Crazy Buyers Market Question and Answer

 Question: We are first time homebuyers. What is going on with this crazy buyer’s market?

Answer:  Any prospective buyer who thought last year’s dramatic jump in home prices was rough, should be prepared for this spring to be even worse. A home buyers nightmare of fast-rising housing prices, increasing mortgage rates, and record-low inventory of homes for sale is likely to present a tough real estate market for those looking to purchase a new home.

The nation has been stuck in a housing shortage for a while now, but it’s now grappling with the fewest homes for sale ever. The lack of inventory is happening at the worst possible time as more Americans are hitting their prime home-buying years—and not finding anything on the market. The Covid Pandemic has only accelerated the problem as buyers sought out more spacious homes.

Buyers will probably pay more for housing, as prices continue accelerating. Last year, all-time-low mortgage rates helped to offset the higher prices. But buyers won’t find that relief this spring now that rates are at 4+% - which may significantly increase a borrower’s mortgage payment.

That doesn’t mean it will be impossible to successfully purchase a home, it just won’t be easy.

The competition from other buyers could thin out a bit as more folks are priced out of homeownership. If there’s less demand, it could mean fewer (or at least less heated) bidding wars that don’t result in mind-boggling offers over the asking price.

It would make sense that, as mortgage rates rise, home prices would fall or at least stabilize. Logic would suggest that there has to be some limit on how much buyers can afford to spend on housing. Right?  

Nonetheless, in the short term, instead of prices stabilizing, they’ve been shooting up at a faster clip, as home shoppers rushed into the market hoping to lock in a home at a low mortgage rate before rates rise even further.

Are home prices going to fall in the near future? It would require a tsunami of newly built homes going up for sale for prices to stop their seemingly unstoppable rise. And that doesn’t seem likely as builders have struggled to ramp up construction and the demand for housing just keeps growing.

Rising interest rates and a very unstable economy are factors to watch!

Zip Liner Traffic

Zip Liners find congestion down the line!

 https://www.youtube.com/watch?v=TyjMyY1JFYk

The Incredible Sellers Market

We have never seen a market for selling, this good. Illinois and Indiana.

Not so good as a buyer, but incredibly good as a seller.

What we have read is that this up surge could last well into 2022 raising home prices a bit higher.

But, we live in a very volatile World.

Some economists are worried that inflation and rising interest rates could trigger the burst of the housing bubble, by losing many potential buyers who no longer can qualify for a home.

No one can predict the future. All we know is the past and present and it is an amazing sellers market now !

We totally understand if you are planning on staying in your home, we just want you to be aware of the incredible sellers market.

Real Estate Market Report

 Here is a quick and to the point Real estate market report:

1. It is a fantastic sellers market in Illinois and Indiana.

2. Sellers cannot lose if they sell their home through a Real estate company. (Especially through us).

  For example....if a Home price is listed lower, there will be more buyers and the competition will create a multiple offer situation, and ultimately a higher sales price.

If a seller Prices their home a little higher, there will be less buyers, but still, the home will go for a bit more than listing price.

3. Appraisers are the only ones who can burst your bubble and tell you that your home has sold for too much. Yes, even though the buyer qualifies for that sale price and still wants your home at this higher price. But....

We have an excellent system, that we present to the appraisers, so your home sale price is approved by the appraiser or at the very least, close to the agreed upon price.                                                                           

This is called "Our 30+ years of Experience bonus to you."

4. Homes are selling fast when you use a Real estate brokerage. Our last 3 sales sold in less than 5 days. All with multiple offers.

5. Sellers can choose the best offer, because there are multiple offers to choose from. Best offer is not only price, but also amount of down payment, type of financing or cash offer. We can advise you all the way.

6. Sellers can dictate the terms of the sale.                                                                        

These include possession time, closing date and amount of Earnest money deposit.

7. These remarkable home prices may not last with the current economic conditions of the country. Many buyers may lose there qualifying status. Fewer buyers means lower demand, and prices could stabilize or fall. Nothing lasts forever, as you well know.

If you've been considering a move, now is a great time to sell your home.

Call us, we will always protect your interests and provide marketing that reaches all qualified buyers.

Our experience will yield a higher sales price, there is no doubt about this.                        And, we know how to solve the many problems that arise when selling a home.              

That's why we have been in business for over 30 years, with the majority of our business coming from client referrals.

Interesting USA Facts

 Nearly one out of every 715 people in the US died from coronavirus in 2021. That's 464,000 people. 

In 2021, 34 million Americans tested positive for COVID-19, up 70% from 20 million in 2020. As of January 31, 2022, 75% of the population had received at least one COVID-19 vaccine. Twenty-seven percent had received a booster shot. Personal healthcare spending was $3.4 trillion in 2020, a 4.5% increase from 2019. Twenty-eight million Americans (8.6% of the population) did not have health insurance in 2020, up from 8% in 2019. Preliminary data shows that 3.4 million people died in 2021, 13% more than in 2019. The top three causes — heart disease, cancer, and COVID-19 — accounted for 50% of deaths. The federal government spent $141 billion on public health in 2021 — a 21% decrease from 2020, but more than double its 2019 public health spending. 

Neighbors Tree is Blocking My View

 Question: About five years ago I contacted a neighbor whose tree was obstructing our view. Granted the tree has been slow growing, but it still blocks some of our view. Though I offered to pay for its removal, she declined my offer, and I respectfully let it go. She was elderly, and when she died I respectfully contacted her daughter and again asked that the tree be cut down. The daughter said that she would sell the house and it would be up to the new owners. Other neighbors who also have obstructed views have contacted me and asked me to please find a solution. We all know that our property values are being adversely affected by this problem. What can we do?

Answer: What kind of view is it blocking? Was the offending tree in place when you bought the property? If so, you knew it was there. You also knew that trees don’t shrink, they get bigger. But you still bought your home knowing this.

Your neighbor may feel that the value of her property would drop and her privacy would be reduced if she removed the trees, thus her reluctance to trim and chop.

At least the daughter has offered a possible resolution to the problem: Welcome the new buyers to the neighborhood and discuss the concerns you and your neighbors have about the trees ... perhaps they will be more open to your trimming & chopping suggestions. Maybe a chainsaw for a housewarming gift will provide a stronger hint!

Comparison of Home Prices Across the USA

 

From Ann Oster of  Proper Rate Mortgage.