This downhill slide in home sales and activity in general has hit bottom, but it is starting to creep up a bit too. The increases are across the board: sales, inventory, buyers, and ACTIVITY! It has been a nice, calm market and now things seem to be getting a bit more heated, aggressive.
Want my advice?
I would buy right now, while rates are at historic lows and sellers are staring down the next season—winter is coming, after all. Sellers are more flexible, and that lower selling price will make anything affordable. And you’ll beat the 2020 spring competition, which can cut into your maximum purchasing power.
Don’t just take my word for it. Here’s some Chicagoland data to support your move:
- 2.75%-3.65%: Current mortgage interest rates on standard loans
- 3.75%-4%: Current mortgage interest rates on jumbo loans ($485k or more)
- $237,670: Average single-family home
- $238,386: Average 2-bedroom condo
- $247,078: Average townhome
- $315,217: Average 2-4 unit building
Compare that to the average monthly costs of the following:
- Single-family home: $1,482
- 2-bedroom condo: $1,507
- Townhome: $1,563
- 2-4 unit building: $2,036
These monthly costs are lower than they have been from 2015 to 2018, and since we have seen prices creep up the last 45 days we believe that the low threshold has been met. Carry yourself over that threshold into your new abode!
Graph Source: ConnectMLS- InfoSparks