Housing market looking up
A quick scan of the real estate market and u begin to notice it. Homes are selling.
“Prices are coming up; they are up about 9% higher than they were a year ago.”
No better way to see it than through the eyes of someone out in the market right now.
John has been looking for about six months. He’s put in some bids—“Four homes at last count and we haven’t been successful with any of them.” He said.
“We put an offer in on a home and we went over asking price and we still didn’t get it. And we are seeing that daily.”
A big shift from just a year ago when home sales were sluggish at best. It’s all in a way linked, employment is inching up, wall street’s doing better and so is main street. Chicago’s association of realtors has the numbers to back it up. In February alone listings under contract were up almost 47%.
“We’ve gone from basically five month inventory down to 90 day point of inventory.”
The reason: rates are good and rents are high. Plus you’re now beginning to see what’s been dubbed ‘Boomerang Buyers.’ Those who went through foreclosures or short sales getting back in the game…after restoring credit.
“We’re starting to see some of those but probably in a year or two, double the amount of buyers because of that.”
“People are starting to come back. If they went into foreclosure they kept the rest of their credit clean, their credit cards whatever.”
Just this week in Chicago– the announcement that last month was the busiest since 2008 with 1900 single family homes sold.
“No, we won’t be able to reach those prices we were before but 20% higher than a year ago.”
And with spring here the market will likely to heat up some more. Great if you’re a seller but starting to make it frustrating for buyers.