Real Estate and Mortgage Snapshots for 2019

Interest rates, sales numbers, and more. Here’s what to keep an eye out for in 2019.

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Today we'd like to share with you our 2019 forecast for both the real estate and mortgage markets. In the coming year, the average sale price will likely rise by 1% at most. This is typical of a normal market.

In the mortgage world, things are a little different. In the fourth quarter, rates jumped up a bit, but they’ve gone down since. The Fed recently came out and said that they’d be more conscientious when raising rates in the future.Though rates may go up slightly this year, they should remain at an affordable level for the time being.

While inventory is going to go up, interest rates are staying flat. This equals a great opportunity for homebuyers. 

If you have any questions for us about our market forecast, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you soon.

Learn About Another Great Chicagoland Community

Lakeview is one of the most walkable communities in Chicagoland, and I want to tell you more about it.

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Today I want to tell you about another wonderful Chicagoland community: Lakeview. Some would call it one of the most walkable communities in Chicago. No matter where you’re at, it seems you’re always close to shopping centers and boutiques. As an added bonus, you’re just 10 minutes from Wrigley Field, and depending on where you’re at, you might also be within walking distance to the Lincoln Park Zoo. You’ll find plenty of great subcommunities within Lakeview, including East Lakeview, West Lakeview, Boystown, Wrigleyville, and Southport Corridor—one of the hottest in all of Chicago.

Chicagoland Market Outlook for Fall 2018

The Chicagoland real estate area is starting to shift away from a seller’s market. Keep reading to find out how.

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The weather is colder, the leaves are changing, and fall is here. People out there want to know what this means for the real estate market, so today we're excited to share our fall 2018 market outlook with you. 

We are starting to notice an increase in the number of homes for sale. At one point, we had around three months’ worth of inventory, but that number has jumped up to about four or 4.5 months’ worth today. Although we’re still in a seller’s market, we are starting to trend more toward a neutral market where neither buyers nor sellers have an advantage.

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We are starting to trend more towards a neutral market.   

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In the mortgage world, we’re still seeing signs of this shifting market as well. There are fewer multiple offer situations out there and not as many buyers in the market. This is making things easier for buyers and helping them win a great home without overpaying.

The good news about our current market is that it’s perfect for anyone who is thinking about buying a home, selling a home, or getting a mortgage. If buying or selling is in your future or if you just have any questions, don’t hesitate to reach out to us via phone or email today. We look forward to hearing from you soon.

The Effect of Rising Interest Rates on the Market

Interest rates rose again. How will this affect our market?

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On September 26 interest rates went up again—this time by 0.25%. This time by a quarter of a percent. Today we will be discussing how this recent rate change will affect the real estate market.

David says that he doesn't think it will have much of an impact, because this change comes as no surprise. Since so many people saw this coming, he believes that it was already worked into the mortgage market in terms of rates. However, we may still see a slight fluctuation. If the Fed does something surprising, though, then we'll see a change.

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The rising interest rates won't affect the market because it isn't a surprise.   

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Rates, of course, do affect other things, such as credit cards, instantly. They also affect car loans. So, over the long-term, the rising cost of credit could affect the mortgage market.

We still do expect one more rate increase this year in either November or December.

If you have any questions about this, please feel free to reach out to us. We would be happy to help.

An Update on Interest Rates and Our Chicago Market

Today we want to give you a midsummer update about interest rates and our market.

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We have reached the end of July and you know what that means. It is time for a midsummer update.

As far as mortgages are concerned, we are in full swing for the summer buying season. Low inventory is affecting buyers and causing them to have a difficult time finding homes. In fact, a lot of pre-approved buyers haven't been able to find houses.

Currently, buyers are fighting interest rates. And, everyone seems to feel that interest rates are going to go up probably two more times this year. Since they have already gone up twice this year so far, that means that they are expecting it to increase four times total. We think this may happen in September and December.

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In the last few months, inventories have climbed, especially in the downtown area.  

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We are still dealing with low inventory. In fact, at one point the Chicago market was down by 8% compared to last year. In the last few months, however, inventories have climbed 2% to 3%, especially in the downtown area. This is due to some of the new builds that are starting to be delivered to the market. Overall, we need both sellers and buyers. If you have any mortgage questions or you're curious about buying or selling a home, please feel free to reach out to us. We look forward to your calls.

How Much Inventory Do We Have?

How are we doing this spring in terms of inventory? Here’s what you need to know.

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Toward the end of April, we were still dealing with the lowest amount of inventory in our market that we’ve had in the last five to seven years. 

I checked the MLS this morning and we have just over 1,800 condo units in our local downtown Chicago market. The exciting part is that over 485 of those are going to sell every 30 days, which, of course, represents a 3.7 month supply of inventory.

This figure is important because it lets us know exactly where we are in the market and whether it will favor buyers or sellers. If there’s more inventory than demand, then we’re in a buyer’s market. If there’s more demand than there is inventory, then we’re in a seller’s market.

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We are definitely in a seller’s market.

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A typical supply of inventory in a balanced market is six months’ worth. Being that we currently have 3.7 months’ worth, we are definitely in a seller’s market. 

If you have been on the fence about selling your home—whether it’s upsizing or downsizing into a townhome, condo, or another property—please feel free to reach out to me. I’d love to discuss your plans with you.

Questions to Ask Your Lender Before Securing Your Mortgage

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Before you go ahead and sign on the dotted line for a mortgage, there are a few important questions that you should be asking your lender. 

These include questions like, “What is the interest rate on the loan?” and “Is it a fixed mortgage or an adjustable mortgage?” Everything should be spelled out clearly. Good-faith estimates and truth-in-lending forms are gone, and loan estimates and closing disclosure forms are here. They spell all of the information out about the loan. 

Prepayment penalties are not for all mortgages. It depends on the state that you’re in. According to David, he never sees prepayment penalties for the mortgages that he does. He only sees them with commercial lenders.

When you start with your mortgage application, you’ll lock your interest rate in for 30, 45, or 60 days. We can do long-term locks as well up to 180 days. In an environment like this with rapidly rising rates, it makes sense to lock it in now if you know that you’re going to be purchasing a home.

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  It makes sense to lock in a rate now before they go up again.

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If you have any questions about mortgage, interest rates, or buying or selling a home, don’t hesitate to reach out to us and give us a call or send us an email. We look forward to hearing from you soon.

What Should We Expect for the Market in the Year to Come?

Today we have your real estate forecast for 2018. Learn what to expect for the market next year based on trends we’ve noticed this year.

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As we conclude 2017, which has been an excellent year, we wanted to give you a quick market snapshot of what’s to come in 2018.

One of the key driving forces for next year will be in the increase in new construction home sales, which will increase from 1.22 million this year to 1.33 million in 2018. With regards to home sales, they predict a 4.9% increase in the number of homes for sale in terms of average sales price in 2018, as compared to the 6.3% average we’ve seen in 2017.

With the job growth and rate hikes we’ve seen this year, we expect 2018 to be even better.

On the mortgage side, 2017 has been a great year, probably one of the best that we’ve had since the meltdown. With the job growth and rate hikes we’ve seen this year, we expect 2018 to be even better.

Rates are expected to increase next year, in addition to the increase just levied in December. This isn’t a bad thing—it’s a good thing. It means that there’s a lot of expansion in the job market. And though rates are expected to rise at least a couple more times next year, I don’t see that being a problem in terms of the real estate market. The job report that was recently released was phenomenal. Since people have jobs, that means they’re buying houses.

If you have any questions regarding buying or selling real estate, contact me via phone or email. You can also contact David Bowen for any questions about pre-qualifying or pre-approval for a home loan. We’d love to help you out.

What’s Happening in the Chicago Real Estate Market?

The Chicago real estate market remains strong as we head into fall. The steady demand for homes has led to a lack of inventory.

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We’ve got a quick update for you today about the Chicago real estate market, as well as a great mortgage tip from David Bowen.

As we head into the fall season, we are still seeing low inventory in places like Hyde Park and the South Loop. However, this low inventory is more due to the fact that demand is high. The average sale prices in some of these areas are now up over $1 million.

Demand for homes is high in many areas.

If you want to buy a home in one of these highly sought after areas, you can get financing in a few different ways. If the price is below $424,000, you can finance the home with a regular 30-year fixed mortgage. However, that’s not likely. David and Loan Depot offer a jumbo loan, which can cover up to $1.5 million. It requires a 10% down payment, but you won’t have to pay mortgage insurance. They offer this jumbo loan as a 30-year fixed product, which is almost unheard of.

Even though we’re well into fall, the real estate market is still not letting up. It’s been a crazy year out there. If you’re thinking about buying or selling a home in the near future, don’t hesitate to give us a call or send us an email. We would love to help out in any way possible.

Should You Be Worried About the Recent Interest Rate Hike?

Interest rates are on the rise again, but is it really a cause for concern?

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Interest rates are on the rise again and it could have an impact on you if you're thinking of buying and/or selling a home.

Right on schedule, the Federal Reserve raised interest rates mid-June by 0.25% and they're expected to raise them again at least one more time before the end of the year. This means interest rates for homebuyers will go up, but things like car loans and home equity lines of credit will go up as well. Credit card rates will rise, also.

The good news is that the Fed is acting on schedule.

Homebuyers seeking financing will also qualify for a little bit less in terms of purchase price. It won't be a huge impact—depending on your mortgage amount, the monthly cost will increase by about $50. The good takeaway is that the Fed acted on schedule with this increase; when unexpected things start happening with interest rates is when things can get sticky.

As jobs and the market improves, the Fed will raise rates to combat inflation, so it's a good sign for the economy. If you have any questions about interest rates and how they affect you when buying or selling real estate here in the Chicago area, give us a call or send us an email soon. We'd be glad to help.

1st Quarter Chicago Market Update

The Chicago market is still going strong this year, but one big factor has been a challenge across the Chicago area.

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What's been happening in the Chicago market this spring?

The first quarter was a great one with strong sales and prices. In fact, it was the strongest first quarter since 2006.

Interest rates went up very slightly as expected and they're expected to rise twice this year. We think that we'll definitely see at least one rate hike, and possible a second depending on home sales and things like job reports.

The first quarter was a great one with strong sales and prices.

The big factor in our market—and all markets throughout the country—is a shortage of homes for sale. Here in Chicago through the month of March, inventory is actually down 13% compared to this time last year. Many people are holding off on selling their house because they've got a great interest rate on their mortgage and don't see a big benefit in moving.

We also know that only 13% of the first quarter home sales were distressed sales, whereas last year distressed sales made up 22% of sales. That figure has dropped each year since the financial crisis hit, making it harder and harder to find those kinds of deals like foreclosed homes.

If you need to sell your house, now is an outstanding time. Just give us a call or send us an email soon, we'd love to help you!

How Will Rising Interest Rates Affect You?

Interest rates have recently gone up, making homes more expensive for homebuyers. Here’s what this rise in rates means to you and why it’s actually a good thing.

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The Federal Reserve recently announced another interest rate hike. What does that mean for homebuyers in the Chicagoland area?

For one, the cost of money will be a bit higher. It will cost a little more to get your dream home, and your monthly payment will be a little higher. However, this rate increase is due to our improving economy. Job and economic growth are at their highest level since 2008, and the fact that rates are going up is actually a good thing.

Although rates are up, economic growth and job growth are too.

We expect rates to go up at least once more this year. Although this will make homes even more expensive, keep in mind that rates will still be very low, historically speaking.

If you have any questions for us about interest rates or anything else relating to real estate, give us a call or send us an email today. We look forward to hearing from you soon.

What to Expect From the 2017 Real Estate Market

What can you expect from the 2017 real estate market? We’ll go over a few important things about home sales, interest rates, and housing inventory today.

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What can you expect from the 2017 real estate market?

According to the National Association of Realtors, 2017 homebuyers are still very confident in their ability to buy a home. Buyer demand remains strong as well.

In 2016, there were 5.42 million home sales, the highest we’ve seen since 2006 when 6.5 million homes sold. Our market is recovering well. In 2017, we should see 2% growth, or 5.52 million sales.

That said, there are a number of factors that will impact home sales this year.

For instance, there are a couple of things that will help keep the buyers in the market: interest rates and expected job growth. Interest rates are expected to increase, which means buyers will want to purchase before buying a home gets too expensive. That said, we should see a couple million new jobs in the market, which will help buyers tremendously.

Our market is in desperate need of more inventory.

Not only that, millennials are expected to enter the market in a big way this year. Millennials are finally ready to make a home purchase.

One thing our market desperately needs is more inventory. If you’ve been thinking about selling your home, stop kicking tires and enter the market. Now is a great time to put your home on the market.

That said, if interest rates go up more than expected, some sellers may decide to hang onto their homes a little longer. If you refinanced your home recently, you might not want to re-enter the market with a higher interest rate. That could be why inventory remains so low.

If you have any other questions about our current market or about buying or selling a home, give us a call or send us an email. We would be happy to help you!

Important Trends in Chicagoland Real Estate

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Today, David Bowen from Wintrust Mortgage and I will be discussing important trends in the Chicagoland housing market. 2015 was an excellent year for sales and appreciation in our marketplace. 

In fact, we noticed a 6.6% sales increase last year in the nine-county Chicago area. In the metro area, we saw 7.8% sales increase as well. Additionally, in the Chicago suburbs, there was a 9.4% sales increase.

Overall, the median sales price is $210,000. That means price tags for homes locally have increased 8.8%. Can we expect the same trends for 2016? I anticipate we’ll experience a moderate increase between 3.5% and 4%.

As for the mortgage side, interest rates won’t be a problem this year. We anticipate the Federal Reserve will increase rates slowly throughout the entire year. The economy is booming. Unemployment is low. This factor alone won’t hinder housing sales and market growth. We might even experience better market conditions this year, because the economy is doing so well.

If you’re thinking about buying or selling a home in the surrounding area, give me a call or send me an email. I’m happy to answer any questions you have about this topic or anything else related to real estate. Feel free to reach out to David by phone or email for your mortgage needs.