The weather forecast in Illinois every spring could mean sunshine one day and frigid temperatures the next. Your child may want grilled cheese for dinner one moment, and in the next, suddenly nothing but peanut butter and jelly will do.
With the exception of the examples just listed here, few things change as rapidly as the real estate market does. But if you keep a careful and frequent eye on the market and pay attention to the latest trends, you can accurately choose the proper time to sell your home, to purchase a new home, or to simply invest in real estate. Here is some advice on how to stay smart in the 2019 housing market.
Know About Rising Interest Rates
Forbes warns those looking to buy a home or invest in the real estate market this year that despite the fact that mortgage rates have been decreasing over the past several months, it is predicted that mortgage rates will soon rise. Although recent trends have a 4.5% interest rate with a 30-year fixed mortgage, that number will climb to 5% in the very near future.
Stay Smart in Slower Markets
Sellers and buyers, be aware that these rising interest rates will mean a higher demand for affordable homes. This means that many Millenials are currently looking to purchase their first home. Open Door warns sellers, in particular, to not overprice your home when the real estate market is like this; it’s best to use a home value tool in order to accurately estimate the value of your home in today’s environment.
Look to Second Cities
Forbes emphasizes that “high prices in first-tier cities are forcing many home buyers and investors to consider second-tier cities in search of better value.” Expect this trend to last at least through the end of 2020 if not longer.
Whether you're looking to buy or preparing to sell, The McKay Group represents some of the best and brightest real estate professionals in the industry, guiding you through the world of all things home-related. For additional insight and advice on achieving your real estate goals, contact us today at 630-513-0104 or fill out our online form for information tailored to your needs. Like us on Facebook to stay up-to-date on current events and tips.