REAL ESTATE MARKET SNAPSHOT: Housing Supply Continues to Drop; Prices are on the Rise

According to key indicators in a report provided by Midwest Real Estate Data LLC for Three Rivers Association of REALTORS®, it is predominantly a seller’s market in Will and Grundy Counties. Inventory levels fell 17.9 percent from 2,995 units to 2,459 units or a 3.1 month’s supply. Also on the downward slide is market time which is at 64 days compared to 70 days a year ago. The median sales price is now at $210,000 - up from $200,000 at this time a year ago. Multiple-offer situations over asking price are not uncommon in many communities. The report cites a favorable economy and the low unemployment rate as contributing factors toward these developments. Another reflection of the strong employment growth is the decreasing percentage of homes closed that are either foreclosures or short sales. Through July of this year, 9.5 percent or 87 out of 911 closed home sales fell into one of those categories. In 2016, it was 12.3 percent.

The effect of the shortage of new construction particularly in the median to upper median price range is being felt primarily among first-time buyers as the number of entry-level homes available is at a premium. Normally, new home development provides an important link in the chain that enables many home owners to move on, freeing up the supply of homes at every level. However, despite these circumstances, Three Rivers Association of REALTORS® leadership believes that it is still advantageous for buyers to pursue their dream of home ownership. Association President-elect Ken Pytlewski noted that lenders are also loosening up on mortgage qualification requirements as well as offering new loan Programs, giving buyers the ability to purchase with a minimal down payment.

The City of Joliet is having a Housing Expo on September 9th during which buyers can meet with

lenders and REALTORS® who can assist them in the home buying process. There will also be

information about money that is available to help you with your down payment.

You can get more information about the Expo by calling 815-722-0722, or visit the Three Rivers Association of Realtors website.

2016 Award Recipients

The Three Rivers Association of REALTORS® has chosen the 2016 recipients of four awards that are given out.  Three awards are given annually and the fourth “Lifetime Achievement” award is given occasionally, when a member is recognized by peers for a lifelong effort in Real Estate, community involvement and volunteering.

This year’s recipient of the Lifetime Achievement Award is Rosalie D’Andrea, a lifelong resident of Joliet.  Rosalie began her working career at the J.F. Messenger Company working for Neil Houbolt in 1961 at the age of 16.  This career led her to Service Cartage in Lemont and D’Andrea Construction Company in Joliet 1968-1978.  Rosalie received her Real Estate license in 1972, and broker’s license in 1974, first with Key Realty and later with  Bell Realty.  In 1991 she became manager at the Honig Realty office in Joliet.  To this date, Rosalie manages the Coldwell Banker Honig-Bell office in Joliet.

Rosalie’s community involvement spans 30 years.  Elected to the Joliet City Council in 1987, she served on the Will County Expedition Authority, which oversees the Rialto Theater, for 12 years.  She also served on the Will County Center of Economic Development Board’s City Center Committee 1991-2007, committed to volunteering at the Forest Park Community Center and the Warren Sharp Community Center, and served on the Three Rivers Association Board of Director’s.

Debbie Prodehl received the REALTOR® of the Year Award for 2016.  Debbie is a manager and Regional Vice-President for Coldwell Banker Honig-Bell.  She is currently the chair of Business Issues & License Laws, a committee of the Illinois REALTORS.  Debbie was the President of Three Rivers Association in 2015.  Prior to serving as President, she was a Board Member officer for four years and also served as Secretary/Treasurer and President-Elect.

Debbie graduated from Lockport High School in 1982 and began her career into the real estate business in 1991, receiving her managers broker’s license in 2005.  She resides in Homer Glen with her husband Leo, and has two children Stephanie and Jonathan.

Mike Montgomery received the 2016 Affiliate of the Year award.  Mike is currently a mortgage loan originator with Stearns Lending in Naperville.  Mike began his career in the mortgage industry in 1985 and held positions ranging from underwriting to packaging and selling loans, and administrator to loan officers.  Mike has been active at Three Rivers Association for the past four years, volunteering in many committees, and is currently the Chair of the Affiliates Committee.   Outside of real estate, he is involved in the Chamber of Commerce in Plainfield, Naperville and Romeoville.

Gibby Kirby received the 2016 Rising Star award.  Gibby grew up in Central Illinois and attended Illinois State University, moving to Joliet 5 years ago.  He began working at Realty Executives Success as the office accountant and administrator.  Gibby received his real estate license 2 years ago, and stepped right in to participate with the associations committees and activity.  He is currently Chair for the Communications Committee and Vice-Chair of YPN Committee.  Outside of his career in real estate, Gibby volunteers at multiple animal rescue groups, and is involved in community theater and dance.

Three Rivers Association is very proud to present these awards and is grateful for the participation of these individuals chosen.

Home Sweet Homeowners Tax Advantages

With the current housing market in an upswing, many people are becoming new homeowners. To those who have just purchased their first home - congratulations! Being a homeowner helps fulfill the American dream! Don't forget about one of the new benefits you'll enjoy....tax breaks!

Take advantage of these homeownership-related tax deductions and strategies to lower your tax bill and increase your refund.

• Mortgage Interest Deduction - One of the best deductions itemizing homeowners can take advantage of its mortgage interest deduction. Interest you pay on your mortgage (up to $1 million) is deductible when you use the loan to buy, build, or improve your home.
• Prepaid Interest Deduction - Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
• Property Tax Deduction - You can deduct the real estate property taxes you pay on Schedule A. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house in 2015, check your settlement statement to see if you paid any property taxes at closing. Those taxes are deductible on Schedule A, too.
• PMI and FHA Mortgage Insurance Premiums - You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later and the deduction is reduced if your adjusted gross income exceeds $100,000. besides private mortgage insurance, there's also government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction.
• Energy-Efficiency Upgrades - The Non-Business Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades. The credit carries a lifetime cap of $500 (less for some products), so if you've used it in years past, you'll have to subtract prior tax credits from that $500 limit.

At Three Rivers Association of REALTORS®,  we advocate to protect real estate-related tax deductions, aim to address real estate issues in the community, and work to provide a good housing market for the Joliet area. To learn more about us, please visit our website! And if you are ever unsure about how to properly complete your tax returns, make sure to consult a tax professional for help.

Get a Head Start on the Winter Housing Market

Spring and summer may be traditionally known as a buyer’s market, but did you know winter is the best time to sell your home? According to REALTOR® Magazine online, a new study by the real estate brokerage Redfin found that sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate.

The study found that historically, February is the best month to list your home for sale, so now is a great time to get a head start on the market! Buyers are motivated to close, so a larger percentage of homes listed in February sell within 90 days, sometimes even above their list price! Listing during the winter months has resulted in higher percentages of above-asking-price sales than listing during any others months, aside from April and May.

So why do sellers benefit from listing in the winter? A less competitive market! Since most sellers wait until spring to list their homes, listing yours in the winter means it will stand out. More potential buyers will be looking at your property, and these wintertime house-hunters are motivated to buy. There are fewer “window shoppers” in the winter, so when a buyer comes to look at your home, they are generally pretty serious about buying.

If you’re a buyer looking in the winter, it’s good news for you, too! Just as the seller pool is smaller and less competitive in the winter, the same can be said about buyers. Since most people prefer to do their house-hunting in warmer months, sellers may be more willing to negotiate on price or be flexible on terms with a wintertime buyer.

Whether you’re buying or selling this winter, trust the Three Rivers Association of REALTORS® to provide you with superior service! The Three Rivers Association of REALTORS® is a professional trade association of over 1,000 licensed real estate agents. For more information, visit our website today!  

Three Rivers Association of Realtors Can Help!

Located in Joliet, Illinois, Three Rivers Association of Realtors is a non-profit organization that serves more than 950 realtor and affiliate members. Our association represents the realtors in Will and Grundy County and helps resolve a range of industry related disputes.

Working closely with municipal leaders and congress members, it is our mission to help provide a good housing market for the community. Three Rivers helps realtors in the area with a wide, but industry-specific range of services. Our multiple listing service, education programs and extensive political action programs are just a few of the services we provide. Take a look at what our non-profit can offer:

• Speak to and address real estate issues
• Enhance the public image of our members
• Consumer outreach
• Provides opportunity for professional growth and education
• Communicates information to our members to help them succeed in their business activities
• Identifies, anticipates, and addresses economic and marketing trends in the real estate industry
• Works with congress on issues like mortgage interest deduction, flood insurance and all -effect home ownership
• Public relations and government affairs

Three Rivers works with the Illinois Association of Realtors and the National Association of Realtors in an effort to provide members with the tools necessary to remain successful. We aim to enhance the ability and opportunity for realtors to conduct their business successfully, ethically, and to promote the preservation of the right to won, transfer and use real property.

Changes in the real estate industry are ever evolving; let Three Rivers help you navigate your real estate issues and the housing market today! To learn more about Three Rivers Association of Realtors, give us a call at 815-744-4520 or visit www.trarealtors.net.