Chicago - Jun 2024 Market Update

Written By Tracy Lai

Beautiful interior of Minyoli, a new Taiwanese restaurant in Andersonville

Mortgage news

  • As of June 4 (CNN), the average mortgage interest rates are:

    • 30-year fixed: 7.48%

    • 20-year fixed: 7.25%

    • 15-year fixed: 6.72%

  • The Fed will meet next on June 11-12, and experts predict that mortgage rates will remain relatively unchanged (CBS News)

    • Late 2023: the Fed hinted at rate cuts in 2024, but the cuts have been delayed by persistent inflation

Having trouble buying an affordable home? So are many first time homebuyers. Introducing the zero-percent down mortgage program, launched by United Wholesale Mortgage.

  • The biggest roadblock for first time homebuyers is saving enough money for a down payment, with home prices increasing. Under the zero-percent down mortgage program, homebuyers who qualify won’t need to put down an upfront down payment

  • How it works: Qualified buyers take out a mortgage for 97% of the home’s value with a first mortgage. The remaining 3% (up to $15,000) is provided in a second mortgage, which will not accrue interest but will need to be paid back in full when the home is sold or the first mortgage is paid off

  • Qualifications: first time homebuyers and middle-income consumers earning up to 80% of the area’s median income or less, with a FICO score of at least 620

  • Is the 2008 financial crisis making a comeback? While this creative financing may eliminate the roadblock of an upfront down payment, the 15% mortgage will need to be paid in full later down the line. Critics worry that the risks involved will place these homeowners at a disadvantage in unforeseen circumstances, such as if the housing market goes down, if you lose a job or are in financial distress, or need to relocate

Buyer Demographics - Millennials + Gen Z

Baby boomers have long dominated the housing market, accounting for 39% of all homebuyers. Millennials fall in second place, at 28%, with Gen X in third at 24% and Gen Z as an up and coming buyer group at 4% (2022 numbers).

If you’re reading this, chances are you identify as either a member of the millennial or Gen Z population. Due to factors like income, spending habits, and life phases, they each have their own buyer profiles and priorities when it comes to purchasing a home. Which buyer profile do you identify more with? Read more here.

Chicago April Market Stats

April 2024 continued to show an increased number of closed sales in a shorter amount of time on the market, a higher median sales price, and with more inventory of homes for sale.

Year to Year numbers (YoY%)

Number of home sales increased to 2,207 total closed sales in April (+6.4% YoY), with a median sales price of $370,000 (+7.0%) compared to April 2023. The average days in market (DIM) decreased by -19.7% YoY at 61 days, and the inventory of homes for sale decreased to 4,839 (-11.0% YoY).

Month to month numbers (MoM%)

Compared to March: Total April home sales of 2,207 increased +23.3% MoM; median price of $370,000 increased for the third consecutive month since January. Average market time of 61 days dropped -20.8% MoM; Inventory of homes for sale increased for the fourth consecutive month since December 2023 at +4.4% MoM.

Local News and Events

Did someone say summer?? Come check out these summer events:

 

Thanks for reading! Feel free to reach out if you have any plans to rent, buy or sell in the future. Happy to help with any of your real estate needs :)

-Tracy

Tracy Lai
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Buyer Profiles 2023 - Millennial + Gen Z