If you’ve been thinking about buying a home for a while and can afford a down payment, now might be the time to start looking for your dream home. Interest rates are at a historic all-time low right now and moving towards a buyers market.
One of the best opportunities for buyers is when there is change in the market. While the market might be fearful for some, it brings opportunities for others. Sellers are motivated to make a move and obtain equity and buyers have increased amount of opportunity with reduced interest rates.
Now May Be the Time to Buy
The current market presents an excellent opportunity right now, especially for first-time buyers. You can realize your dream of home ownership in your favorite Chicago neighborhood – and escape the renting trap.
What’s even more interesting is that spring is historically the best time to buy in Chicago.
Why? Because real estate in Chicago is very seasonal. Activity is at its highest between January and May, and inventories are at their highest in the spring, giving you the most possible options for buying your dream home.
The Problem with Waiting
The problem with waiting is that the “dip” you are waiting for may never come. You could wind up waiting forever! Even if there is a dip, you could still paralyze yourself forever with the same question: Should you wait for the market to go down further?
Trying to time the market is unreliable. Study after study shows that almost nobody – not even real estate and investment professionals – can reliably predict short-term market changes before they happen! You can see when things are going up or down, but no one knows for sure when those trends will reverse.
If you’re shopping for the home that you’re going to live in, short-term market fluctuations don’t matter nearly as much as getting a good value on a great home. Markets go up and markets go down. The long-term market trends do matter – but not enough to risk missing a good opportunity for your dream home by waiting for price to get lower.
Focus on What You Can Control
You have no control over the short-term movements of the real estate market. Instead, focus on what you can control:
- Improve your credit – so you can get the best loan.
- Save money – so you can put more down and qualify for a bigger home or better loan terms.
- Pay down debts, so you can get a better debt-to-income ratio.
- Find a great realtor – one who knows your market as well as I know Chicago!
Now, as for the current coronavirus crisis: nobody knows for sure when things will subside. There won’t be any one hard date on which we can say “it’s over.” But at some point, the country will begin getting back to business and when that happens, market sentiment can change very quickly.
When it does, house prices could rise extremely fast as well – much faster than market conditions will change. When that happens, you’ll have missed out on the opportunity to capitalize on the lower interest rates and will remain on the sidelines waiting for the market collapse that never comes.
If you buy a well-built, quality home in a good neighborhood that you can afford to maintain, long term, well, that never goes out of style! View the most recent market stats by clicking here.