With rising mortgage rates, home prices, inflation, and the lack of homes for sale on Chicago’s North Shore, there are many reasons to be frustrated when looking to buy a home right now. And while it may feel challenging to both find a property and close the deal, there may be good news on the horizon.
“While the median list price for a home is still a staggering $435,000,” Realtor.com reports. “Prices [recently] dropped for the first time in six years—by $15,000.”
The industry outlet goes on to state that the national inventory of active listings increased by 30.7%, a record-high growth rate. “As a result, the housing market may be headed toward a state of balance not seen since the COVID-19 pandemic led to a full-blown seller’s market,” they speculated.
So what can you do this year if you’re ready to buy but feeling fed up with market conditions? I’m sharing three tips below on how you can still buy a home despite all of the above.
Buy a Starter Home
With rising mortgage rates and inflation, it may be time to shift your expectations on what type of home you will buy, so perhaps consider a starter home instead. The easiest way to better position yourself in the market may be to adjust the number of bedrooms, square footage, or amenities you’re looking for in a home in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, or the surrounding North Shore communities.
The rule of thumb is that you will build equity in that home if you plan to live there for five years or longer. And once you do build equity, you’ll be in a stronger position to buy your next home. Just be certain you feel good about compromising— don’t settle just to get into a home or end up purchasing one you don’t like.
Be Ready to Negotiate
We are coming out of a seller’s market where power was essentially taken away from buyers, but now we are starting to see the reversal of that. Homes are now sitting a little longer on the market which means buyers can attempt to negotiate on price.
Get Pre-Approved
I always recommend pre-approval as the first step for homebuyers in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, or the surrounding North Shore communities. Not only does your pre-approval letter mean you can act quickly if you find a home that you love, but it shows the seller that you’re serious which could get you under contract much faster and help you secure the deal.
Questions about buying a home on Chicago’s North Shore? You can count on me to help you navigate the market!
I look forward to hearing from you!
Janie Bress
Your North Shore Real Estate Expert
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