The housing market in the DuPage area has been constantly changing. From the collapse of the real estate market in 2008, to the high foreclosure and short sale activity, and increase in market activity, in the last couple of years.
What are the current market conditions?
In most of DuPage County, foreclosures and short sales have decreased. The historically low interest rates have stimulated the market with increased activity in sales and refinancing. However, since June, the interest rates have been rising. What effect has this had?
According to the mortgage industry, the increase in rates is due to stronger economic data, with the increasing chance that the Fed may soon begin to taper their asset purchases. This is based on remarks from Fed Chairman Ben Bernanke. The billions of dollars poured in to the mortgage market, forced mortgage rates to record lows. The increase in mortgage rates came at a time when housing prices have increased faster than expected.
This has had the affect on renters to buy homes, as prices and rates rise.
However, this has hurt the refinance market, with the increase in rates.
The rising rates could not come at a worse time for the housing recovery. Home prices rose over 10% in March, according to the latest survey's. If this trend continues, the market will soften with both activity, and housing prices.
Due to these current conditions, it is more important than ever to be aware of property values.