Realtors: Rate hike won't affect homebuyers

DOWNERS GROVE - November was the last full month before the Fed's Dec. 16 interest rate increase, but Lynn Madison, president of Mainstreet Organization of Realtors and owner of Lynn Madison Seminars, believes that the hike will not lead to an increased mortgage rate for suburban homebuyers.

"The interest rate hike will affect the psychology of the marketplace before it affects the actual long-term mortgage rates," said Madison. "The rate increase doesn't always equate to an immediate long-term mortgage rate increase."

The number of detached single-family houses sold year-to-date rose by 9.6 percent in November throughout Chicago's suburban housing market, as shown in statistics released by MORe. The average sales price and median sales price also increased year-to-date, reflecting a 7.1 percent and 5.6 percent improvement respectively. The average market time for houses also decreased by 6.5 percent, while the median sales price of homes sold in November increased by 11.8 percent month-to-date, according to data provided by Midwest Real Estate Data LLC.

"We're not seeing the kind of dramatic seasonal slowdown that we've seen in years past," said Madison. "The median sales price has stayed up over last year in almost every municipality we cover. Sales are still up over last year."