Spring Housing Market Update
For those considering buying or selling a home in the Chicagoland area, melting snow and emerging tulips are signs that it’s time to dive into the real estate market. But is this really a good time to buy or sell a home? According to real estate experts, it is. Here’s why:
When consumers are confident about the economy, they’re confident about spending. And when consumers feel comfortable spending, the housing market does well. Various indexes report record increases in consumer confidence ranging between 10- and 30-year highs.
Home Price Increases
- Historically, normal appreciation is about 3.6%. Case Shiller year-over-year price changes for the twenty-city composite show that home prices are up over 5%.
- As reported on the latest FHFA survey, prices across the entire country year over year have gone up rather dramatically.
- According to CoreLogic, the average home prices increase across the US was 7.2%, which is double the historic norm.
Rising Interest Rates
Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors project about another half percent increase mortgage rates, up to 4.63%. When interest rates rise, the expectation is that the housing market will be curtailed. However, many housing experts are not expecting that to impact the current housing market.
- Other factors that are driving housing prices up, like low inventory, are not showing signs of change.
- Pulsenomics asked experts across the country at what level will the thirty-year fixed mortgage rate significantly slow home value appreciation? Their response indicates that they do not believe it will impact home prices until those rates hit 5%, which is not expected to occur until the second half of 2018.
If the first signs of spring have you questioning if this is the right time to buy and sell a home, the answer is yes! Contact the Mittelstaedt Team today to get started today.