Exploring the Booming Real Estate Market in Leomont, IL: Key Insights and Trends

Introduction: Welcome to our latest blog post, where we delve into the flourishing real estate market of Leomont, IL. In this article, we will provide you with valuable insights and key statistics that reflect the current state of the market. Whether you're a potential buyer or seller, these findings will guide you in your real estate endeavors.

1. Average Sale Price Increase in Leomont, IL: Leomont’s real estate market is experiencing remarkable growth, evident in the significant increase in average sale prices. Over the past year, the average sale price has surged to $480,000, demonstrating an impressive 7.3% rise. This upward trend presents a compelling opportunity for homeowners and investors alike.
2. Average Market Time Trends: To understand market conditions, it's essential to consider the average market time. In Leomont, IL, the average market time has slightly increased by 1.9% to reach 55 days. This figure indicates that properties are selling relatively quickly, showcasing a healthy balance between supply and demand. Buyers can explore various options within a reasonable timeframe, while sellers benefit from the market's efficiency.
3. Decrease in Single Family Homes for Sale: Leomont, IL has witnessed a notable decrease of 12.3% in the number of single-family homes available for sale. Currently, there are 57 properties on the market. This decline in inventory can be attributed to the high demand and limited supply, creating a competitive market. As a result, sellers may enjoy increased buyer interest and the potential for higher offers.
4. Rise in Price per Square Foot: Leomont, IL's real estate market showcases another significant trend with an increase of 4.7% in price per square foot. The average price per square foot has reached $201, indicating that buyers are willing to pay a premium for well-maintained properties and desirable locations within the area. This surge signifies the market's strength and stability.

Conclusion: The real estate market in Leomont, IL is booming, as reflected in the upward trends in average sale prices, price per square foot, and the decrease in the number of single-family homes for sale. Sellers can take advantage of this positive market, while buyers can explore opportunities within a reasonable average market time. Leomont, IL offers a dynamic and promising real estate landscape for both buyers and sellers.

This Real Estate Market Is the Strongest of Our Lifetime

When you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point. 

1. The Current Mortgage Rate on Existing Mortgages

First, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (FHFA), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below):

Now, there’s a lot of talk in the media about a potential foreclosure crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That’s because they can't go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they downsize, with today’s higher mortgage rates, it could cost more.

Here's why this gives the housing market such a solid foundation today. Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.

2. The Amount of Homeowner Equity

Second, Americans are sitting on tremendous equity right now. According to the Census and ATTOM, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below):

In the industry, the term for this is equity rich. This is significant because if you think back to 2008, some people had to make the difficult decision to walk away from their homes because they owed more on the home than it was worth.

But this time, things are different because homeowners have built up so much equity over the past few years alone. And, when homeowners have that much equity, it helps us avoid another wave of distressed properties coming onto the market like we saw during the crash. It also creates an extremely strong foundation for today’s housing market.

Bottom Line

We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008.

Real Estate Is Still Considered the Best Long-Term Investment

With all the headlines circulating about home prices and rising mortgage rates, you may wonder if it still makes sense to invest in homeownership right now. A recent poll from Gallup shows the answer is yes. In fact, real estate was voted the best long-term investment for the 11^th consecutive year, consistently beating other investment types like gold, stocks, and bonds (see graph below):

If you’re thinking about purchasing a home, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.

Why Do Americans Still Feel So Positive About the Value of Investing in a Home?

Purchasing real estate has typically been a solid long-term strategy for building wealth in America. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes:

“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

That’s because owning a home grows your net worth over time as your home appreciates in value and as you pay down your mortgage. And, since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity.

Bottom Line

Buying a home is a powerful decision. So, it’s no wonder so many people view real estate as the best long-term investment. If you’re ready to start on your own journey toward homeownership, let’s connect today.

Oops! Home Prices Didn’t Crash After All

During the fourth quarter of last year, many housing experts predicted home prices were going to crash this year. Here are a few of those forecasts:

Jeremy Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School of Business:

“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside.”

Mark Zandi, Chief Economist at Moody’s Analytics:

"Buckle in. Assuming rates remain near their current 6.5% and the economy skirts recession, then national house prices will fall almost 10% peak-to-trough. Most of those declines will happen sooner rather than later. And house prices will fall 20% if there is a typical recession.” 

Goldman Sachs: 

“Housing is already cooling in the U.S., according to July data that was reported last week. As interest rates climb steadily higher, Goldman Sachs Research’s G-10 home price model suggests home prices will decline by around 5% to 10% from the peak in the U.S. . . . Economists at Goldman Sachs Research say there are risks that housing markets could decline more than their model suggests.”

The Bad News: It Rattled Consumer Confidence

These forecasts put doubt in the minds of many consumers about the strength of the residential real estate market. Evidence of this can be seen in the December Consumer Confidence Survey from Fannie Mae. It showed a larger percentage of Americans believed home prices would fall over the next 12 months than in any other December in the history of the survey (see graph below). That caused people to hesitate about their homebuying or selling plans as we entered the new year.

The Good News: Home Prices Never Crashed

However, home prices didn’t come crashing down and seem to be already rebounding from the minimal depreciation experienced over the last several months. 

In a report just released, Goldman Sachs explained:

“The global housing market seems to be stabilizing faster than expected despite months of rising mortgage rates, according to Goldman Sachs Research. House prices are defying expectations and are rising in major economies such as the U.S.,. . . ”

Those claims from Goldman Sachs were verified by the release last week of two indexes on home prices: Case-Shiller and the FHFA. Here are the numbers each reported:

Home values seem to have turned the corner and are headed back up.

Bottom Line

When the forecasts of significant home price appreciation were made last fall, they were made with megaphones. Mass media outlets, industry newspapers, and podcasts all broadcasted the news of an eminent crash in prices.

Now, forecasters are saying the worst is over and it wasn’t anywhere near as bad as they originally projected. However, they are whispering the news instead of using megaphones. As real estate professionals, it is our responsibility – some may say duty – to correct this narrative in the minds of the American consumer.

?? Home Prices on the Rise: I am thrilled to share that the real estate market in Westmont is thriving! Home prices have experienced a significant increase of 10.7% in the past year. The average home price now stands at an impressive $337,750, making it an opportune time to invest in your dream home in our wonderful town.

?? Limited Inventory: As demand for homes continues to surge, the number of homes for sale in Westmont has d?? Exciting Real Estate Update for Westmont! ??

?? Value for Your Investment: With the current average price per square foot up by 4.6% to $204, you can be confident that your investment in Westmont real estate offers excellent value. Whether you're a first-time buyer or looking to upgrade, Westmont provides a range of options to suit every budget and lifestyle.

ecreased by 20.9%. Don't miss out on your chance to find the perfect home in a charming community. Act swiftly to secure your dream property before it's gone!

?? Experience the Westmont Lifestyle: Aside from its thriving real estate market, Westmont offers an incredible quality of life. Explore the beautiful parks, top-notch schools, and a close-knit community that truly makes Westmont feel like home. With its convenient location and vibrant local amenities, you'll find everything you need right at your doorstep.

?? Your Local Real Estate Experts: At Realty Executives Midwest, are passionate about helping you find the perfect home in Westmont. I am dedicated to providing exceptional service and personalized attention, ensuring a smooth and stress-free home-buying experience.

?? Contact Mark Sotir Today: Ready to take the next step towards homeownership in Westmont? Give Mark a call at 630-815-8098 or email him at Marksotir@realtyexecutives.