, and they aren’t competing with as many other buyers as they were.
Nationally, our median price is currently $350,000, but in the Chicagoland area and a little south of that, it’s $262,500. A lot is going on in our market; it’s still a wonderful time to jump into it. We likely have another month before the market changes again because we’re moving toward having the more typical market that we saw before the pandemic.
If you have questions about our market or would like to know the median price in your area or town, I’d be glad to help you. Give me a call or send...
Back in April 2019, there were over 47,000 properties for sale on our MLS. In April 2020, we still had over 40,000 properties for sale. At the end of April 2021, however, there were under 20,000 properties for sale on the MLS. Inventory is down over 50% in just one year.
This market is being driven by this lack of inventory. Prices continue to rise as demand for homes remains high. When is this going to change?
"Take advantage of this extreme demand by selling now."
If I had a crystal ball, I’d tell you. However, we’re keeping a very close eye on things as we head toward the end of the foreclosure and eviction moratorium. I predict that we’ll see some more inventory hit the market at this point and things will get a little better for buyers. As inventory expands, the market will change.
If you’re a seller, this means that now is probably the best time for you to sell. Don't expect this market to last forever...
If you’ve been keeping an eye on the real estate market, you’re probably aware that interest rates have gone up by 1% since last month. What does that mean for you? To keep it simple, if you were pre-approved to buy a house a month ago at $300,000, today you would only be approved for $270,000.
The general rule of thumb is that a 1% increase in the interest rate decreases your buying power by about 10%. This affects home sellers, too. Their pool of buyers shrinks as rates go up, and housing values will go down as well.
We could absolutely see a change in this market due to an increase in rates, so we’ll make sure to keep an eye on it for you moving forward.
If you have any questions for us about interest rates or real estate in general, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.
Posted by Dan Bennett on Wednesday, July 24, 2019 at 7:00 AMBy Dan Bennett / July 24, 2019Comment
Shifting trends and industry-leading research are pointing toward some valuable projections about the status of the housing market for the rest of the year.
If you’re thinking of buying or selling, or if you just want to know what experts are saying is on the horizon, here are the top three things to put on your radar as we head into the coming months:
Home prices are appreciating at a more normal rate: Home prices have been appreciating for about ten years now. Experts at the Home Price Expectation Survey, Mortgage Bankers Association, Freddie Mac, and Fannie Mae are forecasting continued growth throughout the next year, although it should be leveling-off to normal appreciation (3.6%), as we move into 2020.
Interest rates are low: Over the past 30 years, the average mortgage rate in the United States has been 8.27%, and rates even peaked as high as 18% in the 1980s. Today, at 3.81%, the rate is considerably lower than the historical 30-year average....
Posted by Dan Bennett on Wednesday, June 12, 2019 at 7:00 AMBy Dan Bennett / June 12, 2019Comment
A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.
The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.
1. Interest Rates
One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates....
Posted by Dan Bennett on Monday, May 13, 2019 at 7:00 AMBy Dan Bennett / May 13, 2019Comment
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up and distressed sales (foreclosures and short sales) have fallen to their lowest point in years. The market will continue to strengthen in 2019.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory! Buyer demand naturally increases during the summer months, but supply has not kept up.
Here are the thoughts of a few industry experts on the subject:
Posted by Dan Bennett on Thursday, May 9, 2019 at 7:00 AMBy Dan Bennett / May 9, 2019Comment
Recently, we reported that many believe a recession could happen within the next two years. We explained that 70% of economists and market analysts surveyed last year believe that a recession will occur in 2019 or 2020 and that 42% of consumers currently looking to purchase a home also agree that a recession will occur this year or next.
However, the U.S. economy has performed well in the first quarter of 2019 and that has caused some experts to change their thinking on an impending economic slowdown.
Posted by Dan Bennett on Thursday, April 11, 2019 at 7:00 AMBy Dan Bennett / April 11, 2019Comment
The percentage of home price appreciation on a year-over-year basis has decreased each month for over a year. The question was how far annual appreciation would fall. It seems we may now have the answer.
In a recent post on the National Association of Realtors’Economists’ Outlook Blog, it was revealed that Realtors are starting to sense that home values are beginning to stabilize and that we may see appreciation beginning to accelerate again:
“About 3,000 REALTORS® who responded to NAR’s February 2019 REALTORS Confidence Index Survey had more optimistic— although modest— home price growth expectations over the next 12 months. Respondents expect home prices to typically increase by 1.9 percent nationally, up from 1.4 percent in the January survey.”
The thinking that home appreciation has bottomed-out was also confirmed in two additional housing reports recently released:
Posted by Dan Bennett on Thursday, April 4, 2019 at 7:00 AMBy Dan Bennett / April 4, 2019Comment
The Housing Market has been a hot-topic in the news lately. Depending on which media outlet you watch, it can start to be a bit confusing to understand what’s really going on with interest rates and home prices!
The best way to show what’s really going on in today’s real estate market is to go straight to the data! We put together the following three graphs along with a quote from Chief Economists that have their finger on the pulse of what each graph illustrates.
“The real estate market is thawing in response to the sustained decline in mortgage rates and rebound in consumer confidence – two of the most important drivers of home sales. Rising sales demand coupled with more inventory than previous spring seasons suggests that the housing market is in the early stages of regaining momentum.” - Sam Khater, Chief Economist at Freddie Mac