This was the topic of discussion today amoungst myself and local mortgage broker. I was actually thinking it was a great post idea. So here I am.... enjoy Lyn's great information on FHA.
Real Estate Market Update - Northwest Suburbs - February 2012
Interest rates are low and housing affordability has been the best in decades and yet I was hoping the market would be ending a little better. FHA buyers will be taking a hit to their pocketbooks in April with higher monthly mortgage insurance costs looming on the horizon. It seems that with each slight lowering of interest rates the banks are elevating the closing costs for buyers to offset that bonus. Makes you wonder who's side they are on? Obviously, their own and not the consumer.
The graphs show that February sales have been up for most towns in our area.
Another good statistic is when the market is steady (or going up) with the number of homes that go under contract each month. Currently we are between 10 to 17%. This is terrific!
The inventory level (absorption rate) has also decreased even through the slower winter months. The current inventory level has been low between 4 to 7 months. This would have been considered a sellers market 'in the good ole' days' of years past.
I have been including the highest sales prices in each category for the month so we can watch for the 2nd tier home sales increase. The market will always recover from the 'bottom up' with the lower sales prices showing the largest number of sales until the 2nd tier breaks free. This will be an indication that the 'move up' buyers have finally been able to take advantage of today's prices and the low interest rates. This will be the next trend in the recovery. So far, not much activity in that upper end.
Single Family Homes February 2012 Total +/- over January 2012
% YOY Change Avg. Sales Price 2012 Avg. Days
28 +27% $238,676 229 $320,000 Elk Grove Village 7
16 +6% $203,237 117 $222,000 Hanover Park 16
27 +58% $124,747 173 $203,000 Hoffman Estates 20
36 +56% $249,194 171 $465,000 Schaumburg 20
36 +50% $237,208 182 $450,000 Streamwood 20
38 -7% $138,637 125 $364,900
2012 YTD Total +/- over January
2012 YTD Total % YOY Change Avg. Sales Price
13 +18% $105,276 134 $250,000 Elk Grove Village 7
15 +36% $72,660 290 $185,000 Hanover Park 12
24 +60% $67,359 115 $150,000 Hoffman Estates 8
24 +20% $75,567 152 $215,000 Schaumburg 39
76 +85% $99,863 158 $280,000 Streamwood 16
28 +64% $116,908 146 $214,990
Average Days on the Market needs no explanation and you can clearly see the extended times are agonizing for sellers. None of our market areas are lower than 3 months. Hopefully we will move out of this now that the winter weather has broken.
I am still optimistic that we are recovering here in our area for 11 months in a row. Month over month we have seen an increase in closings. One of the reasons I show the 'month over month' totals is to show you we truly are having sales increases - it's not just sales hype!
The number of 'pendings' (mentioned above at 10 to 17% of currently listed homes) has also increased but you can't count on all of these making it to a successful close!
Looking for an agent that's really a market expert? Let's get your Northwest Suburban home on the market and priced right to sell!
Is your current agent showing you any of this information?
Do you feel your current agent is 'flying by the seat' of his pants when answering these questions?
Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.
Sources: MRED February Stats 2012
Cindy Edwards- text or call me: 423-677-6677
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My name is Cindy Edwards and I am a Realtor in Tri-Cities Tennessee. We have a very successful Team concept that has something for everyone. If you are looking to buy or sell in Johnson City, Bristol or Kingsport Tennessee, you have made the right stop here! Please visit our website that is about the surrounding area of the Tri-Cities and helps you realize what a fantastic place this area is to live. Tri-Cities is close to some very popular areas and boasts Mountains and lakes!
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