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Monthly Archives: December 2015

MRED Chicagoland Report for November, 2015

Residential real estate is experiencing its best year since the recession. Housing demand is healthy, and that is expected to continue until the end of the year. Home sales are actually set to have their best national showing since 2006. More of the same is anticipated in 2016, but inventory and affordability challenges coupled with mortgage rate increases will likely keep any sort of monster growth in check. This should be a good thing for keeping home prices from increasing too rapidly to maintain economic stability.

New Listings in Chicagoland were down 0.4 percent for detached homes but increased 0.4 percent for attached properties. Listings Under Contract increased 22.8 percent for detached homes and 17.9 percent for attached properties.

The Median Sales Price was up 8.1 percent to $200,000 for detached homes and 8.3 percent to $166,500 for attached properties. Months Supply of Inventory decreased 22.3 percent for detached units and 21.9 percent for attached units.

Unemployment rates across the nation changed little last month, which bodes well for an increase in buying activity. The national jobless rate was 5.0 percent in October, which was 0.7 percent lower than the year prior. Although housing and employment data are quite positive at this juncture, it is still certainly possible for listings and sales to be down in year-over-year comparisons. Bad weather and the mix of housing available to buyers tend to have a greater effect on trends at the end of the year than during the midsummer months.

MRED real estate professionals can log into MREDLLC.com and click on the Statistics tab to get the latest Lender Mediated and Monthly Market Indicators Reports.  You can also click on the Local Market Updates choice under the Statistics tab and use our Interactive Market Analytics map for the latest local market metrics.

Any questions?  Please contact MRED’s Help Desk at 630-955-2755 or help.desk@MREDLLC.com.

MRED President/CEO Rebecca Jensen Honored with WCR Chicago’s Elevate Award

Leader of MLS Giant Recognized for Her Leadership and “Breaking Glass Ceilings”

RJLISLE, ILLINOIS (December 17, 2015) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced that its President/Chief Executive Officer Rebecca Jensen has been awarded the Women’s Council of Realtors® (WCR) Chicago’s Elevate Award, which recognizes an individual or company that promotes and supports the advancement of women in real estate.

WCR Chicago chose to recognize Ms. Jensen for her great accomplishments in the MLS industry and the wonderful example she has set for women in real estate.

Ms. Jensen arrived at MRED on March 2, 2015. She has worked in the MLS industry since 1998, and for the eight years before MRED she was the CEO of Utah’s regional MLS, UtahRealEstate.com. She is a member of the Executive Committee for the COVE MLS group and the MLS Executive Advisory Board at Realtor.com. Ms. Jensen also serves as Secretary for the Real Estate Standards Organization (RESO) and on the Broker Public Portal (BPP) Board of Managers. Ms. Jensen is one of the Swanepoel 200 Most Powerful People in Residential Real Estate and a Utah Business Magazine Forty Under 40 Honoree. She has also been recognized as a 2015 Rising Star by HousingWire Magazine.

“It was an honor to present the Elevate Award to the President/Chief Executive Officer of MRED,” said Sarah Ware, 2016 WCR Chicago President and Broker/Owner of Ware Realty Group. “Although there are as not as many women leaders in our industry as we would like, we are making great strides to level the playing field. This also speaks to the core mission of Women’s Council of Realtors ‘advancing women as professionals and leaders in business, the industry and the communities we serve.’ Congratulations again to Rebecca”

“The Chicago Chapter of WCR has recognized the amazing ability that Rebecca has to inspire greatness in others,” said Jeff Gregory, MRED Chairman of the Board and Broker Owner of Realty Executives Success. “She is truly a leader that others want to follow. What she has done and continues to do in the real estate industry will impress and inspire others — for years to come.”

“I cannot express how honored I am to receive the Elevate Award,” said Jensen. “I have been a strong supporter of WCR throughout my professional career, and respect the organization’s strong commitment to education and the elevation of women within our industry. I am flattered to join the list of successful individuals and companies that have been the previous recipients of this prestigious honor.”

About MRED

Midwest Real Estate Data (MRED) is the real estate data aggregator and distributor providing the Chicagoland multiple listing service (MLS) to more than 40,000 brokers and appraisers and nearly 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 for two years running according to the WAV Group MLS Technology Survey. MRED is the 2013 Inman News Most Innovative MLS/Real Estate Trade Association, and for five consecutive years the MRED Help Desk has been identified as one of the best small business centers in the United States and Canada by BenchmarkPortal. For more information please visit MREDLLC.com.

Prices & Mortgage Rates Going Up in 2016

Prices and Mortgage Rates Going Up in 2016 | Keeping Current Matters

The monthly mortgage payment on a home is determined by two elements: the price of the house and the interest rate you pay on your mortgage. Recently released reports are revealing that the experts expect both elements to increase in 2016.

HOME PRICES

CoreLogic has projected a nationwide 5.2% home value appreciation for the next twelve months. Here is their breakdown by state:

Pricing Forecast | Keeping Current Matters

MORTGAGE INTEREST RATES

All four of the entities that provide projections on mortgage interest rates agree: they’re going up in 2016. Here are the predictions over the next four quarters:

Interest Rates | Keeping Current Matters

Bottom Line

With both home values and interest rates projected to increase over the next twelve months, buying (or moving-up), sooner rather than later, makes sense.

Blog post via KCM Blog

Rent vs. Buy: Either Way You’re Paying A Mortgage

Rent vs. Buy: Either Way You're Paying A Mortgage | Keeping Current Matters

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

Increasing Gap in Family Wealth | Keeping Current Matters

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

Blog post via KCM Blog

Existing Home Sales Up 3.9% [Infographic]

MRED Chicagoland Report for October, 2015

Transitory periods in the market are common this time of year, and after a persistent period of steady year-over-year climbs in sales metrics, recent low national numbers have not fulfilled what many predicted. But on a positive note, jobless claims have also been at low levels, coming in as the lowest number since 1973. As always, every market and situation is unique, so some numbers seen in national trends may not always line up with local markets.

New Listings in Chicagoland were down 1.4 percent for detached homes and 1.2 percent for attached properties. Listings Under Contract increased 15.3 percent for detached homes and 14.9 percent for attached properties.

The Median Sales Price was up 6.8 percent to $203,015 for detached homes and 6.4 percent to $167,000 for attached properties. Months Supply of Inventory decreased 20.0 percent for detached units and 19.5 percent for attached units.

Interest rates are an area to pay attention to as rate hikes are widely expected before the year ends. The Federal Reserve Bank has skipped two opportunities to raise rates this fall, but the final meeting in December will likely include a minor rate hike. Although we are headed into a slower time of year, as housing activity goes, there are still many nuggets of optimism to mine from monthly figures.

MRED real estate professionals can log into MREDLLC.com and click on the Statistics tab to get the latest Lender Mediated and Monthly Market Indicators Reports.  You can also click on the Local Market Updates choice under the Statistics tab and use our Interactive Market Analytics map for the latest local market metrics.

Any questions?  Please contact MRED’s Help Desk at 630-955-2755 or help.desk@MREDLLC.com.