How's The Market?

Being a real estate broker, I often get the question, "How's the market?" While I would love to respond, "IT'S GREAT, looking for a house?" we all know the reality. But, the truth is, the housing market IS showing signs of recovery in terms of sales volume.  Illinois sold 5,487 houses this past January, close to the 5,588 sold January 2010 but substantially more than the 4,808 sold in January 2009. Considering that the housing market in early 2010 was strongly influenced by the homebuyer tax credit, the sales volume for this past January is fairly promising.

The downward pressure on housing prices, however, is still substantial with Illinois seeing a 6.21% drop in median prices from last January (Chicago down 9.71%). There is still a great deal of distressed property flooding the market putting that downward pressure on prices.

On the positive side, buying a house still hugely affordable. In fact the housing price is trending back to the early 2000s. In addition, the 30-year fixed mortgage rate is still around 5%. So if you are renting, now is a good time to buy that first home. In fact, because the rental market has been hot, renters will likely see rental price increases, pushing consumers back into the housing market.

It's a good time too for investors. Whether buying rental units, multi-unit buildings or detached, single family homes, there are great deals out there, especially if you are a do-it-yourselfer. Turn around and rent that property instead of selling it. With renter households increasing by 3.5 million from 2006, there is a great demand for rental units.

The median house prices are expected to be higher for March and April than January for the Chicagoland area as well as Illinois. A good sign of recovery in the housing market. Let's just decrease the unemployment  rate and it's full steam ahead!