After a flat spring market, what’s in store for Northern Illinois for the rest of 2011? There are some factors that will be starting to influence prices and activity in the region beginning now – the most important being the rate of new foreclosures. Recent statistics show we’re currently at a 44 month low for new foreclosure filings. Also, the “shadow inventory” that was the big worry this spring has yet to materialize and many now believe that it was largely hype. As you can see from the graph, our downward slide in median price bottomed in May and since then we’ve seen things move up a bit. I would expect that to continue through this fall with perhaps a leveling off during the winter months. It remains to be seen what the current turmoil with the financial markets and uncertainty with Europe and the threat of a double-dip recession will do, if anything. I honestly don’t attribute our improvements since May to an increase in the number of new buyers – more of a combination of pent-up demand, fewer foreclosures and time of the year. There are lots of buyers “bottom shopping” this market – snatching up any juicy deals that come through. That’s causing an interesting situation where homes at certain price points are selling in days with multiple offers while others sit un-touched. Often the foreclosures in this market are garnering a lot of attention because they represent a quick purchase opportunity at great prices.Continue reading →
For many buyers, this has been the big question of the past 5 years – when is the right time to buy? We can honestly say the market has not yet hit bottom and it’s not expected to before the end of the year. So the obvious answer is “no”, right? Wrong! There are several factors involved that really should get you thinking about getting ready to purchase soon.
#1 – Real Estate is Unique – I’ve heard a lot of buyers make the statement that they’re going to wait until the absolute bottom before making a purchase. The issue is, buying a home isn’t like buying 100 shares of AT&T or pork bellies or oil futures. You can’t go to your broker and say, “I’d like to place a limit order to purchase a 4BR/2.1BA home with a big deck, corner lot and stainless steel appliances in the subdivision down the street for $120,000”. It doesn’t work that way. It looks pretty funny on paper and seems obvious, yet, this is the way some buyers are looking at the real estate market. If you’re really trying to find not just a good deal but a home to be happy with, you’re going to want to start looking when the market is CLOSE to the bottom, not AT OR AFTER the bottom. Besides, the bottom in one niche may not be the bottom in another because when it all comes down to it, we’re dealing with unique items and unique locations.
#2 – Qualified Residential Mortgages – despite pressure from the NAR and other groups, there will likely be some type of legislation passed regarding Qualified Residential Mortgages. In a nutshell, lenders are required to keep 5% of the loans they sell – they’re no longer able to package 100% of the loans they sell into securities, take a profit then make someone else responsible for the outstanding debt. The exclusion to this rule are “Qualified Residential Mortgages” (QRMs).Continue reading →
The S&P/Case Shiller index released yesterday, September 29 is a major indicator of national and regional home price movement. The new values for August displays the 6th consecutive month of improvment in home prices across the country from a low … Continue reading →
Wow, a lot has happened since I’ve had a chance to post. First a few updates: 2009 has been an interesting year. There have been ups and downs in the real estate market just like with everything else. We started … Continue reading →
With all of the homes available in Illinois, it’s really easy for home buyers to get burnout from looking at too many homes. Learn how to find the perfect home by limiting your initial choices.Continue reading →
Home buyers across Illinois are wondering if the real estate market has hit the bottom. Let’s take a look at some of the factors involved in our Illinois real estate market.Continue reading →