Low inventory, high demand, multiple offers, and low interest rates make for a robust seller’s market.
A seller’s market is likely to continue for the foreseeable future, particularly in suburban and second home communities. Buyers are keen to find more space, and to take advantage of ready access to parks, trails, forest preserves, and other outdoor fitness solutions. Competition among buyers within the same price parameters fuels fierce competition in these markets. Listings will often see multiple offers which drive up overall sales prices. In addition, historically low interest rates provide more buying power to hungry house hunters, allowing them to purchase more home for the dollar.
Investors and house flippers are finding new opportunities.
A lack of move-in ready inventory has enticed flippers and investors into the market. Flippers are buying up low-priced “fire sale” properties, renovating them, and flipping them for the eager homebuyers who want nothing to do with fixer-uppers. While suburban markets are flush with buyers, a high inventory of inner-city condos creates an environment for price reductions and investor opportunities. Investors are using a hold-and-wait strategy, waiting for the urban market to recover in the next few years.
The market won’t pay top dollar for dated and overpriced homes.
Despite a robust marketplace, savvy buyers are not willing to purchase properties that need to be updated and are priced closely to move-in ready homes.
Transactions will become increasingly accelerated.
The most attractive homes are spending very little time on the market — next to none. Many homes aren’t even making it all the way to market, selling instead through private networks and other agent groups. Buyers looking to relocate to the Chicagoland and surrounding areas from other locales are often hesitant these days to make in-person trips. FaceTime showings with their realtors and online 3D tours have propelled buyers to make offers site-unseen. Due to heavy marketplace competition, buyers must be pre-approved and show proof of funds on cash transactions. Loans are being processed normally so long as a seasoned mortgage professional is on hand to seamlessly navigate the process from purchase to closing.
There may be some challenges in appraised valuation.
Since homes are selling so rapidly with multiple offers, sales prices are often going above asking prices. Buyers and sellers should be prepared for some bumps in the road. An appraiser’s opinion of value might not be the same as market value. Concessions may have to be made around asking price or the amount due as downpayment.
Northwest Indiana and southeast Wisconsin are just a few areas where you might be able to buy a new or newer property and enjoy lower property taxes. These favorable tax conditions have resulted in high demand and over-bidding on properties. Additionally, the traffic, overcrowded schools, and other increased population pressures on the community may leave some buyers second-guessing their decision to move out of Illinois.