Click here to close now.




















Welcome!

News Feed Item

Half of Illinois Residents Likely to Buy a Home in Next 5 Years, According to BMO Harris Study

CHICAGO, IL -- (Marketwired) -- 06/19/14 --


  • Survey of Illinois residents finds 76 percent of those aged 18-34 will buy in next 5 years
  • Those in Illinois, and especially Chicago, more likely than national average to own a condo versus a house
  • BMO Economics: student debt causing some pause with young homeownerships

According to the BMO Harris Bank Housing Confidence Report issued today, half of Illinois residents (53 percent) plan to purchase a home in the next five years, indicating that confidence in the housing market is high. In Chicago, that number rises to 61 percent. In Illinois, 14 percent of those with a five-year timeline will be first-time homebuyers.

The study showed likelihood to buy is highest among millennials in Illinois, and increases with a longer purchasing timeline:

-------------------------------------------------------------------------
 Timeline for         Ages 18-34   Ages 35-54   Ages 55+     Total Likely
Purchase
-------------------------------------------------------------------------
 Next 12 months       29%          24%          7%            20%
-------------------------------------------------------------------------
 Next 2 Years         41%          33%          19%           31%
-------------------------------------------------------------------------
 Next 5 Years         76%          50%          32%           53%
-------------------------------------------------------------------------

"We had a strong start to the home buying season, and that momentum has carried through for a few months now," said Joe Tunk, Director of Mortgage Sales, Illinois, BMO Harris Bank. "We see this confidence and propensity for activity reflected in the survey numbers, which show that the next few years look like they will be busy for potential homebuyers. For those looking at a nearer-term purchase, we encourage them to get pre-approved to make the purchase experience that much smoother."

According to the study, three-quarters of Illinois residents currently own and one quarter rent. The top three reasons homeowners cited for owning rather than renting were somewhere to call their own (66 percent), long-term investment (64 percent) and more stability and certainty (62 percent). The top three reasons people in Illinois cited for renting rather than owning were financial instability (57 percent), more flexibility and freedom (30 percent) and having to deal with less upkeep and maintenance (28 percent).

"While the housing market is on the upswing, the record level of student debt carried by young Americans does pose a challenge to many in their 20s and 30s hoping to purchase their first home," said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. "Student debt levels have more than doubled in the last seven years to $1.1 trillion. The financial burden means renters are delaying entering the purchasing market, which has a trickle-down effect on the overall housing recovery."

According to BMO Economics, U.S. home prices are still rising. The S&P/Case-Shiller metric is up 12.4 percent year-over-year during the past 12 months (ending March) and 12.8 percent in the first quarter of 2014. Although the annual pace is slightly slower than the post-recession 13.7 percent year-over-year peak hit last autumn (and a cooling is welcome at this point given affordability considerations), prices are still up a cumulative 25 percent from their January 2012 lows.

The study also showed ownership by property type:

-----------------------------------------------------------
                     National     Illinois     Chicago
-----------------------------------------------------------
 House               95%          88%          83%
-----------------------------------------------------------
 Condo/Apartment     5%           12%          17%
-----------------------------------------------------------

At the national level, the poll found:

  • Three-quarters (74 percent) of American millennials will buy in the next 5 years
  • Nearly half (45 percent) of millennials said they will buy in the next two years, and a third (32 percent) will buy in the next 12 months
  • Just more than a tenth (12 percent) of renters say they prefer to rent and never plan to buy

Survey results cited in this report are from a Pollara survey commissioned by BMO Harris Bank using interviews with an online sample of 2,500 Americans, including 250 from the state of Illinois, conducted between April 1st and 7th, 2014. The margin of error for a probability sample of 2,500 is +/- 1.96%, and 250 is +/- 6.2% 19 times out of 20.

For more trends, tips and tools for your financial future, visit bmoharris.com/YourFinancialLife.

About BMO Harris Bank

BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank or credit approval. BMO Harris® and BMO Harris Bank® are trade names used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $582 billion in assets (as of April 30, 2014).

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
Mobile testing is getting harder: more devices, multiple operating systems, higher quality expectations and shorter development cycles. In his session at DevOps Summit, Tom Chavez, Senior Evangelist at SOASTA, will discuss the seven steps to improving your mobile testing process. Tom Chavez, with 20+ years of experience as a product manager in software development tools, works in product management at SOASTA, the leader in performance analytics. He has worked across the Silicon Valley at indu...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Even though you are running an agile development process, that doesn’t necessarily mean that your performance testing is being conducted in a truly agile way. Saving performance testing for a “final sprint” before release still treats it like a waterfall development step, with all the cost and risk that comes with that. In this post, we will show you how to make load testing happen early and often by putting SLAs on the agile task board.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the ...
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
Moving an existing on-premise infrastructure into the cloud can be a complex and daunting proposition. It is critical to understand the benefits as well as the challenges associated with either a full or hybrid approach. In his session at 17th Cloud Expo, Richard Weiss, Principal Consultant at Pythian, will present a roadmap that can be leveraged by any organization to plan, analyze, evaluate and execute on a cloud migration solution. He will review the five major cloud transformation phases a...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Puppet Labs is pleased to share the findings from our 2015 State of DevOps Survey. We have deepened our understanding of how DevOps enables IT performance and organizational performance, based on responses from more than 20,000 technical professionals we’ve surveyed over the past four years. The 2015 State of DevOps Report reveals high-performing IT organizations deploy 30x more frequently with 200x shorter lead times. They have 60x fewer failures and recover 168x faster
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...