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Monthly Archives: June 2016

BREXIT: What’s the FIXIT for U.S. Home Buyers and Sellers?

Brexit-KCM2

Now that much of the dust has settled and the panic has waned, let’s take a look at what impact Britain’s exit from the European Union may have on the U.S. housing market.

The most immediate impact of Brexit will be on mortgage interest rates. Interest rates have remained at historic lows for the last several years. Contrary to what many experts believed, rates have remained low throughout the first half of 2016.

Possible impact of Brexit on mortgage rates?

In a recent article, the Washington Post explained:

“Brexit has spawned the recent bout of volatility in global financial markets. That has anxious investors scurrying for safety — and few assets are safer than U.S. Treasuries. High demand for government debt pulls down interest rates.

That all translates into ultra-low mortgage rates for American households. And with Britain voting for Brexit, they could go even lower.”

However, the lower rates caused by Brexit may be short lived as Trulia Chief Economist Ralph McLaughlin pointed out in a recent post:

“While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.”

Bottom Line

Rates are already at historic lows. The UK’s exit from the EU almost certainly guarantees they will remain low (and possibly go lower) over the next few months. If you were thinking of buying your first home or trading up to the house of your dreams, this may be the time to act. The cost of money may never be better for a potential buyer.

Blog Post via KCM Blog

5 Reasons to Sell This Summer

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As the temperature rises, buyers are coming out ready to purchase their dream homes. The summer is a great time to list your home for sale. Here are five reasons why:

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market at 4.7-months.

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this summer.

Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae just announced that they anticipate an acceleration in home sales that will surpass 2007’s pace by late summer. As the market heats up, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler.

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to increase by nearly a full percentage point in the next 12 months.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Blog Post via KCM Blog

Thinking You Should FSBO? Think Again [Infographic]

MRED Chicagoland Report for May 2016

We are in the thick of an exciting period of home buying and selling, often with quick multiple offers that are near, at or even above asking price, depending on the factors of the home and submarket in question. It was widely predicted that we would see healthy sales activity during the second quarter of 2016, and the market has not disappointed.

New Listings in Chicagoland were up 1.1 percent for detached homes but decreased 1.3 percent for attached properties. Listings Under Contract increased 18.2 percent for detached homes and 8.8 percent for attached properties.

The Median Sales Price was up 7.1 percent to $237,000 for detached homes and 3.2 percent to $195,000 for attached properties. Months Supply of Inventory decreased 22.3 percent for detached units and 28.0 percent for attached units.

Although inventory is still being stretched thin in many areas, low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. How long that can continue without fresh supply remains an important question, but conditions are seemingly good enough for serious buyers. With the current slow state of new construction for non-rental households, the road ahead could be tricky if demand remains high.

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.

Midwest Real Estate Data (MRED) Welcomes Art Carter as its Newest Board Member

CRMLS Chief Executive Officer Joins Chicagoland MLS Giant as a Strategic Manager

LISLE, ILLINOIS (June 14, 2016) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced that Art Carter, Chief Executive Officer of the California Regional Multiple Listing Service (CRMLS), has been elected to MRED’s Board as its new Strategic Manager.

MRED created the position of Strategic Manager, to be filled by up to two individuals at the discretion of and election by MRED’s Board members.  Strategic Managers are invited onto the Board because of their expertise and participate on an advisory basis.  Their input is invited to enhance the ability of MRED’s leadership to make the best decisions and serve their real estate professionals in the most effective manner.

As CEO, Mr. Carter oversees the strategic direction of CRMLS.  With more than 80,000 agents, it is the MLS serving the largest number of real estate professionals in the country, encompassing thirty-six (36) REALTOR® associations across California.  Mr. Carter has been CEO of CRMLS since 2005, and under his leadership it has successfully merged with three other MLSs, obtaining over 40,000 new members.  Mr. Carter is one of Inman News’ 100 Most Influential Real Estate Leaders and one of the Top 20 Association/MLS Executives in the Swanepoel Power 200.  In 2012, he was inducted into the Dr. Almon R. (Bud) Smith, RCE, AE Leadership Society in recognition of this dedicated service and commitment to advancing the REALTOR® organization and the Association Management profession.  A Past President of the Council of Multiple Listing Services (CMLS), he is currently serving as the Chair of the Real Estate Standards Organization (RESO).

“MRED is a powerhouse in the MLS industry,” said Mr. Carter.  “I look forward to joining the leadership of such a distinguished organization.  It is more important than ever for the industry to work together, and my new role will enable two of the largest MLSs in the country to collaborate at the highest level.“

“Art Carter is one of the most respected voices in our industry,” said MRED President and Chief Executive Officer Rebecca Jensen.  “I speak for MRED’s Board and myself when I state how fortunate we feel to have Art join our Board.  His broad industry experience and noteworthy accomplishments will be invaluable to MRED as we address the many challenges ahead.”

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 three 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.

Home Prices Up 5.67% Across The Country! [Infographic]