CHICAGO IL REAL ESTATE STATS PACK - May 19, 2008
Good Morning, Everyone!
FHA-Underwritten Mortgage Loans, which had fallen from favor during the recent housing boom, are becoming popular again for those with very little down payment funds, and somewhat blemished credit.
FHA loans allow for lower personal credit quality, but requires all home buyers with these loans to pay a Mortgage Insurance Premium - 1.25 percent when the loan is funded, an additional 0.5 percent in each subsequent year, for an FHA Loan with 10% down payment. MIP would be more expensive for loans with higher leverage (Some FHA Loans allow for as little as a 3% down payment).
Under new FHA rules, those with FICO Credit Scores of less than 680 would be required to pay a higher amount for MIP - with the specific amount not yet set. The presumption here is similar to the one used by originators of conventional loans - those with lower credit scores are statistically more likely to default and fall into foreclosure than those with higher scores.
A couple of years ago, homebuyers with low credit scores often turned to sub-prime or stated-income loans, at a higher rate of interest, to procure funding for their new home. Most of these sub-prime lenders, however, are now closed for business. Today, FHA loans are the only viable option for many.
Read our post today at BlogChicagoHomes.com for more details, as well as the surprising statistic that borrowers with lower FICO Credit scores are more likely to have a slightly higher income.
Here's our updated Chicago IL Real Estate Stats Pack for Monday Morning, May 19th.
Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown.
Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park. Plus All Chicago Suburbs.
SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE
ACTV LISTINGS JUST SOLD CLOSED EXPIRED
w/e May 18th 5,203 64 61 40
w/e May 11th 5,109 56 63 41
% CHANGE +1.8% -3.6% -3.2% -2.4%
CLOSED PROPERTIES DATA
AVG SALE PRICE AVG DAYS ON MKT TOTAL VOLUME
w/e May 18th $333,397 148 DAYS $20,337,240
w/e May 11th $373,271 174 DAYS $23,516,075
% CHANGE -10.7% -14.9% -13.5%
THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -
w/e May 18th- LAST 12 MOS - 18.00 LAST 6 MOS - 25.88 LAST 3 MOS - 28.66
w/e May 11th - LAST 12 MOS - 17.41 LAST 6 MOS - 25.41 LAST 3 MOS - 27.20
PERCENT OF HOMES SELLING IN 180 DAYS -
w/e May 18th- 22.65% (UNSOLD - 77.35%)
w/e May 11th - 22.47% (UNSOLD - 77.53%)
SOURCE: MIDWEST REAL ESTATE DATA LLC, AREA MARKET SURVEY DATA
OBSERVATIONS
Active Listing Inventory shows us another warmer-weather increase! Units Pending Sale ("Just Sold"), Sold Units, and Expired Listings, in mid-month mode, showed nominal changes from last week's numbers. Average Sales Price gave back last week's increases, while Sales Volume were at mid-month low levels. Average Market Time see-sawed down again last week, and is still high - but is a move in the right direction if it continues to fall.
Absorption Rate, or average inventory turnover, is up about 5.3% this week - somewhat discouraging news, but predictable with the weaker-than-expected, cooler Early Spring Market here in the Chicago area. The market seems to be enjoying more activity within the past two-three weeks; this could serve to improve Absorption Rate numbers within the next month to 45 days, as pending listings go to closing. The current Absorption Rate on the North and Northwest Sides of Chicago - currently, just under 29 months.
Percentage of Sale Within Six Month (180 Days) improved slightly within the past week this week, but is still low. Average Market Time continues to be the culprit here.
RATE AND MARKET CHECK
Average 30-Year Fixed Mortgage Rates were virtually unchanged from last week. Average rates averaged 6.01% for the week ending May 15th, versus 6.05% for the week ending May 8th. One year ago, average 30-Year Fixed Mortgage Interest Rates were 6.15%.
"Recent remarks by Federal Reserve (Fed) officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgage rates ease up a little this week," said Frank Nothaft, Freddie Mac Vice President and Chief Economist. "Fed Chairman Bernanke indicated in a speech on May 13th that the Fed stands ready to continue to add liquidity to the markets."
"Despite the bleak housing market, there was positive news on the overall state of the economy. Retail sales (excluding automobiles) rose 0.5 percent in April, over twice that of market forecasts, and there was a significant upward revision in March’s figures as well. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold."
For daily news, hot information, and trends, view our Real Estate Update newsletter, via our Web Center - dean-team.com.
Anytime, call or email us if you would like detailed information on any Chicago Neighborhood or Suburb you are considering.
DEAN MOSS & DEAN'S TEAM CHICAGO
