Southern Illinois Housing Market Forecasts for 2017

 

2016 was a good year for real estate, and the trends tracked in that year are giving housing market and financial forecasters a lot of good information regarding the trends that will come with this new year.

 

By looking at the trends that were happening in 2016, we can get a better idea of what will happen in 2017.

 

 

Buyers in Illinois were extremely motivated in November, and because of that, sellers benefitted.  To start out 2017, the trend seems to be indicating an increase in Illinois home sales.  Home sales in Illinois during November 2016 gained momentum, as indicated by double-digit increases in annual home sales.  Statewide home sales are up 14.8% in November 2016 in comparison to November 2015.  Also rising are the gains in median home prices, meaning that there aren’t just more homes selling as of lately, but that the price at which those homes are selling is increasing, as well.  Statewide, median home sale prices are up 7.9% from November 2015 to November 2016.

 

Also trending in an exciting way is the time that a home spends on the market.  In November of 2015,  the average amount of time that a home spent on the market before selling was 68 days in Illinois.  In November of 2016, however, homes only spent an average of 62 days on the market before selling. 

 

From 2015 to 2016, available housing decreased 14.7% in Southern Illinois.  While at a glance, this number may seem like a bad thing for the housing industry, all that it means is that the market is great for sellers.  There are a number of reasons for this, from the demand increasing due to an increased amount of Millennials purchasing homes, an increased number of Baby Boomers buying smaller homes, the largest wage increase going to people ages 35-34, and an infinite number of other reasons.  This trend, in particular, is a driving force of the other trends happening in the market.  Where there is a discrepancy in supply and demand, there is always a group benefitting from that difference. 

The above information, predictions, and statistics all provided by Illinois Realtor® (http://www.illinoisrealtor.org/node/4142) and Realtor.com® (http://www.realtor.com/news/trends/top-real-estate-trends-2017/)

 

On an extremely local level, it’s worth noting that St. Clair and Randolph counties are reporting record numbers of year-to-date home sales in November.  In fact, these two counties have seen more homes sold in November 2016 than the total of the previous five Novembers

 

As far as the amount of time that a home is on the market before it sells, St. Clair County saw a 26% decrease during November 2016 from November 2015.  As for Monroe County, there was an incredible 53.8% decrease in the days on market!

The above information, predictions, and statistics all provided by the Realtor® Association of Southwestern Illinois (http://www.618realtor.com/local-news-and-resources/metro-east-housing-stats/)

 

Although this information may seem frightening for those looking to Buy a home this year, this information should be taken with consideration.  The market may be benefitting the sellers a bit more than the buyers, but that doesn’t mean that buyers are seeing negative consequences of the market.  It simply means that currently, there’s a seller’s market in local real estate.  As the President of the REALTOR® Association of Southwestern Illinois, Mike Gross puts it, “Now is a great time to take advantage of the unique opportunities of the Metro-East Housing Market… Interest rates are anticipated to inch higher, median home prices are stable, and homes are selling at a faster pace than years past, and sellers are seeing the benefits.  At the same time, buyers are still able to purchase homes at affordable and stable prices.  The Metro-East offers so many great opportunities to build a future.” (Realtor® Association of Southwestern Illinois, “Metro East Housing Stats” http://www.618realtor.com/local-news-and-resources/metro-east-housing-stats/)

 

According to Dr. Geoffrey J.D. Hewings, Director of the Regional Economic Applications Laboratory at the University of Illinois, the median price of homes sold in Illinois is expected to increase any level from 2.1 to 6.9 percent this year.  The National Association of Realtors® expects home sales in the US to grow modestly in 2017, which would be indicative of the market stabilizing, a great sign for the housing industry.  Although local market trends are so much more important than national ones in regards to what home buyers or sellers should be worried about, there is often a slight correlation, if not with all trends, then with some.  From the way sales nationally and locally went in the real estate industry for 2016, 2017 seems like it’s on the right track.

The above information, predictions, and statistics all provided by the Realtor® Association of Southwestern Illinois (http://www.618realtor.com/local-news-and-resources/metro-east-housing-stats/)

 

2017 really does seem like the right time to Buy or sell in Southern Illinois!

Contact The Linda Frierdich Group of Century 21 Advantage today to discuss your real estate needs!

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