Chicagoland Housing Prices Set to Rise in 2015
Chicagloand housing prices are set to rise by 4.4% in 2105, according to Case-Schiller, CoreLogic. Great news as this could mean an increase in home value for Naperville luxury home sellers.
As real estate markets throughout the United States are on the path to a positive outlook and recovery after the housing recession, experts agree that buyers are ready to invest in the American Dream once again.
Here are some reasons why the experts are optimistic this year:
Fannie Mae and Freddie Mac Have Changed Their Lending Guidelines
Fannie Mae and Freddie Mac revised their lending guidelines in December 2014 to help homebuyers buy a home. The revisions include lower credit thresholds and mortgage rates, and quicker turnaround times. This move will increase demand, thereby increasing home prices in Chicagoland.
Companies Are Hiring Again
Companies are hiring again, which is always a good sign for an improving economy. With new jobs available in the Naperville and Chicago areas, the stability will help potential homebuyers invest in a home.
Rents Are High – Rent vs. Buy
Rent prices skyrocketed. When many homeowners lost their homes, they had to rent one. This increase in demand pushed rental rates up to a higher bracket. Renters are interested in owning their own homes and increasing their equity.
Millennials and New Home Buyers Have More Options For Home Ownership
Millennials, 25 to 29-year olds, are entering the homebuying market due to the availability of better jobs. During the recession, they were just entering the job market at low-level pay. Many chose to move in with their parents or live in a multi-family home. With the improvement of job availability and new mortgage options, they are ready to move out of their ‘parents’ basement’ and buy their own homes.
More Naperville Homes For Sale and Chicagoland Homes For Sale
Naperville and Chicagoland homeowners wanting to sell their homes, held back until the market improved and home values rose. With the potential demand, values of homes could increase, causing more homeowners to put their homes on the market.
Home Builders Prepared For Higher Demand
Builders long ago realized that when the housing market improved, especially with the millennial generation coming into their own, the demand for more homes would be inevitable. The new home building market is strong and ready for homebuyers to choose their custom features.
The Federal Housing Commission (FHA) Will Cut Fees On Mortgages
President Obama outlined his plan to make homeownership more affordable and sustainable in January 2015. The plan will help credit-worthy homebuyers will by reducing their annual mortgage insurance premiums by 0.5 percentage point from 1.35 percent to 0.85 percent.
According to the White House’s website, for the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment.
All these factors project a healthy improvement for both homebuyers and home sellers in the Naperville and Chicago real estate market.
If you have any questions about buying a Naperville home for sale or are interested in selling your Chicago area home, please do not hesitate to contact me, Teresa Ryan at 630-275-7575. You can search for homes throughout Chicagoland at www.RyanHillRealty.com.