April 18, 2017
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We can comfortably consider the first quarter to have been a good start for residential real estate in 2017. There was certainly plenty to worry over when the year began. Aside from new national leadership in Washington, DC, and the policy shifts that can occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and ever-increasing home prices. Nevertheless, sales have held their own in year-over-year comparisons and should improve during the busiest months of the real estate sales cycle.
New Listings in Chicagoland were up 0.5 percent for detached homes and 3.3 percent for attached properties. Listings Under Contract increased 12.9 percent for detached homes and 13.9 percent for attached properties.
The Median Sales Price was up 13.6 percent to $232,800 for detached homes and 5.2 percent to $192,500 for attached properties. Months Supply of Inventory decreased 20.1 percent for detached units and 23.8 percent for attached units.
The U.S. economy has improved for several quarters in a row, which has helped wage growth and retail consumption increase in year-over-year comparisons. Couple that with an unemployment rate that has been holding steady or dropping both nationally and in many localities, and consumer confidence is on the rise. As the economy improves, home sales tend to go up. It isn’t much more complex than that right now. Rising mortgage rates could slow growth eventually, but rate increases should be thought of as little more than a byproduct of a stronger economy and stronger demand.
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.
April 11, 2017
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You asked, we listened! Based on your feedback, some major changes and upgrades have been made to photos and the Private Listing Network (PLN)!
NOTE: Please be aware that with unlimited photos, if you are printing reports, the number of pages of the report will increase. Please use print preview before printing!
Learn More »
Private Listing Network Highlights:
- Search for homes via a map search!
- Create a search and receive email notifications when listings become available
- Create your own custom reports
- Use “Next” and “Previous” to move between listings
- And much more!
Learn More »
Are you experiencing issues or have any questions? You can always contact the MRED Help Desk at 630-955-2755 or firstname.lastname@example.org
April 3, 2017
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A survey by Ipsos found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. There are two major misconceptions that we want to address today.
1. Down Payment
The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 40% of consumers think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.
Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
2. FICO® Scores
The survey also revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgages are much lower.
The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below shows the distribution of FICO® Scores for all loans approved in February.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, sit down with a professional who can help you understand your true options.
Blog post via KCM Blog