About Stephanie Sievers

Stephanie Sievers is Senior Editor for the Illinois REALTORS®.

Morning Minute: Low mortgage rates hold steady this week

Homebuyers are finding that year-to-date low mortgage rates are continuing to hold steady, Freddie Mac reported this week. A 30-year, fixed-rate mortgage averaged 3.90 percent and the 15-year, fixed-rate mortgage averaged 3.17 percent this week. Read more from Freddie Mac.

In other headlines:

New-Home Sales Rise in May as Prices Hit Record Level – Wall Street Journal

Realtors® Highlight Flood Insurance Concerns as House Committee Finalizes Key Markup – National Association of REALTORS®

Illinois housing market makes gains in May with higher home sales and prices

Statewide home sales picked up in May and properties sold quickly even as median prices tracked higher than a year ago, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in May 2017 totaled 17,077 homes sold, up 3.8 percent from 16,450 in May 2016.

The statewide median price in May was $209,000, up 8.3 percent from May 2016, when the median price was $193,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Buyers are running headlong into a tight market, with nearly 10,000 fewer homes on the market statewide than there were in May 2016,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker The Real Estate Group in Orland Hills. “Rising prices show sellers are being rewarded for listing in a market that in many areas has been marked by multiple offer situations.”

The time it took to sell a home in May averaged 52 days, down from 59 days a year ago. Available housing inventory totaled 56,535 homes for sale, a 14.9 percent decline from May 2016 when there were 66,424 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.01 percent in May 2017, a decrease from 4.05 percent the previous month, according to the Federal Home Loan Mortgage Corp. In May 2016 it averaged 3.60 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in May 2017 totaled 12,491 homes sold, up 5.1 percent from May 2016 sales of 11,884 homes. The median price in May 2017 was $246,900 in the Chicago PMSA, an increase of 5.6 percent from $233,900 in May 2016.

“The market appears to be in a “wait and see” mode in both Illinois and Chicago” said Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois.  “The state’s economy has stuttered and the fiscal cloud hanging over the state has seen enhanced net out-migration that has contributed to a dampening of demand.”

According to the data, fifty-four (54) Illinois counties reported sales gains for May 2017 over previous-year numbers, including LaSalle County, up 23.8 percent with 125 units sold; Kendall County, up 13.6 percent with 318 units sold; Will County, up 8.8 percent with 1,131 units sold; and Sangamon County, up 3.3 percent with 311 units sold.  Fifty-three (53) counties showed year-over-year median price increases including DuPage County, up 8.9 percent to $280,000; Tazewell County, up 8.0 percent to $135,000; and Cook County, up 5.3 percent to $258,000.

The city of Chicago saw a 0.2 percent year-over-year home sales decline in May 2017 with 2,973 sales, down from 2,980 in May 2016. The median price of a home in the city of Chicago in May 2017 was $306,750, up 5.5 percent compared to May 2016 when it was $290,750.
“We’re in an interesting, sophisticated market at present, wherein inventory is restricting what’s available for those who are looking to buy,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Sellers are having to price their properties appropriately, as educated buyers are prepared to be flexible on their wants and needs in a new home or wait for the perfect home to come on the market and pay accordingly.”

Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of June 7, 2017 for the period May 1 through May 31, 2017. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Illinois REALTORS® is a voluntary trade association whose more than 44,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.

Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtors.org/marketstats.

Illinois REALTORS® advocacy provides recap of recent efforts and successes

(l to r) Director of Legislative and Political Affairs Julie Sullivan, Member Involvement Group Chair Ginger Sreenan, Senior Vice President of Governmental Affairs Greg St. Aubin, and Jeff Baker and Jim Morphew with Sorling Northrup Attorneys

Despite the ongoing lack of a state budget or much political consensus, Illinois REALTORS® and their lobbying efforts can be counted on to fight for the perennial, core issues that are important to the industry and private property owners.

“We’ve still got our 50 or 60 key bills that we’re lobbying year in and year out,” said Illinois REALTORS® Senior Vice President of Governmental Affairs Greg St. Aubin. “It would be nice if we could fix the big picture issues, but that’s not primarily what we do.”

During the Public Policy and Governmental Affairs Member Involvement Group meeting at this week’s Illinois REALTORS® Business Meetings, the association’s state and local lobbying teams recapped their recent legislative and advocacy efforts.

Some of the highlights included:

  • Successfully opposed Home Rule pushes in several Illinois communities
  • Worked with legislators to improve legislation to eliminate REALTOR® concerns
  • Lobbied against bills and measures that would be detrimental (such as fire sprinkler mandates, changing existing rent control measures and more).

 

 

 

 

Morning Minute: Mortgage rates hit 2017 low, Freddie Mac reports

Image: Bigstock

Mortgage interest rates fell below 4 percent this week and marked the lowest levels so far this year, Freddie Mac reported today.

A 30-year, fixed-rate mortgage averaged 3.95 percent while the 15-year, fixed-rate mortgage dropped to 3.19 percent. Read more from Freddie Mac.

In other headlines:

Existing-Home Sales Slip 2.3 Percent in April; Days on Market Falls to Under a Month – National Association of REALTORS®

Opinion: 9 signs the housing market will only get hotter in 2017 – MarketWatch

Illinois home prices increase in April; Sales lower amid tight inventory

Homes sold faster and prices rose, but home sales slowed in April with seasonally low inventory levels, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in April 2017 totaled 13,958 homes sold, down 3.4 percent from 14,453 in April 2016.

The statewide median price in April was $200,000, up 7.5 percent from April 2016, when the median price was $186,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Sellers flooded the market in March, and as a result inventories were struggling to keep pace with demand in April,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker The Real Estate Group in Orland Hills. “It’s clear from the relatively short average time to sell that buyers really do want to find a home. The problem is they are having to work much harder to find one that meets their criteria due to a shortage of options.”

The time it took to sell a home in April averaged 61 days, down from 68 days a year ago. Available housing inventory totaled 54,666 homes for sale, a 15.3 percent decline from April 2016 when there were 64,554 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 4.05 percent in April 2017, a decrease from 4.20 percent the previous month, according to the Federal Home Loan Mortgage Corp. In April 2016 it averaged 3.60 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in April 2017 totaled 10,157 homes sold, down 2.3 percent from April 2016 sales of 10,397 homes. The median price in April 2017 was $242,000 in the Chicago PMSA, an increase of 5.2 percent from $230,000 in April 2016.

“While sales will continue the usual early summer upward growth, there are some sharp differences in the forecasts for median prices” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois.  “The forecasts for median price indicate continued positive changes, but the REAL Housing Price Index (HPI), which compares specific housing characteristics, suggests declines and may also be reflecting the employment losses in the state over the past two months.”

According to the data, thirty-four (34) Illinois counties reported sales gains for April 2017 over previous-year numbers, including Madison County, up 11.0 percent with 353 units sold; Rock Island County, up 1.3 percent with 153 units sold; and Kane County, up 0.2 percent with 662 units sold. Fifty-four (54) counties showed year-over-year median price increases including Will County, up 12.2 percent to $218,700; Winnebago County, up 8.5 percent to $108,450; and Cook County, up 5.5 percent to $253,000.

The city of Chicago saw a 4.4 percent year-over-year home sales decline in April 2017 with 2,586 sales, down from 2,706 in April 2016. The median price of a home in the city of Chicago in April 2017 was $297,150, up 3.9 percent compared to April 2016 when it was $286,000.

“With the spring market underway, buyer demand has not abated in the least,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Rather, increased competition for homes that are priced well and move-in ready will continue to drive prices upward. Both motivated sellers and buyers should be prepared for these conditions to continue in the coming months.”

Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of May 7, 2017 for the period April 1 through April 30, 2017. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Illinois REALTORS® is a voluntary trade association whose more than 44,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.

Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtors.org/marketstats.