Have you heard? Average prices of houses in the Northwest Suburbs rose $11,000 between January and February, 2012! That means we hit the bottom in January. Was it a one-time thing? Not if you consider that the listing prices on a whole range of properties, from mid-price houses to condos dropped at least $100,000 in the last three years -- houses on the North Shore experienced way more drastic cuts than that -- but in the last month are selling within spitting range of their most recent listing price.
Another indicator signifiying that the real estate market is rising from the ashes is last week's upswing in interest rates. Last month a 30-year FHA loan was 3.5 percent. This month we've high jumped to 4.25 percent. Conventional 30-year mortgage is hovering between 4.0 and 4.25 percent. While still at historic lows -- when I started selling real estate in the 1980s, people were jubilant to get a 15 percent interest rate -- these rate increases add an extra $100. to a buyer's monthly nut.
The market is growing increasingly stronger -- this much those of us in the real estate business are sure as the numbers don't lie. In March, for example, Coldwell Banker Residential throughout the northwest region had 1800 Realtors from various offices make appointments to show our property listings. Most of these showings involved properties priced $325,000 and below, while five percent of the appointments were for properties in the $500,000 range.
While some folks still want to wait to sell their primary residences, they are taking out loans or paying cash to purchase investment condos, townhouses, or single family homes priced at $200,000 and below. These they fix up and rent out for a couple of hundred dollars more than their mortgage amount! A recent invester I know just purchased two two-flat buildings for a total of $200,000. There are deals to be had, people! Feel free to contact me for free consultation!