EVERY REAL ESTATE MARKET IS LOCAL. ASK A SEASONED REALTOR, LIKE LYN SIMS, WHAT'S GOING ON LOCALLY!
What if 2008 was the best year to buy real estate and you didn't do it?
This time may be your "best opportunity" market in years! Mortgage interest rates are low and prices in Northwest Suburban Illinois are still holding fairly well, generally area prices are flat. The median price home sale in Illinois is actually UP at $198,768*. The Chicago Median Price for a home is $264,271* which is also UP.
NOT EVERYWHERE IN EVERY NEIGHBORHOOD ARE PRICES FALLING. That's why I'm saying the real estate market is local - it even makes a difference from subdivision to
subdivision in every single town! But, over time and the long haul, no investment comes close to real estate so now is a great time to buy, sell or invest.
So again, "All real estate is local." What's happening in your local market is all that matters. Ask a great local REALTOR, like Lyn Sims at RE/MAX Suburban what's going on in your market. She is an expert in pricing, buying, demand and selling patterns.
So let's take a look at what is happening in Elk Grove Village - Notice the graph is not spiraling downward like the media would have you believe. The median house/condo value in 2007 was $345,900 which is up from the survey done in 2000 of $189,400. Does it seem like the real estate market is tanking? NO.
Continuing with the graph you will notice that the total number of homes on the market is lowering steadily since the 4th Quarter of 2007. OK, tell me something I don't know. YES, market demand is down.
The average sales price is actually UP from $250,000, will you look at that! UP as in not downwardly crashing to the center of the earth. This reminds me of the 'Chicken Little' story.
Can I buy a house and still sell it 2 years later if I have to move? YES - but you have to change your transient thinking a little bit. You're probably not going to come out with money in your hand! You're going to have to think a little bit more conservatively for the future years. 'Flipping' except in rare instances is not going to work no matter how many HGTV shows you watch!
So don't be scared off by stories about a "credit crunch" either. Conventional and FHA loans are available for credit-worthy buyers seeking these types of mortgages. And mortgage interest rates remain at historically low levels. Don't be scared off by forecasts that encompass the entire United States! Think how ridiculous that is!
Is it a good time to buy? I'm saying YES!
People who have just went thru foreclosure are not probably going to get a loan? YEP, and in Illinois that is just a small percentage of the homes owned that are in trouble and headed for foreclosure.
People will always need to buy or sell a home whether a move is job-related or you are ready to downsize or expand.
The national housing market has received a lot of negative press lately with stories of mortgage market tightening and increasing foreclosures. But for the average person with good credit, traditional financing is readily available. Lyn Sims still has 100% financing available to those that qualify! There are still programs that offer down payment assistance to buyers - but you have to know the right people to get the help!
It's important to do some homework before you buy to see what you can afford and what your financing options are. Today, mortgage interest rates are well below their all-time high of over 18 percent in the early 1980s. People bought homes then and they can buy them now! HEY I know 'cause I was sellin' em! See this post by 'Jeff Belonger, the FHA Expert' on how the media is not telling you the truth about the mortgage business!
Is housing still your best long-term investment. I'm saying YES again!
Homeowners who are in it for the long-term are coming out well ahead. Here's why. Because of the power of leveraging, a $10,000 down payment on a typically priced home in the United States at a typical home price appreciation of 5 percent will return $110,000 after 10 years. The same $10,000 invested in the stock market appreciating at 10 percent annual increases will result in $23,600.
Why wait? It's a good time to buy and grab your piece of the pie!
Lyn Sims of Re/Max Suburban (847)230-7324 works in the Northwest Suburban Chicago areas of Bartlett, Roselle, Bloomingdale, Schaumburg, Hoffman Estates, Hanover Park, Elgin, South Elgin, Carol Stream, Medinah, Palatine, and yes Elk Grove Village.
Offering local real estate advice for 25 years!
What if 2008 was the best year to buy real estate and you didn't do it?©2008 Lyn Sims - RealEstateConsumerInfo.com All data and information provided on this blog is for informational purposes only. Lyn Sims makes no representations as to accuracy, completeness, correctness, suitability or validity of any information on this site and will not be liable for any errors, omissions, or delays in information or any losses, injuries, or damages arising from it’s display or use.
Sources: National Association of REALTORS®,2008 Housing Price Forecast from the University of IL,City-data.com,MRED MLS,my little pencil and calculator.
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