9 Facts You Should Know about Today’s Illinois Real Estate Markets

Think locally and long-term and do your homework.

1. Grab a low interest rate while it’s still here.

Mortgage interest rates remain at historic lows, but they are on the rise. A quarter percent change in the interest rate can mean tens of thousands of dollars in costs over a 30-year mortgage. For example, an increase from 5 to 6 percent on a 30-year $200,000 loan can change the monthly payment of principal and interest by $125, an increase of 11.6 percent.

2. Today’s market offers great opportunities for first-time and trade-up buyers.

If you’ve been thinking about buying your first home, a move-up home or second home—or find you have to relocate—current inventory levels plus historically low interest rates and affordable prices make this an excellent buying opportunity.

3. It pays to own versus rent!

A typical homeowner’s net worth is 49 times that of a renter’s, according to the National Association of REALTORS® calculations using statistics from the Federal Reserve Board. Owning a home provides both financial equity and tax benefits over time, plus important social benefits such as shelter, security and independence.

4. Housing is a good long-term investment!

Owning a home is how many families begin to accumulate wealth. Given the leverage you get in purchasing a home, the average return on a 5% down payment over 10 years is usually three to five times greater than stock market returns. And you can’t live in a stock! In Illinois the median price in 2009 was 5.9% higher than it was 10 years earlier in 1999.

5. Sellers can recoup on the buy side.

To sell quickly in today’s market make sure your home carries a compelling price, not just a comparable one. What a seller may lose on the sell side can be more than recovered on the buy side.

6. The economy is on the upswing.

Recent economic indicators suggest the worst is over for the U.S. economy including an uptick in consumer confidence, employers adding jobs and a stabilizing housing market. Two-thirds of respondents to a recent Fannie Mae Housing Survey said now is a good time to buy a home; 8 in 10 said homeownership is important to the economy.

7. Safe and affordable mortgages are available…even for people with less-than-perfect credit.

A safe and affordable mortgage backed by the Federal Housing Administration (www.FHA.gov or www.HUD.gov) can be the answer for first-time buyers who have a hard time getting financing and enough money for the down payment. And the Illinois Housing Development Authority’s HOME START program (www.IHDA.org) offers down payment assistance.

8. Getting help from an Illinois REALTOR® is a smart financial decision.

It has never been more important to work with a REALTOR®, the local market professional, to properly gauge neighborhood conditions. Some markets have two levels of pricing—distressed sales and traditional sales. REALTORS® can help both buyers and sellers navigate today’s complex market conditions.

9. Current market conditions won’t last long.

In Illinois sales volumes are on the rebound. As sales increase, inventory levels will decrease and home prices will begin to rise. It’s the basic law of supply and demand. Buy now for the long-term while you have the buyer advantage.

Every market is different…
If you’re a buyer, this market’s for you. With record-low interest rates, ample supply of homes and more affordable prices, this may be the best buying opportunity in years!

Rely on the expertise of a REALTOR®…
If you need to sell, be patient and price your home correctly. Wise buyers and sellers get the facts about their market and seek the counsel of a qualified real estate professional—a REALTOR®—to guide them through the complex process of buying and selling a home. 

You don’t have to go it alone.

Download the "9 Facts" brochure.

Source:  IlliniosRealtor.org