US Home Prices At Record High

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Posted by Park Ridge Real Estate | Posted in Market Stats, Uncategorized | Posted on 28-07-2017

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US Home prices topped a new high in May for the 6th month in a row.  The Standard & Poor’s Core Logic national home price index went up 5.6% in May from their latest report.  We have officially passed the peak from July 2006 by 3.2%.

Seattle. Portland and San Francisco are accountable for much of the increase as there are more rental properties than single family occupancy.  The national average is 64% of owner-occupied homes – San Fran is at 36%, Seattle is at 46% and Portland is at 52%, far below the national average.

For now, it’s still a seller’s market – home are selling within 60 days and many areas are seeing multiple offers.  Quite the change from 10 years ago…

US Home Prices Back Near The 2006 Level

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Posted by Park Ridge Real Estate | Posted in Market Stats, Park Ridge | Posted on 30-11-2016

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According to a private analysis, the US home prices have fully-recovered from the housing bust and Great Recession of the last decade. This is phenomenal news for homeowners. The Standard & Poor’s CoreLogic Case-Shiller national home price index, released today, shows that home prices are slightly above the peak of July, 2006. This is the peak after four years of steady gains and it bodes well for the housing market.

That being said, Real Estate has always been about location; not all cities have recovered fully, but the upward trend shows reason for optimism across the board. Couple the increase in jobs with the historically low mortgage rates and we have a seller’s market. On top of all that, the incoming administration is talking about eliminating or curtailing some of the most restrictive measures put forth in the Dodd Frank act, which has stymied mortgage writer’s abilities to place buyers into their products.

For all of the good news, there are other sides to this boon – for one, inventory is tight, especially at the entry level of the market. This is great for owners in the rental market, but this tends to keep out a lot of first-time-buyers as they are priced out with the quick-moving inventory.

All in all, this is fantastic news for homeowners – the tricky part is getting more renters to make that jump into ownership. This will happen organically as they start to find that renting is more expensive than owning – especially when you consider the tax breaks afforded to homeowners.

If you have any questions about the Park Ridge market, please feel free to contact me for a detailed analysis of your home or prospective move into this area.

U.S. new home sales race to near nine-year high – Reuters

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Posted by Park Ridge Real Estate | Posted in Market Stats, Park Ridge | Posted on 25-08-2016

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By Lucia Mutikani | WASHINGTON

WASHINGTON New U.S. single-family home sales unexpectedly surged in July, reaching their highest level in nearly nine years amid robust demand, brightening the housing market outlook and bolstering views that economic growth will pick up in the third quarter.

Housing market strength should offset some of the drag from manufacturing, with other data on Tuesday showing production at factories remaining constrained by weak orders.

“A very rosy picture is beginning to emerge on the housing market, pointing to sustained buoyancy in the sector’s recovery, which remains one of the few bright spots for the U.S. economy,” said Millan Mulraine, deputy chief economist at TD Securities in New York.

The Commerce Department said new home sales jumped 12.4 percent to a seasonally adjusted annual rate of 654,000 units last month, the highest level since October 2007. It was the fifth straight monthly gain in new home sales.

July’s increase, however, likely exaggerates housing market strength as it has not been matched by robust housing starts.

Still, sales were up 31.3 percent from a year ago.

Economists had forecast single-family home sales, which account for about 9.6 percent of overall home sales, slipping to a rate of 580,000 units last month. July’s surprise increase pushed new home sales well above their second-quarter average, pointing to sustained momentum in the market for new homes.

The gain came mostly from homes not yet started or still under construction, suggesting a rebound in residential construction investment, which was a minor drag on economic growth in the second quarter.

Housing market strength, marked by rising home values which are boosting household wealth, is helping to buoy consumer spending, cushioning the blow to the economy from a downturn in business spending as well as an inventory correction.

Tightening labor market conditions, which are steadily lifting wages, as well as mortgage rates near historic lows are supporting housing. Reports last week showed groundbreaking on single-family housing projects rising to a five-month high in July and sentiment among homebuilders increasing in August.

Robust demand for new homes is boosting homebuilders like Toll Brothers (TOL.N), which on Tuesday reported a rise in revenue for the fourth straight quarter. The luxury homebuilder said it had sold more houses at higher prices.

The solid housing market is also supporting purchases of big-ticket electronics such as home theater systems, fattening profits for companies like Best Buy (BBY.N). The largest U.S. electronics retailer on Tuesday reported a higher-than-expected quarterly profit and raised its earnings outlook.

RAISES NEAR-TERM OUTLOOK

New home sales are likely benefiting from a chronic shortage of previously owned houses available for sale. With sales surging, the inventory of new homes on the market fell to an eight-month low in July. This means builders will need to ramp up construction activity to meet demand.

At July’s sales pace it would take 4.3 months to clear the supply of houses on the market, the fewest since June 2013, and down from 4.9 months in June.

“This marginally raises our near-term outlook for the housing market, as tightness in the new home market suggests further impetus to new construction ahead,” said Andrew Hollenhorst, an economist at Citigroup in New York.

In the wake of the report, the broader PHLX housing index .HGX, which includes builders, building products and mortgage companies, rose 2.07 percent, outperforming the overall U.S. stock market.

Shares in the nation’s largest homebuilder D.R. Horton Inc (DHI.N) rallied 3.43 percent and Lennar Corp (LEN.N) surged 3.89 percent. Toll Brothers vaulted 8.5 percent. The dollar was little changed against a basket of currencies, while prices for U.S. government debt fell.

What does this all mean?  Well, for starters, it means homes are selling briskly and that inventory is down.  It’s a sellers market and has been for a while now.  Real estate, obviously, is a regional market, but we are seeing pre-2006 increases in home values.  Homes in certain areas are appreciating at about 10% near the Park Ridge area.  Even with all the new regulations in place, people are still buying and they are paying more to get what they want.

If you need any assistance with your real estate questions in, and around the Park Ridge, IL area, please call on me – I know the market intimately and will always shoot straight with you.

Good luck!

Real Estate – What to do in a Seller’s Market

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Posted by Park Ridge Real Estate | Posted in Market Stats, Park Ridge, Real Estate Info | Posted on 03-05-2016

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Seller’s Market

There is no doubt that Park Ridge and the surrounding area is seeing a true seller’s market. If you are the seller, this is a great position to be in for many reasons:

  • You will most-likely see multiple offers for your home
  • You can pick the buyer that is most-ready to close
  • You will hopefully get more for your home than you asked for
  • You should be able to sell your home quicker in a seller’s market
  • Real estate inventory levels are low
  • Rent is getting more expensive
  • It’s Real Estate Season

If you are the buyer in a seller’s market, here are some points to consider as you look for your new home:

  • Make sure you are looking at new homes immediately as they come on the market (other shoppers will be doing this)
  • Get Pre-Qualified before looking at any homes
  • Be aggressive with your offer if you find something you like
  • Do not try to over-negotiate with your seller – they may choose another buyer
  • Be ready to move (get your quotes for movers)
  • Don’t settle for a home you don’t want (even if you feel pressured to just buy a home, don’t buy it for that reason)
  • Be flexible with your time if possible (you have to act quickly in a seller’s market)

If you have any questions about how to successfully buy or sell a home in a seller’s market – please feel free to call/email me with your needs.

 

Park Ridge, Illinois Real Estate Statistics & Demographics

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Posted by Park Ridge Real Estate | Posted in Market Stats, Park Ridge | Posted on 01-03-2016

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Current market stats and demographics for Park Ridge:

Current Park Ridge Demographics

market stats 2016

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Graphics and Data courtesy of Trulia

2016 Park Ridge Real Estate Market Forecast

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Posted by Park Ridge Real Estate | Posted in Market Stats, Park Ridge | Posted on 29-12-2015

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Well, like so many years before – 2015 absolutely flew by!  The real estate market saw an encouraging uptick in sales.  Renters are starting to buy as renting is getting to be very pricey in and around our Park Ridge area.  Interest rates have stayed around the high three’s, low fours and this has helped renters get off the fence.

The market looks good for 2016 as well.  We’re not sure what the FED is going to do with the interest rates, but we speculate the rates will stay in the low 4’s.  Now, if there was something we could do about the taxes in the Park Ridge area!  Many REALTORS® also speculate that home prices will be going up at a consistent rate – but nothing excessive like before the crash in 2006.  The surrounding cities and villages of Niles, Mt. Prospect, Deerfield, Northbrook, Prospect Heights, Rosemont, Skokie, Des Plaines, Glenview, Lincolnwood and Morton Grove are all seeing good growth as well.

If you would like a more-detailed market analysis of your home, please feel free to contact me.

Stock Market Woes and Real Estate

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Posted by Park Ridge Real Estate | Posted in Market Stats, Real Estate Info, Uncategorized | Posted on 24-08-2015

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By now, I’m sure you’ve heard about the losses at the NYSE.  What does this mean?  How does this affect me?  What, if anything will happen in Real Estate. because of it?  The short answers – (Hopefully) not much, not much, and not much.

Now, that might seem a little dismissive and perhaps, too flip or succinct a diagnosis, but is it really?  Like everything in life, it’s about timing.  Now, please don’t get me wrong, this will affect a lot of people, but most of those affected are playing the market for a living.  Companies that were hardest hit – Apple, for example – aren’t going anywhere.  They will be here next year and once the market corrects itself, it’ll be like it never happened.

This will also affect anyone that was going to cash out a 401k this week, someone who had their escrow money in a stock account, as well as stall the gains they were most certainly counting on.  But what I’m really trying to say is – don’t freak out!

I empathize with anyone that was financially affected by this, but I’m hopeful that your money will come right back to you if you stay in the market.

It’s too soon to tell if this will affect the Real Estate market – we will see what happens but in the meantime, keep your wits about you and talk to a professional if you need to.

 

Home Sales Break Records for March

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Posted by Park Ridge Real Estate | Posted in Market Stats | Posted on 24-04-2010

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Home sales in the Midwest were up  nearly 20 percent over last year as buyers continued to utilize the taz credit for new homebuyers and existing homeowners.  The tax credit expires at the end of this month and as of now, we have not heard anything about continuing the credit, but we remain hopeful as it has absolutely driven the real estate market up this year.

This is the ninth month in a row that sales are up from last year’s totals.  The increase in sales has put home sales up 39.9% year-to-date. For lofts/condos, sales are up 73% from last year!!

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Park Ridge Real Estate Market Info

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Posted by Park Ridge Real Estate | Posted in Market Stats | Posted on 14-04-2010

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Average price per square foot for Park Ridge IL was $220, a decrease of 17.6% compared to the same period last year. The median sales price for homes in Park Ridge IL for Jan 10 to Mar 10 was $320,000 based on 88 home sales. Compared to the same period one year ago, the median home sales price decreased 10.1%, or $36,000, and the number of home sales increased 72.5%.

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Image via CrunchBase

There are currently 402 resale and new homes in Park Ridge on Trulia, including 146 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Park Ridge IL was $507,826 for the week ending Apr 07, which represents an increase of 1.1%, or $5,481, compared to the prior week.

Obviously home sales are way up and pricing is still extremely attractive. 

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Interest Rates Just Went Up

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Posted by Park Ridge Real Estate | Posted in Market Stats | Posted on 08-04-2010

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This was reported today by the AP:

Federal Home Loan Mortgage Corporation (Freddi...
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Rates for 30-year home loans surged last week, rising to the highest level in eight months due to the improving economy and the end of a government push to keep rates low. The average rate on a 30-year fixed rate mortgage was 5.21 percent this week, up from 5.08 percent a week earlier, Freddie Mac said Thursday. That’s the highest since mid-August, when the average rate was 5.29 percent.

Most REALTORS have been banging the drum for a while about how interest rates will go up eventually and this is a start. Nonetheless, rates in the 5’s are still very low. If you have any interest at all in purchasing real estate, now is still the time. 

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