Around this time every year at spring, you begin to notice the increasing amount of For Sale signs going up around your neighborhood and across your city. In the past you may recount seeing a large number of notices of homes for sale. In some areas it seemed like there was a for sale sign up every 5th home. But as the market has changed dramatically after the recession, there are fewer homes for sale across illinois to the point that we are currently in what is called a Buyer’s market. What does that mean for the shaky real estate economy exactly and how does it affect both sellers and buyers? We decided to sit down with the Sherbert Crew of Re/Max Professionals of Bolingbrook for some insight.
Thanks for joining us today. What is the over all report on Illinois and Chicago area real estate?
Stephanie: In the Chicago metro area, home prices rose about 0.8 % in March in comparison with march 2015.
The median home sales price went up about 4%, to $210,000 which compared to March 2015 which was $202,000. Prices of most single-family homes rose more than condos and the median residence for a single family went up 4.2% to $223,000.
On the flip side of that, condo sales prices creeped up about 2.2% at a price of around $185,000.
James: Yeah in Cook country we saw the median price of homes go up 2.9%,Will County had one of the biggest jumps at 6.7% but average sells fell to about 6%. Lake county home prices increased 1.4% and sales volume was up 6%.
What does that translate to for today’s sellers and buyers?
James: Well for one, we are definitely in a seller’s market throughout the Chicago Area. There are fewer homes on the market all around but a large pool of buyers looking to come into the market or upgrade their homes. I personally specialize in Bolingbrook Real Estate and I’m seeing lots of people who would like to sell but simply can’t because they built or purchased their home at the top of the housing bubble back between 2006 and 2008, or refinanced. That’s a huge chunk of homes that can’t be sold because home owners are underwater, meaning they owe more than their home is worth in 2016. With interest rates being as low as they are though, you’ve got a large number of buyers wanting to enter the market but finding themselves without much to choose from.
Stephanie: Or they are finding themselves in multiple offer scenarios which results in spending more than buyers planned on.
Gone are the days of a few years ago of buyers basically being able to steal a home, huh?
James: Oh there are still a few deals out there but they are few and far between. And as buyers understand this, you’ll see home prices across the board increase.
Stephanie: Buyers don’t have the luxury of spending lots of time to ponder a purchase like they could before and they don’t have as much to negotiate with.
So is it a bad time to buy a home in Illinois?
James: Not at all. Interest rates are at the lowest they have been in a very very long time. This just means that if you find the home you truly feel is meant to be yours, you have to come in very strong. In the end, if the home is within your comfort range and your budget, what matters is finding a house you can truly call a home.