Affordability is at an all-time high and those who can get financing should make their move. Just today Freddie Mac reported interest rates hit a new year-to-date-low at 4.63 for the region that includes Illinois.
“This really is the moment both for buyers and those who want to sell and move on because later this year the cost of homeownership will go up. Interest rates are expected to rise above their historic lows and the cost to borrow will rise, too, with changes proposed in the lending market such as higher down payment requirements,” said REALTOR® Sheryl Grider Whiterhurst, president of the Illinois Association of REALTORS® in the IAR housing report also released today.
Home sales in Illinois this April were predominately in the lower price ranges (67.6% below $200,000), affecting the median price, which ticked up 4.7% from March to $136,066 but was down 12.2 percent from a year ago. A similar trend was seen in April in the Chicagoland region.
The market is under-performing despite these ideal conditions for buyers, according to Lawrence Yun, chief economist for the National Association of REALTORS®. Said Yun in the NAR report: “Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger. Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
Given unnecessarily tight credit conditions, NAR expects existing-home sales should trend up unevenly through next year.