Don’t Pay Too Much For Homes On The North Side Of Chicago
Home values in Lincoln Park, for example, have jumped 10% in the past year.
23-May-21 ?? Chicago’s springtime market for existing homes on the city’s north side is truly the wackiest housing-watchers have seen in decades.
It’s a strong sellers’ market on the north side with multiple bids the rule, but buyers should be careful not to overpay due to the low inventory bubble, ?? informed John irwin (left), broker with Baird & Warner and author of May 2021 Market Analysis for the North Side of Chicago.
On the Near North Side, home sales and contract units rebounded well. However, inventory levels continue to grow at alarming rates ?? up 44.1% in April in the Loop, Streeterville, Gold Coast and River North, ?? he said.
Apparently, Near North home and condominium sellers are still worried about last year’s looting and civil unrest in the downtown area, and the negative impact of the COVID-19 virus on high-rise buildings.
On the positive side, the overall inventory of existing homes and condos rose 19.2% in April across the north side.
However, potential buyers looking for a home in Lincoln Park and the North Center will need to shop. Inventory levels at Lincoln Park fell 7.2% in April, and they fell 22.8% in North Center.
The Baird & Warner analysis posted the following median prices in April …
?? Near North Side. The median price was $ 435,000, up 4.8% from April 2020.
?? Lincoln Park. The median price climbed 10% in April to $ 577,750, compared to a year ago.
?? View of the lake. The median price fell 1.3% to $ 440,500 as of April 2020.
?? North center. The median price was $ 5,000, up 3.9% from the same month a year ago.
Mortgage rates fall again
Affordable home loan rates in recent weeks have also supported the market. Freddie Mac ?? s Primary Mortgage Market Survey reported on May 13 that benchmark 30-year fixed home loans across the country slipped to 2.94%, from 2.96% a week earlier. A year ago, the 30-year fixed loan average was 3.28%.
15-year fixed mortgages averaged 2.26%, down from 2.30% a week earlier. A year ago, the 15-year fixed loan average was 2.72%.
The Freddie Mac survey focuses on conventional, compliant, fully amortizing home loans for borrowers who are 20% down and have excellent credit.
In Chicago on May 13, Rate Rabbit Home Loans quoted 2.849% on a 30-year fixed mortgage with a 20% down payment and a loan fee of $ 1,900, Rate Seeker reported. Gateway Capital Mortgage quoted 2.877% on 30-year loans and 2.125% on 15-year loans with a 5% down payment. The loan fee was $ 595.
Since the most recent peak in April, mortgage rates have fallen by almost a quarter of a percentage point and remained below 3% last month, ?? Noted Sam khater (right), chief economist for Freddie Mac. Low rates give homeowners the option of lowering their monthly payment by refinancing, and our most recent research shows that many borrowers, especially black and Hispanic borrowers, who could benefit from refinancing, are still not pursuing the option. .
While the low mortgage rate environment has been a boon to the housing market, Khater predicted it might not last long.
Consumer inflation recently accelerated to its fastest pace in over 12 years and could push mortgage rates up in the summer, ?? Khater warned.