As the real estate market continues the leveling-off process we are starting to see changes in our current real estate market now here in our July Market Update

During the peak of the Real estate market real estate agents were holding 2-4 hour open houses for Agents with buyers to come in and see the home and then request the highest and best offers due shortly after the open house, it was an exciting and stressful time to say the least! Now here in July of 2022
Open houses reached their highest point of the entire year, however, they are not for Agents to make the highest and best offers any longer as the flood of buyers has slowed and the open houses are having small amounts of people come to them.

Hi, my name is John Herman of Property Up and I list and sell homes in the Northwest Suburbs of Chicago.

Mortgage interest rates are the culprit and have taken off since the start of this year, in January the interest rate was at 3.2% and now here at the beginning of July we are close to 6% With this rate hike over only the past 6 months, if you buy a $400,000 home it will cost you about $500 more a month just since January. This along with gas and food prices affects all buyers and all sellers alike and each will have to make strategic adjustments. however other real estate experts are saying that the interest rates are going to be staying at this level for a while and prices may not dip because of the lower inventory.

now any real estate market will always have homes that do not sell and at the beginning of the year, there were about 1-5 homes coming off the market on a daily basis where the listing expires or is canceled with 10 different large towns in the Northwest Suburbs. basically, everything was selling. Now fast forward to today where we have about 20-30 homes coming off the market on a daily basis here which is more of what we see in a normal balanced real estate market.

Builders have been filing fewer building permits in the last month as well. By the way, Did you know that in Illinois 24% of the cost to build a home goes towards paying for the regulations for the builders? Our builders need a break in Illinois because they pass that cost to us as buyers.

According to Realtor.com, The supply of homes for sale has finally begun to rise being up 21% now from a year ago. It is still, however, about half of pre-Covid levels and remains low.

So Inventory is finally getting a little better and the prices are starting to level off now as expected with the increasing mortgage interest rates. The great news is that if you have owned your home or investment property for 5 years or more now you have realized an incredible amount of equity over this time. well. I certainly hope you found this video educational and helpful.

Again my name is John Herman of Property Up and I look forward to assisting you in the very near future, make it a great day!