Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions. [Read more…]
Written by Kelly Maguire
Through the first six months of 2019, Chicagoland home sales are tracking below 2018 levels, with volume down 6.5% year over year. One factor behind the mid-year slowdown, according to @properties co-founder Thad Wong, is the so-called SALT cap, which put new limits on state and local tax deductions starting in 2018.
Under the new law, taxpayers who itemize are limited to deducting a total of $10,000 of state and local taxes. That means that many homeowners throughout Chicagoland can no longer deduct the full amount of their property taxes – traditionally one of the largest deductions taxpayers could claim. This has effectively increased the cost of homeownership.
To compensate, homebuyers have been driving harder bargains at the negotiating table, and the impact on home prices is being felt by sellers. Home price appreciation has been slowing both locally and nationally, despite the strong economy of the past few years.
Still, Wong remains optimistic. In the third episode of @/The Market, Wong and @properties co-founder Mike Golden note that the median home price for all of Chicagoland was still up through the first six months of the year, compared to the same period last year, despite the drag from SALT.
“If you look at the fact that the market [pricing] is relatively flat, it’s a win given the tax changes we’ve faced,” said Golden.
Wong adds that there’s reason to embrace a slowing market. “It feels like the market is taking a breather [which is healthy after the growth we’ve seen].”
Watch the video below for more insights and analysis. For more information about your local market, be sure to contact an agent.
When homebuyers begin their research, they want to see all their available options! In many cases, they will include both new construction and existing homes in their search; but is a new construction home really the house of their dreams? [Read more…]
There’s no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Here’s a look at why selling now is likely to drive the greatest return on your largest investment. [Read more…]
Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house. [Read more…]
As a homeowner, it’s always tempting to dream about the next big project you’re going to tackle. The possibilities are endless. Should I renovate? Should I refinance? Should I stay? Should I move? The list goes on and on. [Read more…]
Shifting trends and industry-leading research are pointing toward some valuable projections about the status of the housing market for the rest of the year. [Read more…]
Since June of last year, we have seen an increase in the inventory of homes for sale month per month. Every spring and summer, the inventory increases because people want to sell their home. For those with children, they may want to be in their new home for the beginning of the school year. [Read more…]