Should I Sell My Home This Winter? | November, 2022 Market Update | Western Suburbs of Chicago

Should I Sell My Home This Winter? | November, 2022 Market Update | Western Suburbs of Chicago

There’s no denying that the market is shifting, and that may leave you wondering if it’s a good idea to sell your house and move right now. Ultimately, your personal needs are the biggest factor in determining whether or not it’s the right time to make a move. If so, many sellers will find themselves in a favorable financial position to move, for the following three reasons:

  1. It’s still very much a sellers’ market
  2. Millennials are still looking for homes
  3. Equity is at historically high levels

For an estimate of your home’s current value or suggestions for getting it market-ready, contact me today.

Did you enjoy this video or find it helpful? If so, be sure to 𝐋𝐈𝐊𝐄, 𝐒𝐇𝐀𝐑𝐄, & 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄 to my YouTube Channel.

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Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Eric Andersen Homes
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
🌎 www.ericandersenhomes.com

I have a number of awards and designations, including:
⭐️ Platinum 2021 Top 1% Sales Award (Mainstreet Organization of REALTORS®)
⭐️ Top 3 REALTOR® in Brookfield, IL (2021)
⭐️ 20 under 40, class of 2021 (Mainstreet Organization of REALTORS®)
⭐️ Gold 2020 Top 3% Sales Award (Mainstreet Organization of REALTORS®)
⭐️ Endorsed Local Provider (RamseyTrusted)
⭐️ Best of Zillow
⭐️ Pricing Strategy Advisor (National Association of REALTORS®)
⭐️ Certified Staging Consultant (Mainstreet Organization of REALTORS®)

Transcript:

This is the worst time to buy or sell a home—or so the headlines say. And maybe it is. Interest rates are high, and low inventory has kept the market competitive. But the main thing is something the headlines can’t tell you, and that is whether or not it’s the best time for you to make a move. I’m Eric with Eric Andersen Homes, and the articles, like online estimates of your home’s value, have a critical flaw. Neither have the slightest knowledge of you or your circumstances. Whether or not it’s a good time to move depends on you. There are great reasons to move—you’ve just gotten married, you’re relocating, or an empty-nester—and there are terrible reasons to move—you have Zillow fever and can’t stay in one place for more than ten minutes. I personally am in the process of moving, and it is absolutely the right time for me and my family. My stepfather recently passed away and my mom’s living with us, and we need more space. Yes, interest rates are more than double what they were when we bought. But our equity has also gone up, and it took us less than two weeks to find a buyer. So yes, it makes a great deal of sense for us to move right now, both personally and financially. Is it the right time for you to move? I can’t tell you that in this video, but I can give you some facts to work with so that you can make an informed decision. Specifically, we’re going to look at inventory levels, demand, and equity. The first thing to note is that while the supply of homes for sale has been increasing, it’s still very low overall, as you can see in this chart. Here, you can see how heavily the balance is tilted in the seller’s favor, based on national trends. We call it a buyers’ market when the supply is greater than seven months, and today, it’s less than half that, at three months. The local inventory is even lower. In Downers Grove, there’s only a one point three months’ supply of homes for sale. Burr Ridge is the most saturated of these four markets, and they only have a two and a half months’ supply, which is well below the national average and still very much a sellers’ market. While rising inventory may make for slightly longer market times and give buyers a little more breathing room, you definitely have not missed your window to sell. Six months ago, sellers were getting multiple offers and buyers were waiving appraisals and inspections. Today, maybe you only get one offer and the buyer has an inspection. But conditions are still very favorable to sellers, especially for those who list now while others wait until after the holidays and look toward the spring market. I’m living proof of that. We had over 20 showings at my home and interest from multiple buyers. I’m sure the trolls will come out and tell me how awful the market is, but I practice what I preach. I sell homes for a living, and I’m selling mine as I speak. Those who wait to sell will face more competition from other sellers as inventory continues to increase. The second thing to note is that there are still buyers out there. There is always a demand for homes. Buyers relocate, get married, and their family sizes increase and decrease. Even when the pandemic was at its peak, people were moving. The market was never more active than it was then! And there are still buyers looking for homes today, despite higher mortgage rates. Demand has eased, but there is a significant demographic looking for homes right now. Namely, millennials. A recent article in Forbes said, “At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.” While the stereotypical millennial is still living in their parents’ basement, they’re spending less time gaming and more time on Zillow. As the largest generation, millennials are a driving force in the housing market. This is why your Instagram feed has been flooded by REALTORS®. They’re trying to reach the millennials. So we’ve considered inventory levels and demand from millennials. A final thing to consider is affordability, particularly in light of rising interest rates. And even those may have peaked. This week, rates dropped by the largest percent since I was born, by nearly a half percent. Plus, you may have more equity in your current home than you realize. Mark Fleming, Chief Economist at First American, said, “. . . homeowners, in aggregate, have historically high levels of home equity. For some of those equity-rich homeowners, that means moving and taking on a higher mortgage rate isn’t a huge deal.” How much more equity do you have? While we’d have to look at that on a case-by-case basis, you can get a general sense by looking at the increase in home values over the past three years. As you can see, over the past three years, homes in Burr Ridge have appreciated by thirty percent, up from five hundred sixty thousand in January, 2019 to seven hundred thirty thousand as of October, 2022. Downers Grove is up twenty percent, from three hundred thirty two thousand two hundred fifty three years ago to four hundred thousand today. Hinsdale is up fifteen percent, from eight hundred fifty two thousand five hundred to nine hundred eighty two thousand, and Lemont is up twenty four percent, from three hundred seventy four thousand to four hundred sixty four thousand nine hundred fifty. So there’s some data to help you decide if now’s a good time for you to sell. If you’d like an estimate of your home’s current value or suggestions for getting it market-ready, contact me today. I’m Eric with Eric Andersen Homes, a family-owned brokerage where we treat our clients like family.

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