Thinking of Selling? The Market Needs Your Listing!!

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The housing market is really heating up and buyer demand is dramatically increasing as we enter the spring season. However, one challenge to the current market is a major shortage of inventory. Below are a few comments made in the last month by industry experts.

Lawrence Yun, Chief Economist of NAR

“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau.”

Jonathan Smoke, Chief Economist of Realtor.com

“Low inventories and tight credit will limit the gains we will see in 2016. However, given the level of pent-up demand evident in web activity and stated buyer intentions for 2016, we should see this spring materialize as the busiest season of sales since 2006.”

Rick Sharga, Ten-X’s EVP

“Inventory is too low to support much higher sales. There’s virtually no inventory available at the entry level, and single family housing starts and permits continue to languish at levels far below where they should be at this point of the recovery.”

David Crowe, Chief Economist – National Assoc. of Home Builders

“Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.”

Freddie Mac

“Challenges remain, with low housing supply and declining affordability being a key concern in many markets.”

How can I help you achieve your real estate goals?

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

Ready to buy or sell a home? Call or text me today!
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner

 

Top Three Reasons To Make Your Move

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The spring season has kicked off, and we are full steam ahead into the strongest real estate market in nearly a decade. If you have been on the fence about buying or selling your home, here are some important points to consider:

For Buyers

1. Increasing Prices. Home prices in Illinois have increased steadily every month for the past 41 months, and experts expect this trend to continue for the rest of 2016.

2. Historically Low Rates. Mortgage rates are around four percent right now, providing buyers with an incredible opportunity to keep monthly payments to a minimum.

3. Rents are Rising. RealtyTrac’s 2016 Rental Affordability Analysis found that buying is more affordable than renting in Cook County. The higher rents go, the more difficult it becomes to save for a down payment.

For Sellers

1. Less Competition. The number of homes for sale in Illinois in January declined 12.6 percent from January 2015, meaning there are even fewer homes to meet the incredible demand.

2. Shorter Market Time. Because demand is so high, available properties are seeing multiple offers after spending fewer days on the market.

3. Positive Price Appreciation. Homeowner equity, generally your largest source of wealth, has increased across Chicagoland due to the consistent increase in home prices.

If you are considering buying or selling in 2016, let’s set up a time to meet. We can discuss your specific needs and the conditions in your local market to develop a plan that’s right for you.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen: I’m a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

 

The Top Reasons Why Americans Buy Homes

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Last week, the inaugural “Homebuyer Insights Report” was released by the Bank of America. The report revealed the reasons why consumers purchase homes and what their feelings are regarding homeownership.

Consumer Lending Executive, D. Steve Boland, explained:

“Homebuyers today are motivated by both emotional and practical reasons. Nearly all want more space, but a majority of homebuyers, especially those purchasing their first home, are also looking for a place to call their own, put down roots and make memories. They value the emotional benefits of owning a home as much as the financial ones.”

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Boland went on to say:

“The path to homeownership is a journey and can be as overwhelming as it is exciting. For many people, this is the single most significant financial transaction they will ever make.”

This was evidenced in the report when they asked today’s homebuyers to define homeownership. Their answers tell the whole story:

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Bottom Line

Homeownership has always been a part of the American Dream and survey after survey confirms this will always be the case.

How can I help you achieve your real estate goals so that you can live YOUR life?

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

Are you ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

 

 

Over Half of Americans Planning on Buying in the Next 5 Years

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According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations.

Those Looking to Buy

  • 74% of those looking to buy a new home will consult with a real estate agent
  • 59% said they will visit online real estate websites
  • 37% will seek recommendations from friends and family
  • 78% plan to get pre-approved before seriously searching for a home

 Those Who Already Own

  • 75% of current homeowners set a budget before looking for a home, and 16% ended up spending less while 13% went over their budget.
  • 63% of American homeowners spent under six months looking for a new home before they made a purchase.
  • 8% bought their home without participating in an active real estate search – or even any plan to buy at all – because a specific property caught their attention.

The last point is very interesting: Of those who purchased a home, 8% bought “without any plan to buy at all”. A property caught their attention and they acted on it.

Why Are More People Not Planning Their Next Move?

Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? An article by Fannie Mae reveals evidence that a large number of homeowners are dramatically underestimating the equity they have in their current home. The report explains that:

“Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes.”

Bottom Line

Perhaps it is time to sit down and talk with me to determine the actual equity you have in your house and to take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted.

How can I help you achieve your real estate goals so that you live YOUR life?

About Carol Juntunen: I’m a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

You Can Save for a Down Payment Faster Than You Think

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In a study conducted by Builder.com, researchers determined that nationwide, it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home.

Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage of income a renter spends on housing in each state, and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.

According to the study, residents in South Dakota are able to save for a down payment the quickest in just under 3.5 years. Below is a map created using the data for each state:

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What if you only needed to save 3%?

What if you were able to take advantage of one of the Freddie Mac or Fannie Mae 3% down programs? Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years in many states as shown in the map below.

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Bottom Line

Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Let me help you evaluate your ability to buy today.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
I’m a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy or sell? Contact me:
Website: www.caroljuntunen.com 
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

Building Wealth: First Rung on the Ladder is Housing

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How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is “an online resource for the most rigorous research and practical information on how a quality, stable, affordable home in a vibrant community contributes to individual and community success”.

A recent story they published, The First Rung on the Ladder to Economic Opportunity Is Housing, discussed the importance of having affordable housing available to as many families as possible because:

“The ladder to economic success can stretch only so high without the asset-building power of homeownership.

Home equity provides Americans with the ability to send their children to college with less student loan debt and is the primary source of funds for retirement. Half of the assets of Americans over age 55 are in their home.”

Bottom Line

I have often posted that the net worth of a family owning a home is 45 times greater than that of a family that rents. That is not a coincidence.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
I'm a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

 

 

 

Real Estate: 2016 Will Be the Best Year in a Decade

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A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.”

Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

The key indicators that have given Freddie Mac such a positive outlook are:

  • Low interest rates
  • A resilient labor market
  • An increase in household formations
  • A projected increase in newly constructed homes

Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying, selling or renting, now may be the time to sit down with a real estate professional to discuss the new opportunities that are arising.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I'm a with Baird & Warner in the Chicago northwest 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.

If you're ready to buy, sell or rent, contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

Rent or Buy: Either Way You’re Paying A Mortgage

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There are some renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

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Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217 

 

Don’t Wait! Move Up To Your Dream Home Now!

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Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here is a chart detailing this point:

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According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%.With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.

Act now to get the most house for your hard-earned money.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I'm a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website:  www.caroljuntunen.com
Email:    carol.juntunen@bairdwarner.com
Cell:     224-523-2217  

 

Don’t Be Fooled… Homeownership Is A Great Investment!

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Highlights

  • Harvard University’s Joint Center of Housing Studies recently released the top financial & emotional reasons to own a home.
  • Owning is a good way to build up wealth that can be passed along to your family as it is usually a form of “forced savings.”
  • You’re paying for a house whether you own or rent, but owning gives you control over your living space.

Let’s discuss your options!

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with Baird & Warner in the Chicago northwest 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.

Ready to buy, sell or rent? Contact me:
Website:  www.caroljuntunen.com
Email:    carol.juntunen@bairdwarner.com
Cell:     224-523-2217