Illinois REALTORS® offers housing ideas at Grundy County growth conference

Illinois REALTORS® Sharon Gorrell addressed concerns about housing supply and affordability at the Grundy County Community Foundation’s annual Growth Conference on Dec. 1 in Morris.

Gorrell

Gorrell and other expert panelists talked about jobs, housing and roads addressing the theme, “2027: What will Grundy County look like in 10 years?”

“There is a lot of discussion around the influx of intermodal and freight warehousing,” said Member Outreach Manager and Local Governmental Affairs Director Gideon Blustein, who represents the area for the Three Rivers Association of REALTORS® and helped organize the conference. “While job growth is promising, it raises questions about the condition of area roads and if there is enough housing supply.” 

In 2018, for the first time, renters will need to earn more than $20 an hour – or more than $43,200 annually – to afford a two-bedroom apartment in Grundy County, said Brent Newman, Executive Director of the Grundy County Housing Authority. A resident making minimum wage – $8.25 an hour – would need to work 100 hours a week for 52 weeks to afford a two-bedroom apartment in Grundy County.  

Using REALTORS® Property Resource, Gorrell presented solutions to the situation in a non-confrontational format. She focused on the demographic makeup of the community, used ideas from the audience and then discussed regulatory hurdles and incentives from the state.  

Blustein

When participants in the conference were asked for their parting thoughts, Blustein summarized to the audience: “There is a housing supply issue, which is driving up costs. The easiest way to solve this problem is to identify and remove hurdles to new housing.”

SRES designation helps aging awareness; boosts your business says Read

Chris Read

Woodridge-area REALTOR® Chris Read serves as an expert source in an article distributed this week by RISMedia, “Better Your Business by Becoming a Real Estate Resource for Seniors.”

Read is managing broker/owner of CR REALTOR® and CEO of CR Strategies LLC in Woodridge, and holds numerous professional real estate designations including NAR’s Seniors Real Estate Specialist® (SRES). This training helps her consider real estate transactions from the perspective of a growing demographic, regarding issues such as taxes, retirement and how to search for independent living or assisted living solutions.

The training helps her connect with housing and service organizations, and it shows her competency in a specific area as well as a desire to serve seniors well.

Find out more about SRES training.

 

 

Illinois home sales inched slightly higher in October

October Housing InfographicStatewide home sales shifted back into positive territory in October following several months of declines and median prices continued to make year-over-year gains, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in October 2017 totaled 12,796 homes sold, up 0.3 percent from 12,764 in October 2016.

The statewide median price in October was $185,000, up 3.9 percent from October 2016, when the median price was $178,000. The median is a typical market price where half the homes sold for more and half sold for less.

“The housing market cooled in some areas with the weather in October, but the underlying desire by buyers to get into a new home remains a constant,” said Matt Difanis, ABR, CIPS, GRI, president of Illinois REALTORS® and broker-owner of RE/MAX Realty Associates in Champaign. “The continued drop in the average time it takes to sell a home in the state coupled with an increase in median prices over last October shows that even in what’s traditionally a slower time many people are willing to wade into the market and make aggressive offers.”

The time it took to sell a home in October averaged 54 days, down from 60 days a year ago. Available housing inventory totaled 57,911 homes for sale, a 10.4 percent decline from October 2016 when there were 64,601 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.90 percent in October 2017, an increase from 3.81 percent the previous month, according to the Federal Home Loan Mortgage Corp. In October 2016, it averaged 3.47 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in October 2017 totaled 8,994 homes sold, up 0.3 percent from October 2016 sales of 8,969 homes. The median price in October 2017 was $222,500 in the Chicago PMSA, an increase of 3.5 percent from $215,000 in October 2016.

“While consumer sentiment about the economy appears positive, there is still hesitation about the housing market,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “However, mortgage applications have increased and prices and sales in both Illinois and Chicago increased on an annual basis, a trend that is forecast to continue into 2018.”

According to the data, forty-three (43) Illinois counties reported sales gains for October 2017 over previous-year numbers, including Rock Island County, up 19.5 percent with 135 units sold; DuPage County, up 5.3 percent with 1,066 units sold; and Madison County, up 1.0 percent with 304 units sold. Fifty-five (55) counties showed year-over-year median price increases including Peoria County, up 13.8 percent to $119,500; Lake County, up 11.1 percent to $227,750; and Sangamon County, up 5.0 percent to $132,450.

The city of Chicago saw year-over-year home sales hold steady in October 2017 with 2,047 sales, compared to 2,046 in October 2016. The median price of a home in the city of Chicago in October 2017 was $262,000, up 0.7 percent compared to October 2016 when it was $260,100.

“Steady seems to be the name of the game, and this fall is proving no different,” said Rebecca Thomson, president of the Chicago Association of REALTORS® and Vice President of Agent Development at @properties. “Although inventory continues to tighten, we now see an increase in new construction that is fueling price gains, particularly in the condo market. As we enter the holiday season, between the healthy economy and strong demand, these trends show little signs of slowing down.”

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 Nov. 7, 2017 for the period Oct. 1 through Oct. 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 47,000 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.

Five takeaways on current housing market trends

Economists Ken Rosen and Lawrence Yun, center, answer audience questions after the residential housing presentation.

Did you know today’s U.S. homeowners are staying in their homes longer?

Homeowner tenure now averages 10 years compared to the past when they were more likely to stay put for an average of 6 years before moving, said Lawrence Yun, chief economist for the National Association of REALTORS®.

Yun shared some of the current trends and issues facing the U.S. housing market in his presentation, “Residential Economic Issues and Trends Forum,” at the REALTORS® Conference & Expo in Chicago on Friday. He was joined by Ken Rosen, an economist with Rosen Consulting Group.

Here are four more takeaways from the presentation:

  • Housing inventory is historically low and some areas are harder hit than others – Total U.S. inventory is averaging about four months of supply. But some communities, even in the Midwest, have even less. Kansas City has a two-month supply of inventory while Austin is just shy of that.
  • Sellers fear the “empty chair” scenario – Because of the low inventory, some sellers who would otherwise be ready to list are waiting because they fear that if they stand up and sell their home, there won’t be enough “empty chairs,” or housing stock for them to find a replacement.
  • First-time buyers face more hurdles in coming up with a down payment -Rising home prices are benefiting sellers who are gaining more home equity, making it easier for them as repeat buyers to come up with a down payment. Higher home prices are having the opposite effect for first-time buyers.
  • More new housing stock could alleviate some of the inventory crunch – Single-family housing starts are now well below a 50-year average and recent natural disasters are putting an even greater strain on available housing in some areas. An influx of new construction would provide needed inventory.

Strong buyer demand, lower inventory push Illinois home prices higher in September

September 2017 Housing InfographicHomes sold quickly and at higher median prices in September, even as statewide home sales dipped slightly amid lower than normal housing inventory levels, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in September 2017 totaled 13,657 homes sold, down 4.0 percent from 14,223 in September 2016.

The statewide median price in September was $192,500, up 6.9 percent from September 2016, when the median price was $180,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Sellers are definitely reaping the benefits of a market which in many areas continues to be dogged by tight inventories,” said Illinois REALTORS® President Matt Difanis, ABR, CIPS, GRI of Mahomet, co-owner of RE/MAX Realty Associates in Champaign. “Although the summer selling season is drawing to a close, interest on the part of many buyers does not seem to be waning as evidenced by the short time on average it is taking to complete a purchase.”

The time it took to sell a home in September averaged 51 days, down from 58 days a year ago. Available housing inventory totaled 60,669 homes for sale, a 10.5 percent decline from September 2016 when there were 67,796 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.81 percent in September 2017, a decrease from 3.88 percent the previous month, according to the Federal Home Loan Mortgage Corp. In September 2016, it averaged 3.46 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in September 2017 totaled 9,634 homes sold, down 4.6 percent from September 2016 sales of 10,095 homes. The median price in September 2017 was $230,000 in the Chicago PMSA, an increase of 5.7 percent from $217,500 in September 2016.

“Housing inventory continues to dampen sales,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “This problem is reflected in the significant increases in the sales prices of foreclosed properties, increasing by over 15 percent compared to 5 percent for regular sales.”

According to the data, thirty (30) Illinois counties reported sales gains for September 2017 over previous-year numbers, including Kendall County, up 11.4 percent with 245 units sold; Peoria County, up 7.3 percent with 221 units sold; Sangamon County, up 3.9 percent with 267 units sold; and Champaign County, up 3.2 percent with 196 units sold. Sixty-three (63) counties showed year-over-year median price increases including Rock Island County, up 22.4 percent to $112,000; DuPage County, up 10.0 percent to $265,000; and Cook County, up 6.3 percent to $238,000.

The city of Chicago saw a 3.7 percent year-over-year home sales decline in September 2017 with 2,309 sales, down from 2,398 in September 2016. The median price of a home in the city of Chicago in September 2017 was $275,000, up 5.8 percent compared to September 2016 when it was $260,000.

“Although the market has slowed somewhat from peak summer activity, it continues to push forward, with decreases in overall inventory and market time reflecting continued interest in investing in a home,” said Rebecca Thomson, president of the Chicago Association of REALTORS® and Vice President of Agent Development at @properties. “Moving into the colder months, pricing properties correctly will continue to be the key to capturing serious buyer attention, and quick decision making and flexibility will gain greater importance as inventory declines.”

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 Oct. 7, 2017 for the period Sept. 1 through Sept. 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 47,000 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.