MRED Blog

REinventing MLS . . .

Buying is Now 37.7% Cheaper Than Renting in the US

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The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 17.4% less expensive in Honolulu (HI), all the way up to 53.2% less expensive in Miami & West Palm Beach (FL), and 37.7% nationwide!

Other interesting findings in the report include:

  • Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
  • Home prices would have to appreciate by a range of over 23% in Honolulu (HI), up to over 45% in Ventura County (CA), to reach the tipping point of renting being less expensive than buying.
  • Nationally, rates would have to reach 9.1%, a 145% increase over today’s average of 3.7%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, meet with a local real estate professional who can help you find your dream home.

Blog Post via KCM Blog

MRED Chicagoland Report for September, 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.

Do You Know the Cost of Renting vs. Buying? [Infographic]

Midwest Real Estate Data (MRED) Has Champaign Taste

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Chicagoland MLS Giant Welcomes Champaign County
as its Newest Association Partner

LISLE, ILLINOIS (October 4, 2016) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced that the Champaign County Association of Realtors® (CCAR) has become the thirteenth Realtor® association to contract for MLS services from MRED.

CCAR is the “Voice for Real Estate” in the Champaign County area of Illinois.  Over 400 CCAR members are engaged in all facets of the real estate industry. Chartered in 1917, CCAR is the leading resource for Realtor® members and an advocate for homeownership and private property rights. CCAR strives to be recognized as a community and education focused resource comprised of ethical real estate professionals.

“I am thrilled that all of the discussions and negotiations have resulted in the partnership of these two great organizations,” said Stefanie Pratt, Immediate Past President of CCAR.  “It is gratifying when hard work results in something so positive for our members.”

“CCAR staff is already working hard at the difficult job of transitioning to a new MLS system,” said Linda Green, CCAR Association Executive.  “We look forward to all of the new functionality and opportunities that are coming to our members when we go live with MRED early in 2017.”

“We are very excited to welcome CCAR as our newest Association partner,” said MRED President and Chief Executive Officer Rebecca Jensen.  “Our staff and leadership look forward to working closely with the CCAR Board and staff to have a smooth transition for CCAR’s members to our MLS system.  I personally want to thank CCAR’s Immediate Past President Stefanie Pratt, Association Executive Linda Green and their Board of Directors, for their forward-thinking vision and leadership.  I appreciate and understand that change is difficult and not always the easiest road taken.  I’m confident that this will prove to be a great decision for all involved.”

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.

Think You Should FSBO? 5 Reasons to Think Again!

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In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. 

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000, while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Blog Post via KCM Blog

Midwest Real Estate Data (MRED) Joins Select Group with Latest RESO Certification

Chicagoland MLS Giant is now Certified at the
Gold Level for RESO’s Web API

RJLISLE, ILLINOIS (September 28, 2016) – Midwest Real Estate Data (MRED), Chicagoland’s multiple listing service (MLS), announced that it has received the Gold Certification for the Real Estate Standard Organization (RESO) Web API (Application Programming Interface).

In computer programming, an application programming interface (API) is a set of subroutine definitions, protocols, and tools for building software and applications. This API will be used as the go-between for the apps and websites that use MRED data.  By implementing the API, MRED’s subscribers apps and websites will be returning “real-time” listing information. Gold Level Certification enables MRED to provide more features and functions that allow technology partners to deliver greater innovation in applications utilized by MRED’s subscribers versus Core Level Certification.

“MRED’s penchant for innovation continues with its implementation of the latest real estate industry standards,” said Jeremy Crawford, Executive Director of RESO. “MRED helps to raise the bar for the entire MLS industry with their Gold Level Certification for the RESO Web API Server.  Their proven and steadfast commitment to RESO standards demonstrates their leadership in helping our industry embrace more innovation to make it remarkably more efficient. The example MRED sets with their forward-thinking is something we hope every MLS emulates.”

“MRED has made a huge commitment to RESO and fully support the great work it is doing,” said MRED President and Chief Executive Officer Rebecca Jensen.  “It was very important to us to attain the Gold Certification.  We will continue our work, in conjunction with RESO and others across the industry, to establish data standards consistent with the best interests of our brokerages and the real estate industry.”

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 7,200 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.

About RESO

The mission of the Real Estate Standards Organization (RESO) is to create and promote the adoption of standards that drive efficiency throughout the real estate industry. RESO incorporated was founded in November 2011, as an independent, not-for-profit trade organization that was previously a section of the National Association of REALTORS®. RESO has more than 500 active members, including NAR, multiple-listing services, real estate associations, brokerages and industry technology providers. For more information, visit http://www.reso.org.