RE/MAX Brokers Expect Metro Chicago Real Estate Market to Deliver Moderate Gains in Transaction Volume and Home Values in 2015
Chicago, IL, April 01, 2015 --(PR.com)-- As the metropolitan Chicago real estate market moves quickly toward the busy spring season for home sales, RE/MAX brokers across the area have a firmly upbeat outlook. They expect 2015 to generate more home sales and higher home values than were seen in 2014.
The median sales price for homes in the Chicago metro area in 2014 was $195,000, or 9 percent higher than the median sales price in 2013 and 22 percent more than the 2012 median price. Looking ahead, the RE/MAX brokers polled for this report anticipate prices will rise about 5 percent over the course of 2015 though stronger gains are certainly possible.
“Home prices in our area were fairly stable over the last half of 2014 after achieving solid gains during the spring market,” reported Doug Hanscom of RE/MAX Properties in Western Springs, Ill. “This year is starting off even stronger than last. We’re seeing more properties going under contract at close to their asking price.”
One reason for the strong start to the 2015 housing market, according to a number of RE/MAX brokers, is a higher level of consumer confidence.
“There’s a lot of positive energy in our market right now,” said Marion Digre of RE/MAX in the Village, Realtors®, Oak Park, Ill. “Traffic at open houses has been strong. New listings are getting a lot of showings, and several homes that didn’t sell last year have already gone under contract with multiple offers.”
In contrast, the market for homes priced at $1 million or more presents a mixed picture, according to Mimi Burke with RE/MAX of Barrington.
“Demand for homes in the $1 million plus category has rebounded during the first quarter. However, the supply of listings priced close to $2 million and above in our area continues to exceed demand, so asking prices are under pressure,” Burke said. “One trend we’ve noticed is that luxury buyers currently are more interested in the quality of finishes than in the square footage of the home. There’s less desire to maintain and pay taxes on a huge house. Sellers need to be aware that buyers’ priorities are changing.”
In Oregon, Ill., Carla Benesh with RE/MAX of Rock Valley sees sellers adjusting to market realities.
“They are taking a more realistic and flexible approach, which is helping create a stronger market. Actually, sellers and buyers are more decisive these days than they were a year ago,” she said.
An improved employment outlook, with more jobs being created and the percentage of unemployed workers now considerably lower than a year ago, has been a key contributor to that increased decisiveness. That, in turn, is a sure sign of a strengthening real estate market.
“When people are confident they can maintain their income stream, meaning that either their job is more secure or that other job openings are plentiful, they’re more comfortable making the major financial decisions involved with buying and selling real estate,” said Matt Boemmel of RE/MAX Exclusive Properties in Chicago.
The improved employment outlook should encourage first-time buyers, who have been less of a factor in the housing market since 2008 than they were previously.
Jay Rodgers of RE/MAX Excels, Geneva, Ill., thinks first-time buyers will have ample motivation to purchase a home this year.
“The supply of rental units is tight, and rents are rising, while mortgage interest rates are still quite low but might not stay this low much longer,” he said. “Another positive factor is that lenders are doing more to help first-time buyers make a purchase even if they can’t come up with a 20 percent down payment.”
Also likely to play a key role in the 2015 housing equation, according to several RE/MAX brokers, are baby boomers eager to downsize.
“We’re seeing more interest from older homeowners making the move to something smaller, particularly to single-level dwellings,” said Tim Binning of RE/MAX All Pro in Bloomingdale, Ill. “Conversely, this year we are seeing fewer investors. The opportunities for them are more limited because the supply of distressed homes continues to decline.”
Moderately priced new construction homes will be especially popular this year, according to Val Hatzelis of RE/MAX 10 in Oak Lawn, Ill.
“There has not been a lot of new construction in the south suburbs yet; the recovery here has taken a little longer than in other areas. However, in the areas where new projects have gotten underway, the response has been excellent,” she said. “But this still remains a very conservative market. Home shoppers are looking for value and well-maintained homes. Properties selling at $220,000 to $250,000 are drawing a lot of attention. I expect improvement in our overall market this year but even a better market in 2016.”
As for the condo market, Oak Park and the North Side of Chicago are two areas where demand should be strong, according to brokers who know those areas.
“I think three-bedroom, two-bath condos will be especially hot,” said Boemmel, discussing the North Side market. “They appeal both to empty nesters who want to downsize and to younger buyers moving up from smaller units.”
The median sales price for homes in the Chicago metro area in 2014 was $195,000, or 9 percent higher than the median sales price in 2013 and 22 percent more than the 2012 median price. Looking ahead, the RE/MAX brokers polled for this report anticipate prices will rise about 5 percent over the course of 2015 though stronger gains are certainly possible.
“Home prices in our area were fairly stable over the last half of 2014 after achieving solid gains during the spring market,” reported Doug Hanscom of RE/MAX Properties in Western Springs, Ill. “This year is starting off even stronger than last. We’re seeing more properties going under contract at close to their asking price.”
One reason for the strong start to the 2015 housing market, according to a number of RE/MAX brokers, is a higher level of consumer confidence.
“There’s a lot of positive energy in our market right now,” said Marion Digre of RE/MAX in the Village, Realtors®, Oak Park, Ill. “Traffic at open houses has been strong. New listings are getting a lot of showings, and several homes that didn’t sell last year have already gone under contract with multiple offers.”
In contrast, the market for homes priced at $1 million or more presents a mixed picture, according to Mimi Burke with RE/MAX of Barrington.
“Demand for homes in the $1 million plus category has rebounded during the first quarter. However, the supply of listings priced close to $2 million and above in our area continues to exceed demand, so asking prices are under pressure,” Burke said. “One trend we’ve noticed is that luxury buyers currently are more interested in the quality of finishes than in the square footage of the home. There’s less desire to maintain and pay taxes on a huge house. Sellers need to be aware that buyers’ priorities are changing.”
In Oregon, Ill., Carla Benesh with RE/MAX of Rock Valley sees sellers adjusting to market realities.
“They are taking a more realistic and flexible approach, which is helping create a stronger market. Actually, sellers and buyers are more decisive these days than they were a year ago,” she said.
An improved employment outlook, with more jobs being created and the percentage of unemployed workers now considerably lower than a year ago, has been a key contributor to that increased decisiveness. That, in turn, is a sure sign of a strengthening real estate market.
“When people are confident they can maintain their income stream, meaning that either their job is more secure or that other job openings are plentiful, they’re more comfortable making the major financial decisions involved with buying and selling real estate,” said Matt Boemmel of RE/MAX Exclusive Properties in Chicago.
The improved employment outlook should encourage first-time buyers, who have been less of a factor in the housing market since 2008 than they were previously.
Jay Rodgers of RE/MAX Excels, Geneva, Ill., thinks first-time buyers will have ample motivation to purchase a home this year.
“The supply of rental units is tight, and rents are rising, while mortgage interest rates are still quite low but might not stay this low much longer,” he said. “Another positive factor is that lenders are doing more to help first-time buyers make a purchase even if they can’t come up with a 20 percent down payment.”
Also likely to play a key role in the 2015 housing equation, according to several RE/MAX brokers, are baby boomers eager to downsize.
“We’re seeing more interest from older homeowners making the move to something smaller, particularly to single-level dwellings,” said Tim Binning of RE/MAX All Pro in Bloomingdale, Ill. “Conversely, this year we are seeing fewer investors. The opportunities for them are more limited because the supply of distressed homes continues to decline.”
Moderately priced new construction homes will be especially popular this year, according to Val Hatzelis of RE/MAX 10 in Oak Lawn, Ill.
“There has not been a lot of new construction in the south suburbs yet; the recovery here has taken a little longer than in other areas. However, in the areas where new projects have gotten underway, the response has been excellent,” she said. “But this still remains a very conservative market. Home shoppers are looking for value and well-maintained homes. Properties selling at $220,000 to $250,000 are drawing a lot of attention. I expect improvement in our overall market this year but even a better market in 2016.”
As for the condo market, Oak Park and the North Side of Chicago are two areas where demand should be strong, according to brokers who know those areas.
“I think three-bedroom, two-bath condos will be especially hot,” said Boemmel, discussing the North Side market. “They appeal both to empty nesters who want to downsize and to younger buyers moving up from smaller units.”
Contact
RE/MAX Northern Illinois
Jim Merrion
847-428-4200
www.illinoisproperty.com
Jim Merrion
847-428-4200
www.illinoisproperty.com
Contact
Categories