We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
Thinking of buying a home? Call (708) 529-JUDY and mention this to receive a free home warranty, at closing, as a thank you. Call for more details.
Tag: Judy Glockler
Are you looking for a home in Orland Park, Illinois?
Currently, there are 254 single family homes, condos and townhomes for sale in this southwest suburban Chicago community.
Looking for a professional, experienced Orland Park Real Estate Agent? Judy Glockler, The Glockler Group, has unparalleled experience in the local market – over 40 years of award-winning service. Coldwell Banker Residential is the #1 Brokerage in Orland Park, in closed sales and volume – no one sells more in Orland Park. Vast market knowledge is imperative in this market.
Call (708) 529-JUDY today and mention this for a free home warranty, at closing, when you buy or sell with Judy.
If you are considering listing this spring, now is the time.
May is the best bet for home sellers, according to an analysis by ATTOM Data Solutions, which found that the average seller gains 5.9 percent more than market value—the highest of all months—in the fifth month of the year.
June is profitable for sellers, as well, with an average 5.8 percent premium, with June 28, pointedly, reeling in 9.1 percent—the best day of the year. May 29 and May 31 are also high-returning, with an 8.2 percent premium and an 8.3 percent premium, respectively.
For homeowners, the key is timeliness. According to the analysis, the advantage drops off sharply after June, with a 3.8 percent premium in July, a 4.2 percent premium in August, and back down to a 3.2 percent premium in September. Through the remainder of the year, the average seller earns between 1.6 percent and 2.6 percent over market value—considerably less than had they acted during the May peak.
The analysis findings’ are reminiscent of spring 2017, when May 1 through May 15 was found to be the ideal listing window. The difference now is that inventory is tighter—down 7.2 percent year-over-year—and, although homeowners are getting multiple offers, there is the burden of buying another home at the record prices they are today.
Still, it is a seller’s market, and the numbers have it: In the first three months of 2018, the average seller recouped 29.5 percent, or $53,369 at resale.
Judy Glockler has an industry-leading 40 YEARS of experience in the local real estate market. A career-long, award-winning Agent, what she, and The Glockler Group, offers is unparalleled. Two Professional Agents, two offices, with unmatched marketing, and a dedication to putting clients’ interest first through top-notch service.
Thinking of buying or selling in the southwest or west Chicago suburbs? Call today (708) 529-JUDY or send a message us via this contact page (contact us tab – upper right corner of page)
Click here for a current list of homes, and land, for sale in Homer Glen, Illinois. Thinking of Moving? Call us today – (708) 529-JUDY – Judy Glockler is the #1 Real Estate Saleswoman in Homer Glen, in total sales, for the last decade plus.
Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.
Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.
Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.
That hasn’t happened this year.
Demand for housing has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate.
The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June.
Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.
If you are planning on selling your home in 2018, meet with The Glockler Group to evaluate the opportunities in your Chicago area market.
12642 Lake View Drive, Orland Park
This beautiful brick Georgian has an amazing large deck with a wonderful private yard. Home features optional main floor 5th BR or office, large sunny kitchen, with granite, island, updated appliances & pantry, overlooking spacious vaulted family room with fireplace. Hardwood floors throughout! 3 car garage. Buyers will love the Bridlewood Estates location-close to shopping, expressways & more. Homer Glen and Lockport schools! $499,900
Call Judy Glockler, RE/MAX 1st Service. (708) 233-2653.
An in-ground pool, a finished basement with oak bar, theatre room and kitchenette and much more!
11008 Laurel Hill Drive
Orland Park, IL 60467
Seller lost buyer and is looking for a new owner of this great home. Beautiful eat-in kitchen has granite counter tops, there is a formal living room and dining room, main floor family room with fireplace, 4 spacious bedrooms, including a grand master suite, finished basement with oak bar, theatre room and kitchenette. Enjoy the in-ground pool and cabana. This home is a must see! $574,900.