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.

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.

Why Is Housing Inventory an Important Statistic?

As a statistic, housing inventory means the number of homes that are on the market at any given time, and it can determine whether we’re in a buyer’s or seller’s market. 

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When it comes to selling your home, there are some very important statistics that you should know about. One of  those statistics regards housing inventory. 

Housing inventory means the number of homes that are on the market at any given time. In our downtown Chicago market, we currently have 654 active listings. Over 30% of those listings have gone under contract in the last 30 days, which means we have a 3.7-month supply of inventory. 

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Our current housing inventory puts us in a seller’s market.

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What does a normal housing inventory look like? Typically, a six-month supply is considered normal, and that level is enough to supply homes for any buyer. That means our 3.7-month supply puts us in a seller’s market. Whenever inventory is up and demand is low, we’re in a buyer’s market. 

If you have any more questions about housing inventory or you’re thinking of taking advantage of our seller’s market by listing your own home, give me a call or shoot me an email anytime. I’d love to help 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.

Thank You for All of Your 1st Quarter Referrals

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Today we want to thank you for your first quarter referrals and thinking of us for all of your mortgage and real estate needs so far in 2018. This was probably my best first quarter ever, and I couldn’t have done it without you.We have a feeling the rest of 2018 will be just as good as it was last year, so we’re ready to help you with all of your mortgage or real estate needs moving forward. To hear our full message of gratitude, watch our latest video.  

“Thank you so much for thinking of us for your mortgage and real estate needs. 

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