Market Trends and Home Selling: The Housing Market for First-time Home Buyers

It's no secret that the housing market for first-time home buyers is hot. But what are some of the reasons behind this? There are a number of factors that may be contributing to this increase in demand, including low interest rates and an improving jobs climate. Here are some trends from last month according to Illinois Realtors. 

“This year’s moving season has started out bright for sellers with their homes being purchased at top prices,” says Sue Miller, President of Illinois REALTORS® and designated managing broker of Coldwell Banker Real Estate Group in McHenry. “But the future remains overcast for those trying to purchase their dream home due to the continued record low inventory of available housing of all types.”

• The monthly average commitment rate for a 30-year, fixed-rate mortgage was 2.95 percent in May 2021, a decrease from 3.06 percent the previous month, according to the Federal Home Loan Mortgage Corp. In May 2020, it averaged 3.23 percent.

• Last month, 12,768 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, a 63.5 percent increase from the 7,809 homes sold in May 2020.

• The median home sale price in May 2021 was $310,000 in the Chicago Metro Area, an increase of 19.2 percent from $260,000 in May 2020.

• It took an average of 38 days to sell a home in April, down from 53 days a year ago.  Homes for sale totaled 24,749, a 48.7 percent decline from April 2020 when there were 48,232 homes on the market.

• According to the data, home sales in the Metro East MSA (Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair counties) totaled 847 sales, a 27.6 percent increase while the median price rose 5.0 percent to $156,900. In the Carbondale-Marion MSA (Jackson and Williamson counties) home sales totaled 124, a 39.3 percent increase. The median price increased 7.7 percent to $118,500.

McHenry Savings Bank offers loans to fund your major purchases and make your dreams reality.

Are you ready to purchase a home, or refinance your existing mortgage? We can customize a financing plan to your specific needs using a variety of loan options including:

• Fixed Rate Loans
• Adjustable Rate Loans
• Jumbo Loans

Due to increased call volume, please call 815-385-3000 or email loans@mchenrysavings.com directly for assistance. We are working to respond to all of our clients as quickly as possible during this time. If you're looking for a new home, our mortgage calculators can help you determine how much your estimated monthly payment will be. The calculator automatically recalculates anytime you press the tab key after making a change to an input field and is easy to use with just one click of the mouse button. We hope this helps make finding that perfect house or condo easier than ever before! McHenry Savings Bank is an Equal Housing Lender. NMLS #630527.

 

Sources:

https://www.illinoisrealtors.org/blog/hot-market-tightening-inventory-meant-faster-sales-higher-prices-in-may/