Is it a good time to buy or sell real estate?

With winter and the holidy season approaching, many homebuyers and sellers in the Chicago area assume now is the time to put real estate matters on hold. In the current market I think that the idea of hibernating for the winter may not be the best decision. Here are some reasons why right now is the right time for both buyers and sellers to be in the market.

Buyers, consider this....
1. Price - The #1 reason qualified individuals are reluctant to buy today is a fear that prices will fall. And they may. But in the long run, that shouldn't make a difference.  Housing affordability is the best it has been in a very long time.

2. Interest Rates - Mortgage interest rates are 30% lower than they were four years ago. When you layer today's rates on top of prices that are 30% lower, you get monthly principal and interest that is only slightly more than half of what it was four years ago. That's a big deal!

3. Long-term Financial Benefits - While significant short-term price appreciation is unlikely with the current market conditions, the long-term financial benefits of homeownership still provide validation for owning versus renting. Renters do not get to take advantage of deductions for mortgage interest and real estate taxes, and do not benefit from protection against inflation or the forced savings plan that homeownership provides.

Sellers, take this to heart....

1. Buyers Are Serious - It may be fun to drive around and look at open houses on a beautiful summer day, but when the weather starts to turn and people get busy with holiday schedules, shopping for a new home is usually the last thing on someone's mind...unless, of course, they actually need to buy. Sure, there are fewer buyers in the fall and winter, but the ones who are out there are serious.

2. You're Moving Up - The thought of losing equity on a sale doesn't appeal to anyone, but in this market, sellers who trade up have more to gain than to lose. That's because, dollar for dollar, the more expensive home they're buying almost certainly has come down in price more than the home they're selling, which means move-up buyers will actually come out ahead provided they have the finances to complete a transaction.

3. Less Competition - The inventory of homes for sale is very high - that is the main reason that prices have continued to fall.  However, the number of homes for sale in the fall and winter is generally about 25% less than in the spring. Additionally, the recent moratorium on foreclosures has kept thousands of homes off the market. Those homes will eventually be put up for sale. So if you can capture the last few weeks of fall, you will face less competition than if you wait until next spring.

To talk about your specific real estate needs, call or e-mail me today. And please remember that I always appreciate your referrals.

Thank you for reading!

To find any home for sale in the Chicago area, click here.

Comments

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One of the most important rules to get the best price for your property is to convince his best when potential buyers come to see. The season has a lot to do with that, almost without exception, the houses are in their best performance in the summer when the exterior design shows its effect ..

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I find them very interesting and informative. Just want say thank you for the information you have shared.