How Supply & Demand Impacts the Real Estate Market

201660826-stm-eng-1046x1641Some Highlights:

  • The concept of Supply & Demand is a simple one. The best time to sell something is when supply of that item is low & demand for that item is high!
  • Anything under a 6-month supply is a Seller’s Market!
  • There has not been a 6-months inventory supply since August 2012!
  • Buyer Demand continues to outpace Seller Supply!
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 confident, informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

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

5 Reasons to Sell This Fall

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School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house. But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.

Here are five reasons why you should consider selling your house this fall: 

1. Demand Is Strong

The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market at 4.7-months.

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this fall.

Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. Last month’s new home sales numbers show that many buyers who have not been able to find their dream home within the existing inventory have turned to new construction to fulfill their needs.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae announced that they anticipate an acceleration in home sales that will surpass 2007’s pace. As the market heats up, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler. 

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.46% right now. Interest rates are projected to increase moderately over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. 

That is what is truly important.

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 confident, informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

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

Sales at Highest Pace in 9 Years!

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Some Highlights:

  • Sales of existing homes reached the highest annual pace in over 9 years at 5.29 million.
  • Inventory remains below the 6-month norm and prices are still on the rise.
  • Interest rates are at a historic low of 3.48%.
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 confident, informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

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

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

spring season

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.

Years-To-Save-3-KCM-768x576

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