Chicago Real Estate
things to consider before buying or selling
The U.S. housing market narrowed by 9 percent over the past 12 months according to a Zillow report. We all knew with less inventory out on the market that home values would go up (8% according to Zillow).
So, know you ask the question...Is it a good time to sell? Well, it all depends on your goals. If you are looking for your dream home in a small market, you might be paying more for it (supply and demand). But, here is a factor that you might want to consider. As predicted, mortgage rates are on the rise as well and plan on going higher. Currently (4/16/2018), a 30 year fixed is around 4.73% and that is up by .50 from last week. There are a lot of predictions that we will be seeing mortgage rates at or over 5% by the end of 2018. Remember, just 10 years ago, we saw rates at 6.5% and that completely closed the doors for most people looking for their dream home. In fact, a lot of people didn't start purchasing homes until rates dropped under 5%.
My opinion, with mortgage rates and home values on the rise and inventory down, this might be the best time to find your new house, to lock in a lower mortgage rate, and lower purchase price; because the market is just showing higher rates and higher prices for awhile. If you are looking to sell, this may be the best time because predictions of less mortgage applications with increase mortgage rates will slow down the housing market near the end of 2018.
I am a Chicago Real Estate Broker that loves to show people around the Chicago neighborhoods.