The spring market has kicked off!
The Baltimore Ravens won. The game was exciting, commercials were good and now we look forward to 2013. Superbowl games in the past have marked the beginning of the spring market for real estate, when buyers and sellers come out of hibernation. This benchmark is when we normally see the supply of housing inventory begin to increase.
However, in 2012 in the northwest suburbs we saw unexpectedly high demand, with bidding wars forcing home prices to rise slightly. We will see this trend continuing over the next few months as buyers continue to look for housing, specifically in the northwest suburbs. Homesellers become buyers, and look for similar deals on their purchase.
Palatine for example has seen months supply of inventory drop over 75% in the last two years, while demand is up 74% Concurrently we are seeing prices increase slightly, exhibiting that buyers are more savvy and sellers are more realistic. Selling now offers the seller a shorter market time and buyers the ability to purchase at market value.
According to the Case Shiller home price index, home prices across the nation have appreciated at a rate of 5.5%. Buyers are looking at these statistics and are making purchases now to avoid higher prices and higher mortgage rates. Over the last two months, mortgage rates increased 2/10 of a point from 3.32 to 3.53). That alongside the new Qualified Residential Mortgage (QRM) rules may force buyers to have much larger downpayment and much higher credit scores than histories past. The QRM will be announced later this year and are expected to take effect next year.
Buyers and sellers alike are preparing for the spring market. Dont wait until its too late. Take advantage of the low mortgage rates, buyer demand and low supply.
Holly Connors is a senior broker and founding member of @properties. For more information, Holly can be reached at 773.862.0200 or firstname.lastname@example.org. You can also visit her website at hollydanielsonconnors.com.