24/7 Wall St. - Chicago,News Partner
By Samuel Stebbins, 24/7 Wall St. - Chicago:
With home prices declining for over six months, some U.S. housing market conditions have shifted to favor buyers. Still, other conditions stack up against homebuyers, particularly mortgage rates. As inflation began to surge, the Federal Reserve raised interest rates nine times in 12 months in an attempt to stem rising prices. The cumulative 475 basis points Fed rate hike sent mortgage rates soaring, forcing many homebuyers to reevaluate their budgets and consider exactly how much house they can afford.
Since September 2022, the average interest rate on a 30-year fixed rate mortgage has been above 6%, the highest it has been in nearly a decade and a half. With historically high borrowing costs, many homebuyers are seeking more affordable markets. And in some parts of the country, a relatively modest housing budget goes a lot further than in others.
According to data from the Federal Reserve Bank of St. Louis, the median list price for a home in Illinois was about $172 per square foot as of March 2023. Based on price per square foot, a homebuyer with a $200,000 budget can afford a 1,163 square foot home, the 14th largest of any state. A year earlier, the size of a $200,000 home in the state was 0.6% bigger than it is today.
Based on data from the U.S. Census Bureau’s 2021 American Community Survey, the typical home in Illinois is worth $231,500, compared to the national median home value of $281,400.
Illinois Flat Fee