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.

4 Reasons you Should Buy Instead of Renting

Purchasing a home has long been seen as the American dream. The pride of ownership and knowing that your dwelling is completely under your control is very appealing. The housing market crash of 2008 has made many renters leery about buying a home, fearing that it will be too expensive and risky. However depending upon where you purchase a home, the amount of your down payment and the interest rate you are able to obtain, purchasing a home might actually be cheaper. Here are four additional reasons you should consider buying instead of renting.

1.     Create your own space – Unlike renting, where you could be charged for every nail hole or floor scuff you leave after vacating the premises (and don’t even consider repainting the walls!) – when you own a home, you are in control of designing your space to suit your tastes. This means you can remodel, repaint, hang pictures, shelves and light fixtures, and you don’t have to worry about anyone saying you can’t.

2.     Fixed monthly payment – While your rent can go up at any time, if you have a fixed rate mortgage, your monthly payments will stay the same for the life of your loan. Additionally, if interest rates go down, you can re-finance your loan for an even lower monthly payment. In comparison, your rent will most likely never be any lower than what you paid your first month.

3.     Tax breaks – Another great benefit of having a mortgage is the fact that you can write your interest payments off on your annual taxes. Additionally, you could also reap tax benefits for having energy efficient products in your home.

4.     Home equity – Unlike rent, your home is constantly building equity as you pay down your mortgage. Every dollar paid towards the loan’s principal is a dollar of equity built in your home. When you reach 20% equity paid, you can borrow against your home for other investments or home improvements. Additionally, that equity will add to the value of your home if you decide to resell.

Are you considering purchasing a home in Joliet or the surrounding communities?  Contact the professionals at Three Rivers Association of Realtors to find a real estate agent to guide you through the home buying process. We are a non-profit organization serving more than 1,000 realtors and affiliate members.

How To Get A Mortgage With Student Loan Debt

Time Magazine reports that the Student Loan Crisis is worse than ever.  More than 25% of students are graduating with too much student debt and the overall debt number has exceeded the $1 trillion mark.  While this issue may not seem related to being a homeowner, it is affecting the housing market in surprising ways.

When you apply for a mortgage, student loans can be the make or break factor for getting approved.  If you have student loans and are looking to buy a home, you’re in luck! Follow our advice for affording a mortgage while balancing student loans:

Managing Loans

If you are paying a high interest rate on your student debt, it may be time to look into refinancing and consolidating.  Refinancing your student loan reduces your debt-to-income ratio, lowers your monthly payment, locks in low interest rates and improves your chances of being approved for a mortgage.

Elevating Credit Score

How can you build good credit?  If you have student debt, one of the most effective ways to improve your credit score is by paying off loans.  Start by paying your student loans on time each month and make sure you keep your monthly balances low.  If you avoid paying off your balance each month, you might be faced with a fee.  

Reduce Your Debt

Lessening your total debt sounds harder than it is.  If you are ready to purchase your first home, cutting back on monthly expenses is a great place to start.  Reduce your living expenses by eating out less, avoiding online shopping or even taking on a part-time job for some extra cash.  All it takes is some money management and you can be a homeowner!

Don’t let student loans affect your ability to buy a home.  Contact the professionals at Three Rivers Association of REALTORS® for professional advice!  It is our goal to provide real estate solutions for those in Will & Grundy County.  For more information, head over to our website or give us a call at 815-744-4520!