October, 2023 Real Estate Market Update
If you’d like help selling or buying a home in Burr Ridge or the western suburbs of Chicago, contact me today!
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Eric Andersen Homes
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
🌎 https://www.ericandersenhomes.com
Did you enjoy this video or find it helpful? If so, be sure to 𝐋𝐈𝐊𝐄, 𝐒𝐇𝐀𝐑𝐄, & 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄 to my YouTube Channel.
Want to know what your home is worth?
https://www.ericandersenhomes.com/go/home-value/
Looking for homes for sale? Search the entire MLS on my website: https://www.ericandersenhomes.com/homes-for-sale/
Or, better yet, contact me directly for help with buying or selling a home: https://www.ericandersenhomes.com/contact/
I have a number of awards and designations, including:
⭐️ Gold, Diamond, & Platinum Sales Award (Mainstreet Organization of REALTORS®)
⭐️ 20 under 40 (Mainstreet Organization of REALTORS® class of 2021)
⭐️ Endorsed Local Provider (RamseyTrusted)
⭐️ Best of Zillow
⭐️ Pricing Strategy Advisor (National Association of REALTORS®)
⭐️ Certified Staging Consultant (Mainstreet Organization of REALTORS®)
Transcript:
The biggest misconception about today’s market is that high rates mean it’s a buyer’s market. Yes, rates are crazy high right now when compared with just a few years ago. Even so, rates are still quite reasonable when considered from historical rate averages. I’m Eric with Eric Andersen Homes.Younger buyers have been spoiled by three and four percent rates, which is all they’ve ever known. But it wasn’t all that long ago that Bon Jovi was rocking a mullet and selling out arenas, and mortgage rates were close to twenty percent. To put a spin his great anthem, we’re not even halfway there. But today rates are higher, and buyers are considering everything from adjustable rate and assumable mortgages to seller financing in an effort to get a lower rate. Today, rates are over seven percent, and home values have only continued to increase, too. Despite affordability being at an all-time low—one stat I saw said it would cost the average buyer something like forty-two percent of their income to afford the median-priced home in America—it is *still* a seller’s market. Why is this? It boils down to one issue: lack of inventory. With rates being as high as they are, sellers are reluctant to make a move. Those who are selling generally don’t have much of a choice. They may be relocating, selling an estate, downsizing, or need more space. And regardless of what interest rates do, there is a perpetual demand for housing. Couples get married, have children, need more space, want to buy their first home, move for work—you name it—and there is not enough supply to keep up with baseline demand. That basic economic principle—not enough supply to keep up with demand—is why it’s still a seller’s market. In Downers Grove, there’s still less than one and a half months’ supply of inventory. Naperville still only has just over one months’ supply. Hinsdale is at a two months’ supply, and Burr Ridge is at two and a half. For context, a balanced market has about a six months’ supply. If you are looking to sell, the market is still excellent. And if you need to buy, I’m well-versed in helping clients write strong, competitive offers without getting too crazy. If you’d like my help, reach out anytime. I’m Eric with Eric Andersen Homes, a family-owned brokerage where we treat our clients like family.