Chicago’s Mid-Spring Real Estate Market Update

What is happening with the interest rates? You can find out today because we have the mid-spring real estate update for the Chicago area.

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Our mid-spring real estate market update is out, and today we’d like to tell you all about it.

So, where are we at from a mortgage standpoint? The rates are still the same. At the beginning of May, the Fed met and decided to relieve the federal funds rate in loans. We do expect it to change later in the year. They are predicting it to change twice—in August and September.

Where are the rates at generally right now? Rates are fluctuating depending on the program. But, they are still very good. They are expected to rise a little bit by the end of the year, however.

Now is the best time to get a mortgage. If you want to try to get the best possible rate, you want to do that at the beginning of the year instead of the end of next year.

From a seller’s standpoint, we know that inventory is low. There was a report that said that we are down by 9% in terms of the number of homes that are for sale at this point in 2018 compared to 2017. The good news is that in Chicago, even though we do have low inventory, prices have gone up year after year by about 7% to 8%.

50% of the inventory on the market is on the higher end, so we have the challenge with first-time home buyers of finding their right property.

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Even though we have low inventory in Chicago, prices have gone up year after year by about 7% to 8%.

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Pre-qualified people are having the issue of finding inventory even though they are looking and looking. When they do find it, they end up in a multiple bidding situation where a lot of times they don’t get it.

There was a report that said 25% of the deals that were done in 2017 were multiple offers and the property ended up selling for higher than the list price. Buyers, if you are looking to buy a property, and you see something that you like, you want to jump on it. Otherwise, somebody else will.

Sellers, get your homes on the market. It is a perfect time.

If you have any questions or would like to list your home, please call me. If you would need to get pre-qualified or pre-approved, you can contact David at 708-705-7911. We look forward to speaking with you soon.