Real Estate Market Update - Northwest Suburban May 2011
I am psyched about the good news! Things are improving for the 2nd month in a row for the Northwest Suburban Market! A few of the towns are down but for the most part sales are up. Most of the average sales prices are still low but that is because most of the lower priced homes are being gobbled up first. It will take some time but once the lower price ranges begin to move at a decent pace the move up buyers will also begin their acquisition of that larger home. Interest rates are at an all time low making affordability the highest it's ever been. Get out there and take advantage of these great prices!
Positive Signs .... things are looking up in a great way so I'll share the exciting numbers with you.
|Single Family Homes||May 2011 Total +/-||2011
|% YOY Change||Avg. Sales Price 2011|
|Elk Grove Village||13
|Hoffman Estates||19 Down||88||-10.2%||$264,475|
|Multi-Family Homes||May 2011 Total +/-||2011
|% YOY Change||Avg. Sales Price
|Elk Grove Village||16
OK, so these numbers aren't making you do cartwheels if your home is on the market but it is showing that we are having slight recovery here in our area for the 2nd month in a row. Single family homes are doing better than the condos and townhouses at this point. As usual there are some anomalies, the high request areas that normally do well are not and the others are. Who's to say but is that housing ball beginning to roll finally? I say it is!
Overall Illinois Statistics -
Nearly 70 percent (68.5%) of Illinois homes sold in the first quarter were priced below $200,000 as first time buyers took advantage of the low prices in the Illinois
housing market. I have been saying this for months! The lowest prices are the ones selling first!
Campbell Survey reports 37.5% of buyers in April were first-time buyers, investors 23%.
Affordabilty Index for Buyers: NAR’s housing affordability index shows the typical monthly mortgage payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970. (NAR, 4/20/11) With this lower number buying a home should be more enticing to buyers that are currently on the fence with indecision.
The sale of just one home in Illinois produces $28,581 in expenditures made by buyers and sellers in the transaction (with a total annual impact of $7.9 billion in direct and indirect expenditures) across the Illinois economy. This 'ripple' effect spurs along other related industries through out the local economy. When a new home is purchased there are expenditures for the buyer to make the home theirs - carpet, paint, wallpaper, hardware, furniture, lawn mowers, etc. When a seller begins to sell their home there is pre-listing marketing to consider which includes trips to Home Depot, Lowes and Menards. I think many more things revolve around your 'home' or the housing industry than you might realize!
Sources: MRED May Stats 2011
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!
Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.