When the housing market cools down, two things happen. Motivated sellers slash list prices, and sellers thinking of entering the market hold back, which contributes to a low level of inventory.
Responding to hesitant and unmotivated buyers looking for houses for sale, sellers around the country are cutting prices, even in markets that have until now seen a reasonable level of appreciation and absorption of inventory. Chicago is feeling the pinch and sellers with houses to sell are responding. While the data points vary by neighborhood, in general, one in four houses for sale has seen at least one price drop. It’s a buyer’s market and there are some incredible opportunities to take advantage of.
But how to find these good values? A buyer’s agent with a deep level of market knowledge coupled with a data-driven approach is one key to success. Whether you are a first time home buyer, empty nester, savvy buyer or investor you need an experienced buyer’s agent at your side. With our 34 years of experience through many upticks and downturns in the Chicago real estate market, you can embark on your home buying journey with confidence.
&Sellers are responding to cautious and unmotivated buyers by reducing list price and setting reasonable and realistic prices for their homes based current market trends.
&Though price cuts are a common strategy when houses do not sell, the widespread trend of price reductions in response to the current market means buyers should look closely at not only home prices and recent price reductions but at data-driven Comparable Market Analysis of the home they are keen to purchase.
&There was a drop in new construction home sales for the first half of 2018 but this trend leveled out mid-year and a slight uptick is now trending. New construction homes are now entering the market competitively priced.
&Millennials dominated the market going back to 2017 by paying sky-high rent prices and are now entering the homebuying market. Millennials have also shown they are pouring into urban markets, choosing to live, work and play within a tightly knit geographic area. This could mean we see prices slightly rise as we enter Q1 and 2 2019.
Bottom line – if you are looking to buy a house or condo, work with an agent who can analyze the market data while helping you find your dream home.