Chicagoland IL NW Suburban Real Estate News: NAR Says Home Prices Rise & FHA Still Important in the Mortgage Market!

The Federal Housing Administration is still playing such a vital role in todays market.

It is still helping insure that there is plenty of capital in the mortgage market to keep the flood of new buyers wet with money in their pocket to purchase that home of their dreams.

In 2009, more than 50 percent of first-time buyers used FHA to finance their home purchase, and nearly 80 percent of FHA’s purchase loans were to first-time home buyers. FHA also serves those who need to refinance out of risky adjustable-rate mortgages or subprime loans with high interest rates. In 2009, approximately 835,000 borrowers refinanced into lower interest rate FHA-insured loans, saving them an estimated $1.3 billion.

What was once an obscure lending tool, has now become a mainstay product offering for many banks. However, despite its popularity, it is vital the traditional private financing be returned by the banks.

Excitingly, while there has been this increase in buyer activity, it has not just increased the number of sales, but in certain metropolitan areas across the country, home prices have RISEN!

In fact, in the first quarter, 91 out of 152 metropolitan statistical areas showed higher median existing single-family home prices in comparison with the first quarter of 2009, including 29 with double-digit increases! This is big news! Sales increased from a year ago in 44 states and the District of Columbia; 31 states and D.C. saw double-digit gains while two were unchanged and four were down. Where prices didn’t rise or fall they hovered unchanged – which is also GREAT NEWS as it is a sign of a stable market.

Here out in the Midwest, the median existing single-family home price slipped only 0.8 percent to $130,600 in the first quarter from a year ago. Existing-home sales are 10.8% above the first quarter of 2009.

Whether you are a first time buyer trying to determine how much you can afford, or an experienced buyer who is selling your current property and ready to buy your next home I can help you with all your real estate needs in the Chicagoland Northwest Suburbs Area.

Finding your dream home or finding a buyer is only part of the challenge of a successful transaction. Click here to search Bartlett IL, Schaumburg IL and the Hoffman Estates using our complimentary MLS Search service. You can also view our fantastic range of featured properties!

Alternatively please contact me today if you need more specific assistance in your real estate needs. You can call the office on: 847-874-6731 or Cell phone on: 847-913-2606 or of course email me at: Joe@JoeStacy.com

My expertise, experience and dedication to you and your specific needs are anything but average – it’s why this office is number one in the Northwest Suburbs year after year!

Joe Stacy
2570 W. Schaumburg Rd
Schaumburg, IL 60194