...And You Thought The Inventory Was Small Now?

It seems to be a universal problem.  There is very little fresh inventory in most residential markets. This is particularly true in Winnetka, Wilmette, Evanston and Glencoe.

 We’ve heard all kinds of reasons why:

  • Homeowners who have been holding on this long are seeing improvements in the market and are deciding to wait a little longer;
  • Underwater homeowners, are hesitant to commit to short sales and feel that they can’t sell;
  • Those thinking about “moving up” or “downsizing” are reluctant to take a hit on their current homes; and
  • Countless other theories.


© Copyright Steve Fareham and licensed for reuse under this Creative Commons Licence
nothing for sale in Winnetka
Have you Thought About This?                                  
No matter what your political beliefs, most people feel that interest (mortgage) rates are going to rise significantly at some point in the next several years.


Historically, we have all had conversations with homeowners who happened to catch a “blip” in the market and had locked in a rate that was as much as 1% to 1 ½% below the current market rate.  Those people often ended their conversation with “ I couldn’t possibly ever sell my house.  I got lucky and locked in my mortgage at 5 1/8%".  

Let’s Move Up The Time Machine

The year is 2017.  Believe it or not, the economy has recovered.  The ten year U.S. Treasury Note is trading at 5.25% (currently at 1.81%).  The 30 year fixed rate conventional mortgage is available to qualified buyers (and re-financers) at 6.25%.


The Big Question

Please tell us which homeowners who had locked in mortgages at between 3.5% and 4.25% (with the prospect of higher rates down the road) are willing to give up those loans to purchase something new?


While this is a great benefit for those who have had the good fortune to capture these loans, the implications for future housing markets may be ominous.

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Susan and Howard Meyers

The Hudson Company

851 Spruce Street

Winnetka, Illinois  60093

847.778.1394

howard@susanandhoward.com

 

 
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2 Comments on ...And You Thought The Inventory Was Small Now?

AUG
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509,728 Points 2 Featured Posts

The rates are great no doubt the qualifications are gotten very tight... Those that got low may or may not move later depends on circumstances../
10:33am • #1
AUG
25
152,624 Points 7 Featured Posts

Wait till Fannie and Freddie begin bulk sales of properties to investors. If that is allowed, and pilot programs have already been rolled out and started, inventory will decrease as will agent head count. Please support your local association, state and NAR as they fight to prevent this.
12:47pm • #2


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Howard and Susan Meyers

Winnetka, IL

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The Hudson Company Winnetka and North Shore

Address: 851 Spruce, Winnetka, Il., 60093

Cell Phone: (847) 778-1394

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