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Monthly Archives: August 2013

NAR’s August Existing Sales Report [Infographic]

Are You Ready for Your IDFPR Compliance Audit?

The Illinois Department of Financial and Professional Regulation is conducting onsite audits to ascertain compliance by Illinois real estate sponsoring brokers to the Illinois Real Estate License Act and Rules and Administrative Rules.

According to Kate Sax, Director of Professional Standards for Mainstreet Organization of REALTORS®, sponsoring brokers will receive a letter from IDFPR in advance of the on-site review of records with a list of items IDFPR will be reviewing during the audit process.

– See more at: http://www.succeedwithmore.com/MOReNow/managing-risk/Pages/Are-You-Ready-for-Your-IDFPR-Compliance-Audit.aspx#sthash.TXsSX77o.H904Z32V.dpuf

The Beat Goes On According to Midwest Real Estate Data (MRED)

July Numbers Consistent With Previous Months, Notable Trends Emerge

LISLE, ILLINOIS (August 20, 2013) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced today that, as in the past few months, the number of sold units remains high (11,970) and the inventory (56,083) and Months’ Supply of Inventory (3.1) numbers are still relatively low based on July, 2013, Chicagoland PMSA statistics.

Some encouraging signs from 2013 are:

  • Since February we have seen the number of traditional sales almost triple.
  • The percentage of traditional sales now equals 70% of all sales.
  • The percentage of distressed sales has plummeted to less than 30% from an early year number of 49%.

This is all good news especially with some of the fears of a potentially significant rise in interest rates that have been projected but have not materialized.

There are some other notable trends in the numbers.  Regarding short sales:

  • Short sales are simply not experiencing the same effects from the housing recovery as the rest of the market.
  • Contract-to-closing time for short sales continues to increase, with the July average at 136 days.  That is a near 50% increase when compared to the 92 day average back in May 2011.
  • When you pair that with the Average Market Time (from listing date to contract date) for short sales of 192 days the average short sale is now taking 328 days from listing to closing.  Yikes!

Foreclosed or lender-owned properties (REOs) continue to sell more quickly than short sales or even traditional sales, coming in with an average market time of 82 days. Also,

  • REOs that sold in less than one month are selling for 105.5% of list price.
  • In other words, a full price offer may not be sufficient to secure a deal on newly listed REOs.

“While the continued high number of sales and low inventory are driving the market, what we’re seeing in the short sale and REO markets is also noteworthy,” said MRED CEO Russ Bergeron.  “Short sales continue to sit on the market getting stale, as an ever-smaller percentage of buyers seem to want to deal with that hassle.  In the meantime, REOs are going like hotcakes, creating the potential for bidding wars.”

“Good examples as to why not all lender-mediated properties are alike.”

About MRED

Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to nearly 40,000 brokers and appraisers and 8,000 offices.  MRED serves Chicago and the surrounding “collar” counties and provides property information encompassing northern Illinois, southern Wisconsin and northwest Indiana.  MRED delivers over twenty products and services to its customers, complementing connectMLS™, the top-rated MLS system in the country per the latest WAV Group MLS Technology Survey.  For more information please visit MREDLLC.com.

Real Estate Prices over 30 Years [Infographic]

A Few Comments on the Impact of Rising Interest Rates

Here are a few interesting comments on how rising interest rates might impact the real estate market as we move forward.

Zillow

Dr. Svenja Gudell, Senior Economist

“As long as mortgage interest rates don’t rise too far and too fast, most markets should be able to absorb these changing dynamics while still remaining healthy.”

Fannie Mae

Doug Duncan, SVP and chief economist at Fannie Mae:

“Consumers have taken the interest rate rise in stride. Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month. These results are consistent with our own analysis of previous housing cycles, which finds that interest rates and home prices are not strongly correlated.”

National Association of Realtors (NAR)

Lawrence Yun, Chief Economist:

“Affordability conditions remain favorable in most of the country, and we’re still dealing with a large pent-up demand. However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.”

Trulia

Jed Kolko, Trulia’s Chief Economist:

“If you were worried about a housing bubble, July’s asking-price slowdown will probably be the best news you’ve heard this year. The asking home price slowdown in July could be the start of the return to normal price gains. The blazing fast price increases we’ve seen in recent months could not last, especially with rising mortgage rates, expanding inventory, and declining investor interest.”

Movoto

David Cross, Chief Writer

“Going forward, we expect prices to continue to move laterally on a month-over-month basis. Higher mortgage rates and increased inventory will keep prices from increasing at the same pace we saw in the first half of the year.”

Article via KCM Blog

Section 8 Housing

It is now a violation of the Cook County Human Rights Ordinance to discriminate in real estate transactions based upon an individual participating in a housing choice voucher program (Section 8).

Want more information? Read the Q&A on IAR’s website http://www.illinoisrealtor.org/Section8.