Morning Minute: Mortgage rates move lower, Freddie Mac reports

Fixed mortgage rates moved lower this week for the first time in 10 weeks, Freddie Mac reports this morning. The 30-year, fixed rate averaged 4.20 percent, down from 4.32 percent last week. The 15-year, fixed rate averaged 3.44 percent, down from 3.55 percent. Read the full release from Freddie Mac.

In other headlines:

Good Vibrations: 6 Beginner Tips to Boost Your Home’s Feng Shui – HousingWire

Beige Is Back: And There’s No Blah About It – NAR’s Styled, Staged & Sold blog

Smart Home Products You Haven’t Heard of Yet – NAR Newsline blog

Morning Minute: Mortgage interest rates climb to two-year high, Freddie Mac reports

Home buyers looking to lock in lower mortgage rates may want to make a move now. Freddie Mac reports today that fixed mortgage rates climbed to 4.30 percent for a 30-year-fixed rate and averaged 3.52 percent for a 15 year. Rates have steadily been moving higher in recent weeks and are now at a two-year high.

“A week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision and this week’s survey reflects that response. Following Yellen’s speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014,” said Sean Becketti, chief economist for Freddie Mac, in the news release.

In other headlines:

Existing-Home Sales Forge Ahead in November – National Association of REALTORS® (NAR)

Housing Shortage for How Long? – NAR Economists’ Outlook blog

Illinois home sales, prices gain traction in November

November HousingIllinois homes sales regained momentum in November with double-digit increases in annual home sales and continued strong gains in median prices, according to the latest housing report from Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in November 2016 totaled 11,341 homes sold, up 14.8 percent from 9,881 in November 2015.

The statewide median price in November was $178,000, up 7.9 percent from November 2015 when the median price was $165,000. The median is a typical market price where half the homes sold for more and half sold for less.

“Buyers were significantly motivated in November, with the depressed sales numbers from October suddenly seeing a reversal,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “Sellers were the big beneficiaries of this surge in market interest, as buyers determined now that the election is over and interest rates might be moving higher, it’s time to finally make a decision.”

The time it took to sell a home in November averaged 62 days, down from 68 days a year ago. Available housing inventory totaled 57,310 homes for sale, a 14.7 percent decline from November 2015 when there were 67,187 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.77 percent in November 2016, an increase from 3.47 percent the previous month, according to the Federal Home Loan Mortgage Corp. In November 2015 it averaged 3.93 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in November 2016 totaled 8,093 homes sold, up 16.0 percent from November 2015 sales of 6,979 homes. The median price in November 2016 was $215,000 in the Chicago PMSA, an increase of 10.3 percent from $195,000 in November 2015.

“With the election finally over, consumers appeared to have responded with a significant growth in sales (year-over-year),” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Supply continues to be a problem, but prices of both regular and foreclosed properties increased and the forecasts suggest that these trends will continue into the first quarter of 2017.”

According to the data, fifty-seven (57) Illinois counties reported sales gains for November 2016 over previous-year numbers, including Lake County, up 25.6 percent with 730 units sold; Madison County, up 16.9 percent with 249 units sold; Cook County, up 13.1 percent with 4,422 units sold; and Peoria County, up 9.3 percent with 165 units sold. Fifty (50) counties showed year-over-year median price increases including Kankakee County, up 15.8 percent to $125,000; McHenry County, up 12.5 percent to $193,812; and McLean County, up 2.0 percent to $161,000.

The city of Chicago saw a 13.2 percent year-over-year home sales increase in November 2016 with 1,881 sales, up from 1,661 in November 2015. The median price of a home in the city of Chicago in November 2016 was $260,000, up 11.3 percent compared to November 2015 when it was $233,500.

“The sharp uptick in both single family and condo home sales reflects consumers’ desire to enter the homeownership marketplace as opportunities present themselves, with the anticipated rise in rates and declining inventory boosting activity,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Buyers who’ve been watching from the sidelines and may have been distracted for a multitude of reasons, including the Cubs World Series run and the election, are being spurred into action, and both buyers and sellers are reaping the rewards.”

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 Dec. 7, 2016 for the period Nov. 1 through Nov. 30, 2016. 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 44,000 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, the University of Illinois REAL forecast and a forecast looking ahead to 2017 at www.illinoisrealtors.org/marketstats.

2017 housing infographic highlights higher median prices, sales and more

2017_forecast_final_300px_thumbnailHousing prices and sales are predicted to go up statewide in 2017, according to the Illinois REALTORS®. Share the news by using the 2017 Housing Forecast infographic.

Titled “Housing prices forecast to increase in 2017,” this infographic summarizes the high points of the 2017 Housing Forecast by Geoffrey J.D. Hewings, Emeritus Director, Regional Economics Applications Laboratory (REAL) at the University of Illinois.

Also, the charts give visual life to the numbers behind Hewings’ forecast and also point to three areas to watch in 2017: interest rates, inflation and inventory.

Read the 2017 Housing Forecast.

Illinois home prices show solid gains in October; Sales decline

10_october-2016A drop in the number of homes on the market and a typical seasonal slowdown helped drive Illinois home sales lower in October even as median home prices continued to post solid annual gains, according to Illinois REALTORS®.

Statewide home sales (including single-family homes and condominiums) in October 2016 totaled 12,469 homes sold, down 5.4 percent from 13,186 in October 2015.

The statewide median price in October was $179,000, up 6.9 percent from October 2015 when the median price was $167,500. The median is a typical market price where half the homes sold for more and half sold for less.

“While sales were softer in October on an annual basis, much of this can be attributed to a typical seasonal slowdown and the chronically low number of homes on the market.” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “Given the relatively short time it is taking on average to sell a home, strong market demand might work to a seller’s advantage as we start to close out the year.”

The time it took to sell a home in October averaged 60 days, down from 69 days a year ago. Available housing inventory totaled 61,837 homes for sale, a 14.7 percent decline from October 2015 when there were 72,495 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage was 3.47 percent in October 2016, an increase from 3.46 percent the previous month, according to the Federal Home Loan Mortgage Corp. In October 2015 it averaged 3.78 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in October 2016 totaled 8,762 homes sold, down 6.3 percent from October 2015 sales of 9,350 homes. The median price in October 2016 was $216,250 in the Chicago PMSA, an increase of 8.1 percent from $200,000 in October 2015.

“No doubt that the election contributed to a decline in sales, but prices continue to grow,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “For the next three months, price growth is anticipated to be a little stronger.  Declining supply contributes some uncertainty to sales growth.”

According to the data, thirty-two (32) Illinois counties reported sales gains for October 2016 over previous-year numbers, including Champaign County, up 17.9 percent with 184 units sold; Kane County, up 6.8 percent with 593 units sold; and Sangamon County, up 1.5 percent with 263 units sold. Fifty (50) counties showed year-over-year median price increases including St. Clair County, up 20.9 percent to $133,000; Will County, up 10.3 percent to $199,900; and Cook  County, up 10 percent to $220,000.

The city of Chicago saw an 8.8 percent year-over-year home sales decrease in October 2016 with 1,981 sales, down from 2,173 in October 2015. The median price of a home in the city of Chicago in October 2016 was $262,000, up 9.2 percent compared to October 2015 when it was $240,000.

“Although the autumn market’s pace is reduced compared to the summer months, great opportunities to buy and sell property remain,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “As long as the low inventory continues, strategically priced properties will continue to fly off the market at higher prices.”

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, 2016 for the period October 1 through October 31, 2016. 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 44,000 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.