It has been a long time since the economy has seen interest rates this low, and it may be a long time before we see them again. Because of this, the housing market is experiencing some new and unique changes.
People who are not too terribly impacted financially by Covid-19 are looking to invest. Those who are impacted financially are looking to downsize. These booming changes paired with the incredibly low overall interest rates to purchase a home in the Chicagoland area is creating a bit of a stir.
So how exactly are current interest rates impacting the Chicago housing market? We have identified three major changes in the housing market that are unique to the current economy and circumstances.
More First Time Home Buyers
For many twenty-somethings in the Chicagoland area, the purchase of a first home seemed like something that had to be a few more years in their future. However, the new interest rates are making the homes appear much more affordable when looking at it from a month-to-month bases, and as a result, many younger people are looking to make their first home purchase earlier than expected. This increase in first time home purchases has a huge impact on the market, as overall sales have shot up for homes listed in that lower price-range.
A Seller’s Market
Because of the increase in demand for homes, this part of the market has seen a huge shift from a buyer’s market to a seller’s market. This means that if you were looking to sell you home, now is the time to do so as demand is high and in very few cases will you have to settle for anything less than your asking price. On the contrary, because of the market, many are making their first offer over the original asking price.
Increase in New Construction
With the lower interest rates, people have become much bolder with their home buying decisions, and as a result, there has been an influx in demand for new construction. The lower interest rates make this option more affordable on a month to month bases than it was in the past, and many are choosing to forgo the traditional home buying experience and instead look into their own custom home.
If you are looking to take advantage of the lower interest rates to either buy or sell your home, and you need a real estate attorney to ensure that you get the best deal possible in the process, contact Gurney Law Group today. Our experienced attorneys can provide legal representation to help ensure a smooth and efficient transaction.