It’s a Seller’s Market

KCM supply

Nationally, the housing inventory is down 0.5% from last year (we have a 4.6 month supply). Mortgage interest rates are still under 4%, and Fannie and Freddie just released some new programs for down payments as low as 3%. What does this mean? If you are thinking of selling your home, please contact me, as there is a good chance there is a buyer out there waiting to buy it!

Average Sales Prices are UP!

 

The Graph below shows us that Lombard, Villa Park, and Elmhurst are all experiencing higher average sales prices (for detached single family homes), and Villa Park has risen the fastest, making the largest gain in the past three years.

 

 

Why Use An Agent?

Selling Your Home? The Importance of Using an Agent

by on March 2, 2015 in For Sellers, Move-Up Buyers

Selling Your Home? The Importance of Using an Agent | Keeping Current Matters

When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold.

In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past two years, 92% of all buyers have used the internet in their home search according to the National Association of Realtors’ most recent Profile of Home Buyers & Sellers.

However, the report also revealed that for the second year in a row 96% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their home directly from a seller whom the buyer didn’t know.

Buyers search for a home online but then depend on an agent to find the actual home they will buy (53%) or negotiate the terms of the sale & price (31%) or understand the process (63%).

Stephen Phillips, the Chief Operating Officer for HSF Affiliates LLC, put it best:

“Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.

The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots”. This is obvious as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

**If you are curious about your home’s worth, please contact me for a complimentary CMA, or refer me to someone who is considering selling their home.**

~ Jeanne

Consumer Confidence at Highest Level in Over a Decade

Feeling like things are getting a little better?  Read on…


Consumer Confidence at Highest Level in Over a DecadePosted: 10 Feb 2015 04:00 AM PST

Consumer Confidence at Highest Level in Over a Decade | Keeping Current Matters
Two recently released reports reveal that the American public is starting to feel much better about the U.S. economy. The University of Michigan’s Surveys of Consumers showed that:

“Consumer optimism reached the highest level in the past decade in the January 2015 survey…Consumers judged prospects for the national economy as the best in a decade, with half of all consumers expecting the economic expansion will continue for another five years. The anticipated strength in the overall economy has been accompanied by more favorable income and employment expectations.”

Here is a chart showing results over the last decade:

Consumer Optimism | Keeping Current Matters As all consumers are feeling more optimistic, more young adults are moving out of their parents’ basements and into a residence of their own. The recent Census report shows that new household formations skyrocketed in 2014. Below is a chart showing the historical significance of the numbers:

Household Formations | Keeping Current Matters

Bottom Line

The economy is definitely improving and, more importantly, the American consumer is beginning to feel much more confident. This should lead to a very robust real estate market in 2015.

Courtesy of the KCM BLOG

IT’S TIME TO BUY A HOME!

In the past month four different respected financial resources said the same thing:

IT’S TIME TO BUY A HOME!

The four are The Wall Street Journal, Forbes Magazine, JP Morgan Market Insights and MarketWatch.com

Monday, we gave you the links to four different articles that came to the same conclusion: it’s time to buy a home. Today, we want to take a closer look at one of the sources, the JP Morgan’s Market Insights report. Right from the beginning, the paper identifies the greatest challenge in today’s housing market: consumer emotion. They attempt to overcome that emotion with logical reasons why now is the time to buy a home. They break it down to the following.

Price-to-Income Ratio

One measure of housing values is the ratio of personal income to home prices. The report explains where we are today:

“Since 1966, the median price of an existing single family home in the U.S. has varied between 150% and 251% of personal income per household. However, roughly three-quarters of the time it has been in a relatively narrow band between 185% and 230%. In September 2011, the ratio was just 153%, implying that to get back to an average price to income ratio, home prices would have to rise by about 27%.”

Current Mortgage Interest Rates 

With current 30 year mortgage rates, housing payments are at historic lows as compared to personal income.

“During the week of October 7, Freddie Mac reported that mortgage rates had fallen to an average annual level of 3.94%. Assuming the use of a fixed rate mortgage with 20% down, this would make the median mortgage payment on a single family existing home just 6.9% of per household personal income, compared with an average of 14.4% since 1966.” 

Monthly Rent vs. Monthly Mortgage Payment 

Is it less expensive to own a home or rent a home? The answer to this question helps families make the decision whether or not to buy a home. The report explains:

“By the third quarter of this year, we estimate that the implied median mortgage payment had fallen to just 78% of the median asking rent…”  

Bottom Line

The paper comes to the conclusion that now is the time to buy.

“The numbers on housing have an important message for American families today, and particularly younger families setting out on life’s great adventure: Five years ago, at the peak of the home-buying euphoria, it was emphatically a time to rent. Today, when home ownership is depreciated more than ever before, the numbers tell us it is a time to buy.”

I agree.

courtesy of the KCM blog

 

REAL ESTATE IS STILL THE BEST LONG TERM INVESTMENT

BELOW IS A STARTLING GRAPH!  IT DETAILS AN INVESTMENT FROM JANUARY 2001 TO NOVEMBER 2011. 

THIS IS THE TIME TO BUY!!
 

Return on Investment Since 2000

COURTESY OF THE KCM BLOG.

Jeanne Jordan

4th Straight month-over-month home price increases

As reported by the Chicago Tribune this week, Chicago area home prices rose for the fourth consecutive month in August – according to the S&P/Case-Shiller home price index.  Chicago area home prices rose 1.4% in August. Although it is still down from August of 2010 by 5.8% – the month-over-month increase for a fourth month in a row could be a strong indication of improvement.

Jeanne Jordan, CNC, Realtor