How do I know if it’s a Buyer’s or Seller’s Market?

Many factors can influence the housing market; these include mortgage interest rates, inflation, employment figures, and the economy. If you are planning to purchase or sell a home, it is good to know if it’s a balanced, buyer’s, or seller’s market. 

Balanced Market

A balanced market means about equal supply of homes and demand for homes. Home prices increases are typically in line with the average rate of inflation. There is a 3-6 month inventory of homes (meaning it would take 3-6 months to deplete the number of homes for sale at that given time, at the current pace of home sales).  Homes are most likely selling for at, or close to, list price.

Buyer’s Market

This is also known as a ‘soft’ real estate market and it favors those buying homes. This is due to an oversupply of homes, as more people are selling than buying. The advantage is that there is a greater variety of homes to choose from, typically at lower prices. You will notice that there are an abundance of real estate ads trying to attract buyers, and homes prices may be dropping. There is usually more than a six-month inventory of homes available.

Seller’s Market

It is known as a ‘hot’ real estate market favoring those selling properties, as more people are looking to buy properties than those willing to sell. Property prices typically increase, as buyers are prepared to spend more in order to get the home that they have set their heart on. Sellers are at an advantage as their homes sell quickly, and at a higher price than the long-term average inflation rate. You may notice that real estate ads decrease; inventory levels are traditionally less than three months.

What the market like right now?

One way to determine if it’s a buyer’s market or a seller’s market is to look at inventory (the number of homes for sale). If inventory is low, it is most likely a seller’s market… high, then a buyer’s.

Keep in mind too, that the real estate market can be influenced by the season. Typically, there are more homes for sale in June, July, and August. That means that it could be a seller’s market in the winter but a buyer’s market in the summer. 

Market conditions fluctuate as well based on the area. Cities with a lot of available jobs and growing industries will often be a seller’s market, while those with struggling economies most likely favors buyers.

I monitor our local market conditions and have access to timely reports because of my real estate license and REALTOR® designation. I share vital info that helps you make the best home buying or selling decisions. Let’s talk soon about your home and neighborhood if you are on the fence about making a move. 

So… you are ready to buy or sell a home and not sure if you should go it alone, or bring on a professional real estate agent to assist you? As a REALTOR®, I’ve had this conversation with many clients.

Here are a few great reasons to use a professional REALTOR®

Access to the MLS

The MLS is the most up-to-date database of all homes for sale. Having your home listed on the MLS is also important because the thousands of agents in that same MLS have exclusive access to your home’s information. The MLS is their go-to, daily resource for finding homes for their buyers.

You need to reach as many potential buyers as possible. For sale by owner listings do not get as much online exposure a home in the MLS does.

Marketing

Great online and offline marketing ensures that your home gets noticed by buyers that are searching for the amenities your home has to offer. Taking quality photos, promoting your home’s best features, and tapping into a variety of marketing avenues takes time and energy. Also, networking and word-of-mouth is still very powerful. Real state pros network all day, every day. Realtor.com, a top home search site on the web, only advertises the homes listed on agent-access only MLS.

Questions and Negotiation

It’s inevitable you will have questions that only a knowledgeable and experienced real estate pro can answer. What a time-saver! Looking out for your best interests is what a REALTOR® does, so going to bat for you when a buyer is asking for concessions comes natural to us.

Guidance and Follow-Through

Guidance comes in many forms, from helping you correctly price your home, preparing it for showings, understanding the nuances of local market conditions, to making decision during the negotiation process. Getting successfully to the closing table means relying on your REALTORS® trustworthy advice.

Great communication with all parties, and follow-thru on the dozens of small (and big) tasks that accompany selling a home is crucial. You most likely have a full-time job. Can you really dedicate the time required to prepare, price, market, show, negotiate, schedule appointments, monitor, return calls, and overall keep your home sale on track?

There are many more reasons why working with a pro like me makes great sense that I’d love to share with you. Let’s visit about your real estate needs soon if you are contemplating a home purchase or sale in the Chicagoland area.

What My Website Offers Home Buyers and Sellers

In real estate, it’s important to have a website that has a great home search and more. I am proud of my site. Here are many ways my website makes your home sale or purchase journey a little bit smoother!

Easy, Robust and Mobile Friendly Home Search

Start by entering a CITY or ZIPCODE ON ANY PAGE, then narrow your requirements for an interactive map of homes meeting your needs. Ask me for more info and save your searches.

Timely Listing Alerts for New Properties

Sign up for listing alerts by registering on my site and you’ll get an email as soon as new homes matching your needs come on the market.

Detailed Property Info with lots of Photos

Well-presented with lots of good-sized photos and home details, a map with directions, virtual tour and an easy way to request a showing or more info, my property pages also share community info like nearby restaurants, shopping and entertainment.

Community Info on the Areas I Serve

Not only can you see just the homes for sale in a particular area, I offer links to Village and other local resources.

Easy Way to Reach Me

I want to be at your fingertips when you have a question. I respond to inquiries and email ASAP!

A Great Home Search App for your Phone

A quick download, and you have a great app called HomeSnap. It’s great for the afternoon drive when home shopping. 

Buyer and Seller Resources and Information

I have links and articles that inform and educate.

Free Neighborhood Sales Report

Easy and fast! Simply enter your address and email and get a REPORT in minutes.

Sign Up Form to Stay in Touch

Only when I have something valuable to share will you hear from me via email. 

Reviews and Testimonials

Hear what past clients have to say about working with me.

Blog Posts that Inform

Once a month I post helpful info for buying or selling on my BLOG.

Mortgage Calculator

See what your monthly payment will be and get an amortization breakdown.

I also have Videos and Links to my Social Media Sites!

My website is a great tool, but nothing replaces a face-to-face talk! Contact me anytime for professional real estate guidance.

The Future of Home Prices: What’s in Store?

Housing prices have continued to increase over the last few years, caused by a shortage of available homes; real estate inventories of existing and newly constructed homes have continued to be low.

The second quarter of 2018 saw a slight increase of inventory, but the supply of new homes is still relatively low, except in some of the largest metro areas. 

The general concern was that the gradual hikes in interest rates would negatively impact home prices, but this has not happened, nor does it seem likely that future hikes will affect them in the near future.

There is a tendency to look back to the housing crisis of a decade ago and to how it happened due to the downturn in the economy. Economists and other experts who have predicted another recession within the next 18 months have also forecast that housing prices will most likely not be affected and that we will continue to see appreciation, even though at lower figures than now.

Experts agree that the determining factor on the direction which housing prices will take is mainly dependent on supply versus demand.  With over 5 years of demand exceeding supply, we have seen an average annual appreciation of 6%, almost double to the 3, 6% of the period before the boom.

Price appreciation will slow as housing inventory increases and the predictions are that we will be seeing an average growth of 5, 1% over the next 12 months. 

Even though there are likely to be further increases in mortgage rates and construction costs as we approach 2019, indications are that as we head into a worldwide recession by 2020, the U.S. economy will stay stable and it is expected that there will be increased job opportunities for our citizens. 

All indications point to the continuance of the seller’s market we are in for some time to come.

Curious about the future of your local home prices? I have access to data for your area, let’s talk soon.

The debate about homeownership versus renting has continued over many decades and there is always a consistent winner – homeownership. Even with a continual annual rise in the prices of most average US homes, the consensus is that it is still cheaper to buy rather than to rent; with differences ranging from 20% to 50%, depending on the suburb, city or state, making for a nationwide saving of 37.7%.

To get the most benefit from homeownership, you would have to own your home for at least seven years. Of course, the cost of a mortgage would have to be at reasonable levels, like they have been for a number of years.

Building equity is one of the essential reasons for preferring to purchase over renting, and it is a sure hedge against rising inflation. For most people homeownership is the closest they will ever come to having a savings account.

Besides saving on rental inflation, owning your own place also allows you to have the upper hand on how you maintain or renovate to suit your family’s needs.

A large portion of the money saved will come from the following tax benefits*:

• On a loan of $1 million or less, the interest paid on your mortgage may be deductible
• Property taxes, except for payments into your escrow account, may be deductible
• Your insurance premium may be deductible according to your family income
• Energy- saving improvements come with a 10% tax credit of up to $500
• Capital gains tax exemption on the first $500,000 for married couples, and $250,000 for singles

*Consult with your tax advisor on the above scenarios.

I am a listing specialist in the Chicagoland area. Reach out for proven expertise and representation.