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2017 should be a solid year for home sales and prices in The Glen

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The Glen in Glenview, Illinois is not only a great place to live, but it also enjoys a strong real estate market. I thought you would find it interesting to look ahead to Glen home sales and prices in 2017.

The economic environment for real estate sales was positive in 2016 which is good news for 2017. The economy continued its steady growth, and the unemployment rate fell to 4.6% in November, the lowest since 2007. A year ago, the rate was 5%. During the Great Recession, unemployment rose to as much as 10%. Wages, too, increased in 2016. Interest rates remained very low with the average 30 year fixed rate loan under 4% for most of the year.  Rates began to climb late in the year, but remained low by historical standards. Economic growth, jobs, wages and mortgage interest rates, of course, are huge drivers of home sales, so we are heading into 2017 with some wind at our backs.

Based on these factors and my intimate familiarity with The Glen, I see a solid year ahead for Glen homeowners who wish to sell their homes. This is true for single family homes, townhomes, duplexes and condos. Mortgage rates should continue to be low by historical standards though they are likely to rise marginally during the year. The current 30 year fixed rate mortgage is about 4.3%; a jumbo is about the same. Fifteen year fixed rate mortgages stand at roughly 3.6%. Economists at The National Association of Realtors project prices of homes in the Chicago metropolitan area will increase by 1.9% in 2017. Based on my analysis of The Glen real estate market, I suspect that we may see a somewhat larger increase.

If you may be interested in selling your home or buying one anywhere on the North Shore, please contact me. I am a long time Glen resident and an award winning Realtor affiliated with @properties. Among the 80,000+ @properties Realtors worldwide, I have been recognized for being in the top 2%. I can be reached at margaretludemann@gmail.com or 847-401-1802.

Margaret Ludemann

Positive economic environment for real estate sales

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The economic environment for real estate sales was positive through most of 2014, and that good news should continue in 2015. After a slow start in the first quarter 2014 due to the long winter, the American economy had the strongest 6 month performance in 11 years including a 5% growth rate on an annual basis in the 3rd quarter.

Job growth picked up steam in 2014. Nationally the seasonally adjusted unemployment rate fell to 5.6%, down from 7% a year ago and from its high of 10% in October 2009. Illinois unemployment dropped to 6.4% (through November 30), its lowest point since June 2008.

Interest rates remained low during the year. That was somewhat surprising as they were expected to rise in the 3rd and 4th quarters.

The Dow ended 2014 at 17,823, up 7.52% after a remarkable increase of 29.65% in 2013.

The economy is expected to be favorable for home sales in 2015…with growth picking up, unemployment continuing to fall, and mortgage interest rates remaining low (though moving up modestly later in the year). A week ago, mortgage rates hit their 20 month low. Freddie Mac reported the average 30 year fixed rate mortgage interest rate at 3.59%; and 15 year fixed rate mortgages averaging 2.92%

I see home prices rising again, in line with historical norms of 3% to 4%. The bottom line is that if you want to sell your home in 2015, you’ll probably get it done and at a better price than a few years ago.

Margaret Ludemann, @properties Realtor, homeowner in The Glen, Glenview, Illinois

Mortgage interest rates: good news for home buyers and sellers

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A few weeks ago a potential buyer of a home in The Glen (in Glenview Illinois) told me that he was holding off buying a home until mortgage interest rates improve. I believed that was unwise, so I researched historical 30 year, fixed rate mortgage interest rates using Freddie Mac data. I grouped them into 5 year periods and calculated the averages. What did I learn…that recent mortgage interest rates are roughly half what they were 25 years ago!

The average rate in August (the most recent data available) was 4.12% for a 30 year fixed rate mortgage. This is a smidgeon higher than early months of 2013. Rates, however, have inched downward in each of the last 4 months; and that August rate of 4.12% is actually lower than the same month last year. So it is clear that home financing today is extremely low. While rates may bump along with modest increases and decreases in the short term, there is no evidence that they will become appreciably lower in the foreseeable future. In fact, it is likely that rates will eventually increase to more normal levels.

Interest rates matter…a lot…because they affect a buyer’s monthly payment and the total cost of financing over the period of ownership of a home. Every 1% rise in interest rates reduces buying power by approximately 11%. Obviously today’s low interest rates are beneficial to home buyers, but they are also good for home sellers. If buyers can purchase more house because of low interest rates, there are more qualified buyers for sellers’ homes.

If you are interesting in buying a home in The Glen or greater Glenview, please email me at Margaret.ludemann@cbexchange.com or call me at 847-401-1802.

Margaret Ludemann, Glen homeowner and @properties Realtor