Illinois home builders remain confident in the south suburban residential housing market with 97 percent of respondents forecasting a positive future for new construction, according to the recently released "State of the Market" Residential Real Estate Survey commissioned by Anderson Associates Architects in conjunction with the Southwest Suburban Home Builders Association (SSHBA).

In February of 2005, Anderson Associates Architects partnered with the SSHBA to survey the organization's members, and obtain their insights, and perspective regarding the state of the real estate market in 2005. The survey represents the collective input of more than 35 members of the SSHBA, providing insight into the trends taking shape and other factors influencing the local residential real estate market.

To put the survey into context, interest rates have reached record lows and home-ownership has hit record highs in recent years, yet home builders, buyers, sellers, Realtors and investors have wondered how long these trends will last and if upward movement in interest rates will slow or choke off homebuying.

A majority of SSHBA members responding to the Anderson survey believe that new home construction starts will hold steady in 2005. However, 85 percent of respondents also believe that a mortgage rate increase could moderately slow sales and new development.

Almost all survey respondents (97 percent) remain confident, or cautiously optimistic, regarding the growth of the residential housing market in 2005. Only 3 percent felt that growth in 2005 would be "negative."

"The responses to this survey have provided us with insight into trends taking shape and factors influencing the local residential real estate market," said Massimo Bianchini, President and CEO of Anderson Associates. "I believe these results predict a positive future for area development, particularly if mortgage rates continue to stay low."

Among the trends taking shape are that buyers overwhelmingly want larger homes, say 85 percent of respondents, with homes between 2,500 to 3,000 square feet representing the most popular size, say 44 percent of respondents. Twenty-five percent of respondents said buyers want 3,500 to 4,000 square feet, and 19 percent said they want 3,000 to 3,500 square feet.

The survey also examined the types of homes preferred by buyers, and showed that a vast majority of respondents (85 percent) believe buyers want larger homes in traditional (72 percent) styles, followed by "Georgian" (25 percent) and "Country" (19 percent). The survey also showed that the amenities most important to buyers include an open floor plan, proximity to recreation and parks, and easy freeway access.

Today's buyers prefer a family neighborhood setting, according to 81 percent of respondents. This option was followed by communities near schools (44 percent) and near shopping (28 percent). Surprisingly, relatively few respondents (9 percent) felt that fiber optics/high speed Internet availability or structured cabling/entertainment ready were important amenities to today's buyers.  

As in other areas, a conflict is developing between what homeowners with school-age children want and what aging homebuyers want.

An aging population has increased the number of requests by buyers for single-level homes, noted by 63 percent of survey respondents, while 41 percent said the increased numbers of elderly customers creates demand for new retirement communities, and 28 percent felt these consumers will move to condominiums and apartments.

Published: April 6, 2005

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