divider

Archive



What Are Future Plans for the Allstate Campus?

/ 0 Comments

Allstate Insurance Company Headquarters was located at the Northbrook campus for more than 50 years.  However, as with many American companies, the pandemic introduced a wide-spread shift for employees to work from home.  With Allstate specifically, close to 95 percent of their employees have chosen to work from home.  The need for the large multi-building campus was no longer needed by the insurance company and it was listed for sale.

According to an article published by TheRealDeal.com, the Northbrook campus was purchased for $232 million.  Due to the shift in demand for e-commerce, commercial property such as this is no longer purchased with the intent to house employees, instead its investors are looking to develop the land to build warehouses. 

The article states, “The Nevada industrial developer that agreed to pay $232 million for Allstate’s suburban Chicago campus aims to transform the site into 3.2 million square feet of warehouses — assuming it gets the approval of local governments.”  Therefore, the key next step, however, will be to get approval from the neighboring towns of Glenview, Northbrook and Prospect Heights.  The developer hopes to gain the confidence of these towns, who may be concerns about the impact of a large warehouse facility as a neighbor. 

Read the entire article.

Learn More
separator


Slow Down in Home Price Gains Reported

/ 0 Comments

U.S. home prices have consistently risen each month in comparison to the prices in 2020.  As many Americans are aware, the onset of the pandemic created a high demand for homes and with the short supply and low rates, prices increased significantly.

However, a recent report indicates the price increases may be slowing down.  CNBC.com reports in an article written by Diana Olick, “Home prices rose 19.5% in September year over year, down from a 19.8% annual gain in August, according to the S&P CoreLogic Case-Shiller National Home Price Index. That is the first decrease in the annual gain since May 2020.”

Some cities continue to see significant increases in pricing compared to September 2020.  For example, Phoenix home prices grew just over 33% compared to September 2020.  Even some of the cities in America that reported the smallest gains still have increases of more than 10%.

The managing director at S&P Dow Jones Indices, Craig Lazzara, may have coined the most accurate description of this data:  “Deceleration”.  Prices are still strong, it just appears the growth is slowing down a bit.  The combination of an anticipated increase of homes coming on the market with mortgage rates slightly increasing are potential factors.

Read the entire article.

Learn More
separator


FHA Announces Forbearance Extended Relief for Some Homeowners

/ 0 Comments

DSNews.com released an article announcing some COVID Forbearance extensions that might allow some American homeowners to breathe a sign of relief.   As a result of the “continued impact of the pandemic”, the Federal Housing Administration is providing extended COVID-19 relief for some homeowners.

The extension specifically applies to borrowers who only recently became affected by the pandemic and are seeking mortgage relief.  According to the article, Principal Deputy Assistant Secretary for Housing Lopa Kolluri indicated, “Our top priority is to help as many individuals and families as possible to recover from the COVID-19 pandemic and keep their home.”

As a result, borrowers who are newly affected by the pandemic can now receive up to 6 months of COVID-19 Forbearance.   Additionally, up to 6 months of additional relief may be provided to borrowers who made requests in the past several months, between July 1, 2021 and September 30, 20201.

Read the entire article and see details of the forbearance periods and extensions.

Learn More
separator


Home Sales Fall for First Time in 14 Months

/ 0 Comments

The real estate market in the U.S. has been a red hot sellers’ market for several months, reflected in homes in short supply and high demand, and consistent price increases.  In comparison to August 2020, the median price of an existing home increased almost 15% by August of this year.

However, it appears that the demand for homes may be on the decline.  From July 2021 to August 2021, sales of homes dipped 2%.  In an article published by CNBC.com, it is stated, ‘“The housing sector is clearly settling down,” said Lawrence Yun, chief economist for the Realtors, who called last year’s super surge “an anomaly.’

It would seem that some buyers are deciding to wait for prices to fall or adjust, especially first time home buyers that might be priced out of the market right now.  According to the article, first time home buyers usually make up about 40% of the total buyers, but the percentage has fallen to 29%.

Additionally, it is expected that more housing inventory is on the horizon with the eviction moratorium ending.  Since the inventory of homes had been down 13% in comparison to August 2020, the additionally supply may help ease the supply issue and cause prices to adjust.

Read the entire article.

Learn More
separator


What’s Next for the U.S. Real Estate Market?

/ 0 Comments

The last several months, real estate in the United States has been red hot.  Low supply of homes, mortgage rates that continue to remain low and a large number of Americans making post-pandemic decisions to move to bigger homes or homes in different geographic areas have all held pave the way for a hot sellers’ market.  However, many know that this is not the first time the real estate market exploded into situations of multiple offers, above asking price, with real estate professionals just trying to keep up.  So, it should be no surprise to many seasoned real estate professionals, that there will be a change in the market at some point.

In an article published by Forbes, a theory about the real estate market phases is detailed.  Real Estate expert Glenn R. Mueller, PhD believes the four phases of the real estate market are Recovery, Expansion, Hyper Supply and Recession.  And, according to Sam Mehrbod PhD, author of the Forbes article, U.S. real estate markets are currently in phase two.  This phase is still a sellers’ market, but heading toward the peak.  On the horizon, potentially, is the third phase.  This phase is a buyers’ market defined as Hyper Supply and buyers become a little more scarce and panic selling can begin.

Mehrbod has suggestions for real estate professionals to help them prepare for the next phase, building a net work to ensure success in any phase of the real estate market.  Its imperative for real estate professionals to continue to build and stay relevant within their networks.  He makes suggestions such as regularly posting relevant and educational content on social media, beginning to build buyer lead lists for future markets, and utilizing marketing funds consistently to allow long term marketing plans. By staying on top of networking and marketing and anticipating what might be coming up next, real estate professionals can be prepared to ride the next wave.

Read the entire article.                

Learn More
separator


Are Americans Still Optimistic About Home Ownership?

/ 0 Comments

The COVID-19 pandemic had a significant impact on the real estate market.  As many employees were required to work from home and more Americans found themselves at home many more hours of the day, they decided it was time to make a move.  Perhaps to a house with more space for a home office and more space for the all the family members spending more time at home to spread out.  As a result, demand increased yet supply could not keep up.  Naturally, in turn, home prices increased as well. 

As Americans feel a slight return to life before the pandemic, the question is, do they still feel that it is a good time to buy a home.  Are Americans leery about the market taking a downturn and perhaps adjust itself?  An article published by Realtor.com indicates that Americans remain optimistic about the upward trend of home prices.  “Gallup’s survey found that 71% of Americans believe that home prices are going to increase over the next year in their local market” writes reporter Jacob Passy.

Further, more than half of Americans surveyed by this Gallup poll indicate that now is still a good time to buy a home, 53% to be exact.  Only 50% of Americans felt this way last year at this time.  Despite reports that home ownership is still viewed as a preferred long term investment, Google has found a significant increase in internet searches revolving around the possibility of a real estate crash.  Indicating U.S. homeowners or potential homeowners are still keeping an eye out for a change in the real estate market.

Read the entire article.

Learn More
separator


How Has the U.S. Managed to Avoid Another Foreclosure Crisis?

/ 0 Comments

As the COVID-19 pandemic began to spread across the United States last spring and states announced shut downs, many Americans found themselves unemployed or underemployed.  As a result, the federal government took swift action to provide mortgage payment relief by allowing homeowners to enter forbearance.  A year later, as of March 2021, 2.5 million homeowners were still in forbearance, according to the Mortgage Bankers of America.

Realtor.com published an article, noting the opinions of experts who explain that, despite this alarming number of U.S. homeowners behind on payments, a potential foreclosure crisis is unlikely.  In the article, reporter Sharon Lurye explains, the current housing market conditions are likely to provide a safety net for many of homeowners.  Houses, in many parts of the United States, continue to be in high demand and the inventory remains low.  Coupled with low interest rates, homeowners behind on payments, possible nearing the end of their forbearance, could still decide to sell the home for a profit. Additionally, as Americans getting their footing and learn to adjust to the current conditions, forbearance rates dropping nationwide.

Nevertheless, there are still areas of the country where homeowners are not only seriously behind on payments, but the housing market is not as strong due to weak economies and lack of employment.  These homeowners will continue to need assistance by reaching out to their lender with the hopes of renegotiating the terms of their loan in a way that makes it feasible to make the payments.  Still, some may decide to just sell and move to a rental property, assuming they can find a property to rend. 

The good news, it seems that the U.S. isn’t headed toward a wide-spread foreclosure crisis, however there are Americans that continue to struggle and may for months and years to come.

Read the entire article.

Learn More
separator


How Zillow Plans to Make Selling Homes Simpler

/ 0 Comments

Many Americans interested in, not only the potential value of their home, but also other homes in their neighborhood, the homes of their friends or homes they dream to own someday, search Zillow.com to see the estimated value the site has calculated.  Zillow.com, however, is looking to branch out beyond just providing home price estimates, they have begun to actually buy and sell homes and plan on making the process even easier. 

In an article published by CNN Business, the new division of Zillow, called Zillow Offers has some new features to make the process of selling a home possible with just a few clicks of a mouse. As CNN Business reporter, Clare Duffy, details, “For certain homes, Zillow’s ‘Zestimate’— the online estimate of the home’s value — will now represent an initial cash offer from the company to buy the property. That could mean an even quicker timeline for homeowners looking to close a sale without going through the hassle of a formal listing, or a source of helpful data for would-be sellers who want to know how much money they’ll have to buy their next house.”

The Zillow Offers division of the company has been operating in a handful of markets for about three years now.  They have been requesting information from homeowners in order to determine the cash offer from Zillow.  The new, revamped process, soon to be available in 23 markets, will skip the required questionnaire and photos from the homeowner.  Zillow is confident in the information currently available for many of the homes that the posted Zestimate would be the actual cash offer.  A homeowner could simply contact Zillow to cash in on the Zestimate.  After an inspection and adjustment made based on any repair issues, the sellers could pay a Zillow the seller’s fee and close the deal.

Skeptics doubt the accuracy of the posted home values.  Yet, according to the article, Zillow’s COO Jeremy Wacksman points out, “For homeowners who decline Zillow’s cash offer, the difference between Zillow’s offer and what they end up selling for is typically less than 1%…”

Read the entire article.

Learn More
separator


The 2021 Housing Market Continues to Look Good for Sellers

/ 0 Comments

A look back at the first few weeks of 2021 and the national real estate market shows that home sales and the number of buyers increased in comparison to the last few weeks of 2020.  Nevertheless, a low inventory of homes continues to create difficulty buying conditions for these would-be homeowners.

In an article published by CNBC.com, reported by Diana Olick, the housing market is compared to the beginning of 2020 where January 2021 is reported to have seen sales 23.7% higher than January of last year.  According to the article, ‘“Home sales are continuing to play a part in propping up the economy,” said Lawrence Yun, chief economist for the NAR. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”’

However, the availability of homes, in comparison to January 2020, was down 26%.  This reported 1.9-month supply, compared to a January 2020 3- month supply, is the lowest ever reported. Of course, the low housing inventory coupled with the continued demand has allowed the median home price to increase a little over 14% since last January.

The article goes on to report new home sales and how builders have benefited from the shortages but also face supply and labor issues.  Read the entire article.

Learn More
separator


How Have Home Prices Fared Amidst the 2020 Economy?

/ 0 Comments

2020 has been a year full of the unexpected and has been unpredictable, to say the least.  The economic effects of the pandemic have been staggering; businesses have had to close or make modifications that result in lost income, many Americans are collecting unemployment due to COVID-19 related layoffs.  In this type of economic climate, it would be expected that the housing market and home prices would suffer as well.

Nevertheless, 2020 has brought drastic increases in home prices.  According to an article published in Realtor Magazine, ” . Existing-home prices for all housing types jumped 15.5% year over year in October to $313,000, according to the National Association of REALTORS®.”  In fact, this year’s home appreciation rate is the fastest appreciation rate the housing market has seen in 6 years.

The home value gains are seen across the United States.  New York saw some of the lowest gains, being up 2.6% over the past year.  However, areas in other parts of the Northwest, such as Maine, saw home values appreciate almost 15%.  Western states are seeing values increase around 12 and 13 percent compared to last year.

Read the entire article.

Learn More
separator