The Difference An Hour Makes This Spring

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Some Highlights:

  • Sunday, March 13th, we “Spring Forward” one hour for Daylight Savings Time (except for our friends in AZ).
  • Every hour in the United States, 624 homes will sell and 118 homes will regain positive equity.
  • The median home value will also increase each hour in the United States by $1.84.

How can I help you achieve your real estate goals this spring?

About Carol Juntunen:
My name is Carol Juntunen and I'm a Realtor® with Baird & Warner.
My intention is to provide insights and information to empower you to make informed realestate choices and decisions, and guide you through the home buying, selling or renting process.

Contact me:
Carol Juntunen
224-523-2217
Website: www.caroljuntunen.com

Yes, Home Prices Are Rising. No, a New Housing Bubble is NOT Forming!

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We recently reported that home prices are continuing to rise across most of the nation. This has created concern in some pundits that a housing bubble, like we saw ten years ago, is forming again. We want to explain why these concerns are unfounded.

The current increase in home values can be easily explained by the theory of supply and demand. Right now, the number of families looking to purchase a home is greater than the supply of homes on the market.

Here is a chart that explains how the months’ supply of housing inventory impacts home values:

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According to the latest Existing Home Sales Report from the National Association of Realtors, there is currently a four-month supply of inventory. That puts us in the blue section of the above graphic. Home prices should be appreciating.

The difference in 2006…

A decade ago, the demand for housing was artificially boosted by lending standards that were far too lenient. Today, the strength of the demand for housing is legitimate, as lending standards are nowhere near what they were a decade ago.

For proof of this, let’s look at a graph of the Mortgage Bankers’ Association’s Mortgage Credit Availability Index:

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The higher the number, the easier it was to get a mortgage. We can see that from June 2005 to June 2007, mortgage standards were much more lenient than they have been over the last nine years.

Bottom Line

Today’s price increases, unlike those a decade ago, are the result of qualified buyer demand exceeding the current inventory of homes available for sale. Once the supply increases, prices will level out.

How can I help you achieve your real estate goals?

 

 

About Carol Juntunen:
I'm a Realtor® with Baird & Warner in the Chicago NW suburbs.
My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Contact me:
Carol Juntunen
Baird & Warner
Realtor® & Broker Associate
CNE, CSC, e-PRO
carol.juntunen@bairdwarner.com
www.caroljuntunen.com
224-523-2217


Housing Market To “Spring Forward” This Year

 

SpingForward_2016Just 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.

The National Association of REALTORS (NAR) recently reported that the top 10 dates sellers listed their homes in 2015 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.

Bottom Line

If you are planning on selling your home in 2016, let’s chat! I’d love to help you evaluate the opportunities in your market.

Contact me: 
Carol Juntunen
Realtor® with Baird & Warner in Chicago NW suburbs
Cell:  224-523-2217
Website: www.caroljuntunen.com