CHAMPAIGN, ILLINOIS — After years of sluggishness, real estate is finally starting to contribute to the overall economic recovery.
The National Association of Realtors recently reported that sales of existing homes in the United States rose 7.8 percent from July to August. The national median sales price has increased six straight months, according to the NAR, and the closely-watched S&P/Case Shiller home price index of the country’s 20 largest metropolitan areas has advanced for three straight months. Housing starts and building permit applications are also up significantly.
Although home values seem to be slowly but steadily rising, homes are still affordable. With interest rates on home loans at rock-bottom lows, affordability also exists somewhat independent of home prices in terms of monthly payment amounts. These conditions, along with pent-up demand during the years when potential buyers were not confident enough to buy, indicate that supply will lag demand.
Local real estate broker Josh Gidcumb said: “I’m not an economist, but most people can understand simple supply and demand, and it’s easy to see that turning around the other way. When you combine affordability with the return of buyers’ confidence in real estate, demand grows. It’s a legitimate concern that supply won’t be able to keep up. We’re not in immediate danger of another real estate bubble, but you can expect that prices will rise steadily in the short term and have a real chance of spiking if supply can’t keep up.”
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Josh has since transitioned in the Real Estate industry with a personal goal of providing his expertise to his clients. In addition to his financial services experience, his wealth of knowledge in all aspects of Finance has proven to be the most valuable service his clients are able to leverage by utilizing his services.
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CU REALTY GROUP, LLC is currently expanding operations to meet the demands of customers in our Illinois markets, and if you are as excited and motivated as we are we want you to be a part of it! Don’t just simply take our word for it, see for yourself why Keller Williams is positioned at the top of the real estate market and recognized as the 2nd largest firm in the United States before you decide to join another firm.