Not only is it a strange time that we live in, but it’s also a confusing one. Have no worries, your ILFLS team is here to summarize the most important aspects of the current real estate market.
From the State
The counties that we cover (Cook, DuPage, Kane, Kendall, Will, McHenry, Lake) are grouped into the Northeast Region and are currently in Phase 3. Schools remain closed and there are no non-essential gatherings/businesses. Unfortunately, there is a chance that the destruction from riots over the past couple of days may hinder the progression of the planned June 3rd reopening.
All evictions are still on hold.
From the Auctions
Updated on 07.02.2020:
The following counties are currently holding auctions:
Here is a list of updated start dates per county:
Cook County expected to start on 8/3/20
DuPage County expected to start on 8/4/20
Lake County expected to start on 7/7/20 (If you are planning on bidding in Lake County next week, we need to have bid funds from you by Monday 7/6/20)
Kane County expected to start on 8/6/20
Kendall County expected to start on 9/14/20
Will County expected to start on 8/6/20
Remember, you can always purchase and invest in properties at foreclosure auctions from the comfort and safety of your own home! Find out how here.
From the Housing Market
The home-buying demand is officially in growth mode! At the start of 2020, mortgage rates were at an all-time low and we were seeing a nice incline in the housing market. However, COVID put a damper on that and the market was in a recovery mode up until May 21st 2020. But we’ve seen a tremendous bounce back as home-buying demand is up 16.5% above pre-COVID levels. This is further driven by the fact that the average 30-year fixed-rate mortgage is at a record low of 3%.
There is a noticeable shift in demand and interest in single-family homes in the suburbs. Many people are taking this time as both an opportunity and a sign to settle down in the suburbs.
From the Analysts
The main issue across the board is still the “lack” of inventory in the housing market. This “lack” is very unique and speaks to our current situation: we don’t have a lack of money to purchase homes like during the Great Depression, or a lack of available homes during post-WWII — instead, we have perfectly good inventory that just isn’t accessible by traditional means.
This is by no means a bad thing! When the automation boom hit, people were worried that their jobs were going to be lost and replaced by machines. But that was not so because jobs were not actually lost, they simply shifted. MIT Economist David Autor provides the best thought exercise to explain this: if you teleported back 100 years and asked people in the 1900s (when 40% of jobs were in agriculture) what jobs they think would be the most popular now, no one would fathom to say “search engine optimization”.
We simply need to keep an open mind and adapt — fast!
Because two things are resoundingly clear:
- Our current state of affairs is completely temporary, to the point where we have “restart” dates and
- Once everything restarts, we are looking at some HUGE numbers
This is the time to do it!
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