Home Values Drop In Illinois Due To Sky-High Mortgage Rates: Report

“Rapidly-rising mortgage rates have not only resulted in fewer home sales but have begun to impact home prices as well,” Rick Sharga, executive vice president of market intelligence at ATTOM, said in a release. However, despite the drop in recent months, home sale profits are still higher than they were a year ago this time when profits were at $280,000, ATTOM reported. The year-over-year data shows an increase of 4.1 percent and home sales are up 13.2 percent from where they were at this time in 2020, the data shows. The biggest quarterly increases were:
• Macon, Georgia (up from 44.7 percent in Q2 of 2022 to 82.4 percent in Q3)
• Rockford, Illinois (up from 29.9 percent to 41.8 percent)
• Davenport, Iowa (up from 29.2 percent to 40 percent)
• Akron, Ohio (up from 52.8 percent to 60.3 percent)
• Hilo, Hawaii (up from 103.3 percent to 110.9 percent)

ATTOM, a curator of nationwide real estate data, released its third-quarter 2022 U.S. Home Sales Report on Thursday. The report shows that seller profits on median-priced single-family homes and condos across the United States dropped 3 percent from the second to the third quarter of 2022 in more than half of the 186 metropolitan areas tracked. In all, profit margins — or the percentage change between median purchase and resale prices — dropped from 57.6 percent to 54.6 percent, according to ATTOM. Fortunately, seller profits are still higher than they were a year ago when margins came in at 48.8 percent.The change also comes as the median national home value dropped 3 percent in the third quarter to roughly $340,000. Despite the drop, home prices are still higher than they were a year ago in nearly 97 percent of cities tracked. “Rapidly-rising mortgage rates have not only resulted in fewer home sales but have begun to impact home prices as well,” Rick Sharga, executive vice president of market intelligence at ATTOM, said in a release. “With rates the highest they’ve been in over 20 year s, homebuyers face serious affordability challenges, with monthly payments in some markets up 50 percent year -over- year . It’s very likely that home prices will continue to weaken in many markets in the coming months.”In the greater Chicago area, profits dropped slightly over the last quarter of this year , data shows. Profits dropped from $296,875 in the second quarter of this year to $291,500 — a drop of 1.8 percent . However, despite the drop in recent months, home sale profits are still higher than they were a year ago this time when profits were at $280,000, ATTOM reported. The year -over- year data shows an increase of 4.1 percent and home sales are up 13.2 percent from where they were at this time in 2020, the data shows. Profits were also up in the Champaign-Urbana region both over the past quarter and past year . The average home sale profits there came in at $178,000 this quarter compared to $175,000 in the second quarter. Profits are up 7.9 percent from 2021 and up 7.6 percent from 2020, the data shows.Average mortgage rates have doubled this year , passing 6 percent for a 30- year fixed-rate loan, according to ATTOM. Meanwhile, the stock market has slumped and consumer price inflation is at a 40- year high. Foreclosure activity by lenders also more than doubled over the past year , the report says. Combined, those factors have raised home-ownership costs for buyers, cut into resources available for down payments on purchases, and eaten into overall household budgets. They also increased the supply of homes for sale, causing prices to drop.“If the Federal Reserve’s objective was to slow down the housing market, it has succeeded spectacularly,” Sharga said. The biggest quarterly decreases in profit margins were reported in the following metro areas, according to the report:
• Claremont-Lebanon, New Hampshire (down from 72.8 percent in Q2 of 2022 to 52.4 percent in Q3)
• San Francisco, California (down from 85.1 percent to 65.4 percent)
• Prescott, Arizona (down from 86.3 percent to 70.8 percent)
• Barnstable, Massachusetts (down from 74.5 percent to 59.6 percent)
• Trenton, New Jersey (down from 74.5 percent to 61 percent) Typical profit margins increased in just 59 metro areas. The biggest quarterly increases were:
• Macon, Georgia (up from 44.7 percent in Q2 of 2022 to 82.4 percent in Q3)
• Rockford, Illinois (up from 29.9 percent to 4 1.8 percent )
• Davenport, Iowa (up from 29.2 percent to 40 percent)
• Akron, Ohio (up from 52.8 percent to 60.3 percent)
• Hilo, Hawaii (up from 103.3 percent to 110.9 percent ) The biggest decreases in median home prices were recorded in the following areas: The largest increases in median prices from the second to the third quarter were in these cities: