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Category Archives: Chicagoland Report
MRED Chicagoland Report for March, 2017
Posted by on April 18, 2017
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.
MRED Chicagoland Report for January, 2017
Posted by on February 23, 2017
January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.
New Listings in Chicagoland were down 1.1 percent for detached homes but increased 7.6 percent for attached properties. Listings Under Contract increased 18.6 percent for detached homes and 14.4 percent for attached properties.
The Median Sales Price was up 7.7 percent to $210,000 for detached homes and 7.7 percent to $175,500 for attached properties. Months Supply of Inventory decreased 21.5 percent for detached units and 24.1 percent for attached units.
In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy. FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
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.
MRED Chicagoland Report for December, 2016
Posted by on January 25, 2017
Most of 2016 offered the same monthly housing market highlights. The number of homes for sale was drastically down in year-over-year comparisons, along with days on market and months of supply. Meanwhile, sales and prices were up in most markets. Unemployment rates were low, wages improved and, as the year waned, we completed a contentious presidential election and saw mortgage rates increase, neither of which are expected to have a negative impact on real estate in 2017.
New Listings in Chicagoland were down 9.5 percent for detached homes and 4.7 percent for attached properties. Listings Under Contract increased 9.0 percent for detached homes and 11.1 percent for attached properties.
The Median Sales Price was up 7.5 percent to $215,000 for detached homes and 7.9 percent to $178,000 for attached properties. Months Supply of Inventory decreased 21.2 percent for detached units and 25.5 percent for attached units.
The overwhelming feeling about prospects in residential real estate for the immediate future is optimism. Real estate professionals across the nation are expressing that they are as busy as ever. There are certainly challenges in this market, like continued low inventory and higher competition for those fewer properties, but opportunities abound for hardworking agents and diligent consumers.
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. Additionally, the Q4 2016 report and 2016 Annual reports have also been posted on the Statistics home page. 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 Chicagoland Report for September, 2016
Posted by on October 25, 2016
As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings in Chicagoland were down 0.2 percent for detached homes but increased 4.1 percent for attached properties. Listings Under Contract increased 8.3 percent for detached homes and 11.9 percent for attached properties.
The Median Sales Price was up 6.2 percent to $223,000 for detached homes and 5.4 percent to $184,500 for attached properties. Months Supply of Inventory decreased 19.2 percent for detached units and 22.1 percent for attached units.
In general, today’s demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
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 Chicagoland Report for August, 2016
Posted by on September 21, 2016
Closed sales began to cool for much of the country last month, and conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.
New Listings in Chicagoland were down 0.6 percent for detached homes and up 3.2 percent for attached properties. Listings Under Contract were up 13.7 percent for detached homes and 11.1 percent for attached properties.
The Median Sales Price was up 7.7 percent to $237,000 for detached homes and 1.1 percent to $188,000 for attached properties. Months Supply of Inventory decreased 21.4 percent for detached units and 23.4 percent for attached units.
As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level of activity is in multifamily rentals.
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 Chicagoland Report for July, 2016
Posted by on August 16, 2016
Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
New Listings in Chicagoland were down 7.0 percent for detached homes and 3.1 percent for attached properties. Listings Under Contract increased 8.5 percent for detached homes and 4.3 percent for attached properties.
The Median Sales Price was up 6.1 percent to $244,000 for detached homes and 2.6 percent to $195,000 for attached properties. Months Supply of Inventory decreased 20.8 percent for detached units and 24.2 percent for attached units.
Low housing supply has already prevented an outright national boon in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. The issue is not purchasing power. Many areas are falling behind last year’s closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.
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.
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