10 Facts You Should Know About Today’s Illinois Real Estate Markets.
Think locally and long-term, and do your homework.
- There is no such thing as a national real estate market.
If you read the newspapers, you might get the idea that real estate markets are the same everywhere. If conditions are bad in Las Vegas or Detroit or Miami, they must be bad everywhere, right? WRONG! Real estate markets are local; when you look to buy or sell, pay attention first to sales price trends, volume and inventory in your target market or region rather than to misleading headlines about national sales trends.
- Illinois home values are stable.
From 2004 to 2007 the median price of a home in Illinois increased 10.3 percent from $184,900 to $204,000. In the Chicagoland area, the median price increased 13.9 percent from $223,000 to $254,000. Most Illinois homeowners are experiencing very healthy long-term gains in the value of their homes. Owning a home remains the single best investment over the long term providing wealth accumulation especially for those who keep the home for a typical six to 10 years. See YourIllinoisHome.com, Market Facts.
- A house is a place to make a home, not just a buck.
Most homebuyers don't buy a house to flip it. They buy it to live in. The value of strong communities, rooted families, civic pride, comfortable retirement and a higher quality of life can't be expressed on a balance sheet.
- $11.9 billion = economic impact of Illinois residential real estate sales.
A 2007 study by Chicago-based RCF Economic and Financial Consulting, Inc., calculated the dollar figure for direct and indirect expenditures caused by a home sale in Illinois. These expenditures have ripple effects for local and state economies—pumping $11.9 billion into the Illinois economy annually. The study found total direct expenditures per home sale are $28,413. For example, a buyer will often purchase new furniture and appliances or the seller may pay for painting and repairs. Other affected industries include movers and warehousing, lenders, insurance and title companies.
- There are hundreds of reputable mortgage lenders ready to do business.
Buyers with good credit and a realistic view of what they can afford should have an easier time obtaining mortgage approval. First-time homebuyers can obtain a low-cost loan and down-payment assistance through the Illinois Housing Development Authority as well as the Illinois Association of REALTORS® Partnership for HomeOwnership Foundation. You can find these programs in "Buying a Home" at www.yourillinoishome.com
- The market favors Illinois' first-time buyers.
First-time homebuyers in Illinois are younger and have higher incomes. They're typically 25 to 34 years old and earn a median income of $63,100 (which is 7.7 percent higher than the national average of $58,573). They made up 37 percent of all Illinois homes purchased. And there’s currently plenty of inventory for first-time buyers to choose from. Source: 2007 Profile of Illinois Home Buyers and Sellers
- Owning a home builds wealth in a way that renting can’t.
According to the Federal Reserve Board, the average renter's net worth is $4,800, while the average homeowner’s net worth is $171,000. Clearly it pays to own a home.
- It’s prime time for second homes.
Savvy investors and prospective retirees know real estate is important to their portfolios. About one-third of all home sales are second homes or vacation properties and Illinois has plenty of inventory and desirable locations for those seeking them.
- Getting help from an Illinois REALTOR® is a smart financial decision.
You don't have to go it alone. REALTORS® are the experts at bringing buyers and sellers together and have the contacts to help speedup your transaction. Local REALTORS® really know their market, how to price a property, and negotiate for their clients. Make sure a real estate professional—a REALTOR®— guides you through the complex process of buying or selling a home.
- Now is a good time to buy.
Conditions are ideal for buyers with prices moderating, low interest rates and a good supply of homes available. If you’re a buyer, this market is for you. If you are a seller, be patient and price your home correctly. Competitive pricing is important. Experts agree, well-priced homes sell faster. Every market is different. Be sure to talk to a local REALTOR® to find out how your area is performing.
Visit www.yourillinoishome.com for more information on all these facts