– Dick Greenwood, Director, Builder Marketing
“It’s just arithmetic” as Mark Zandi, Moody’s chief economist likes to say:
- At about 3.5%, the 30-year fixed rate mortgage is at its lowest point in two generations.
- Tight inventory and multi-bidding have led to shorter days on the market. In many markets, including Chicago, a home fairly priced sells within a week with multiple offers.
- Illinois home sales increased in the 1st quarter of 2013 over previous year levels and prices have also increased as much as 9% in many Chicago markets.
- The dollar volume of mortgage lending, while still depressed compared to historical averages is increasing steadily. Banks are again making mortgages.
- According to Tracy Cross Research, new home sales for Chicagoland were up 18.2% in 2012 over 2011.
- CoStar Group which provides real estate information, reports that land sales began rising in the last quarter of 2012 for the first time in seven years.
- 2013 will be the fourth year in a row that the economy will add some jobs. Although it may take years to get back to full employment, this is movement in a positive direction. Job growth drives housing demand and starts.
- Housing values, after spiking at unrealistic levels between 2004 and 2008, are back to normal values. Economists say housing now is fairly valued, not over or under valued.