Realty Executives Midwest
According to the latest data from Fannie Mae, 23% of Americans still think home prices will go down over the next twelve months. But why do roughly 1 in 4 people feel that way?
It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a price crash and those concerns are still lingering. You may be hearing people in your own life saying they’re worried about home prices or see on social media that some influencers are saying prices are going to come tumbling down.
If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?
The answer is simple. Listen to the professionals who specialize in residential real estate.
Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below):
But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project home prices will net positive this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:
What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.
So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing.
There’s been a lot of misleading information about home prices over the past year. And that’s still having an impact on how people are feeling about the housing market today. But it’s best not to believe everything you hear or read.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Every decision counts when gearing up to sell your house, from the color of the bathroom tiles to the style of the living room rug. However, some choices can significantly influence potential buyers’ perceptions and your home’s selling price. Here are some practical and impactful staging tips that can make your residence irresistible.
Your home’s exterior is a potential buyer’s first interaction with your property. It sets the tone for what is to come, so ensuring it looks pristine is crucial. Here are some tips to elevate curb appeal:
Touch up the garden: A garden in disarray can be off-putting. Regularly trim overgrown bushes, plant perennial and seasonal flowers for continuous bloom, and keep the lawn neatly mowed. Add a few decorative planters or garden ornaments for an extra touch.
Good lighting does more than illuminate a room — it elevates it. It can change the entire feel of a space, drawing attention to specific features, creating warmth, and making areas feel more spacious and inviting.
Buyers do not just want a house — they are seeking a space to picture their future memories unfolding.
The National Association of Realtors underscores this sentiment, revealing that 81% of buyers’ agents believe staging paves the way for clients to visualize a property as their next home. Here is how to foster that connection:
Small changes can drastically increase how much buyers are willing to offer. Focus on details and add elements that increase your home’s value.
Physical staging lays the groundwork, but virtual staging takes it to the next level. This is critical since online listings often serve as the first point of contact between your home and potential buyers.
Staged homes often fetch higher offers and sell faster. It is not about spending heaps of money but investing wisely. It presents your home in its best light, highlighting its strengths and offering potential buyers a glimpse into their future.
Source: Realty Executives
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
As of September 2023, the Darien real estate market is experiencing some fascinating shifts.
Firstly, we have a current inventory supply of only 0.47 months. Yes, you heard that right! This means that if no new homes were added to the market, it would only take 0.47 months to sell off all the existing inventory. This low supply is certainly something sellers should take note of.
Now, let's talk about the remarkable change we've witnessed in the past year. Over the last 12 months, the months supply of inventory has experienced a staggering decline of 71.17%. This shows a significant decrease in available homes, which ultimately favors sellers like you. With fewer options for buyers, your home becomes more desirable and stands a better chance of selling quickly.
Moving on to the next noteworthy statistic, the list to sold price percentage currently stands at an impressive 100.2%. This means that on average, homes in Darien are selling for 100.2% of their initial list price. As a seller, this indicates a strong market where buyers are willing to pay a premium for well-priced properties.
Now, let's talk about the crucial aspect of time. The median days on the market in Darien is just 12 days. That's right, only 12 days! This means that, on average, homes are selling within a mere two weeks of being listed. With such a quick turnaround time, sellers can expect a speedy and efficient selling process.
Lastly, let's discuss the median sold price in Darien, which currently stands at $387,500. This represents the middle point of all homes sold in the area, indicating a strong market with healthy price growth. It's essential to keep an eye on this figure as it can provide valuable insights into the overall market performance.
So, sellers, what do all these numbers mean for you? Well, it's evident that the Darien real estate market is favoring sellers right now. With a low supply of inventory, high list to sold price percentages, quick selling times, and a healthy median sold price, there couldn't be a better time to list your home.
If you're considering selling your home in Darien, we would be thrilled to help you navigate this exciting market. Feel free to reach out to us at Realty Executives Midwest, where we pride ourselves on providing exceptional service to our clients.
Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):
That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.
There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.
Urban Institute explains how this is impacting buyers and sellers right now:
“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”
Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?
If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.
Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.
The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:
“If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”
Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.
The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, connect with a local real estate agent.
Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup:
“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”
While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here’s a bit more information to help you think about those two benefits of homeownership to see if they’re a key factor for you too.
You might want to stop renting because rents keep going up. If you’re a renter, that means there’s a chance your payment will increase each time you sign a new rental agreement or renew your current one.
On the other hand, when you buy your home with a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you a peace of mind that renting just can’t provide. Jeff Ostrowski, real estate journalist, breaks it down:
“With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.”
Beyond that, owning a home can also be a great long-term investment. While renting may be the more affordable option right now, it doesn’t provide an avenue for you to grow your wealth over time. Mark Fleming, Chief Economist at First American, explains that’s an important distinction to consider:
“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.”
Basically, renting doesn’t allow you to build equity. In contrast, homeownership can help you grow your net worth as your home’s value appreciates. That’s a significant perk you can’t get if you keep renting.
When you take that into account, it may make better financial sense to buy. Most experts project home prices will continue to appreciate over the next few years at a pace that’s more normal for the market. That means when you buy a home, not only are you investing in a place to live, but you’re also investing in your financial future.
If you're ready, it can be a smart move to buy your first home instead of renting. Connect with a real estate professional so you can stabilize your housing payment and start building wealth for your future.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
