What might happen if you wait until next year to sell?

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By now you likely have heard that the North Shore market is “crazy” or “hot” or something along those lines. Well, that’s not too far off the mark! The Spring 2021 real estate market on the North Shore has been unprecedented, something not seen since before the mortgage meltdown of 2007-2008.

Why is the market like this? There are a few reasons, and the COVID-19 pandemic isn’t the only contributing factor. Interest rates are low, making financing very appealing and more affordable than it has been in years. Chicago is still largely shut down as far as entertainment goes, making it less appealing for home buyers. Those with school-aged children are realizing that they not only want & need more space in their houses, but also that they want to be in districts where schools were open the past year.

Ok, so that explains why people are buying. But it doesn’t explain why there aren’t enough homes to buy, right? Without oversimplifying, the most significant reason that inventory is not as readily available in the North Shore right now is because the ‘typical’ home sellers aren’t moving like they had planned on. Senior home sellers who would be moving to condos and assisted living type communities have been reticent to make those moves during the pandemic. It’s also been much more difficult for them to get into the senior living facilities than it was prior to 2020.

In addition, many people were ready to move out of the state when the pandemic hit. But the issue is that there is literally no inventory across the whole country. Especially in those states that are warmer and haven’t been hit with drastic Covid lockdowns.

Lower inventory paired with higher demand makes for a competitive real estate market. When the home buying competition gets too stiff that many buyers find themselves unable to secure a home, they have to make alternate plans.

So what does that mean for you if you’re thinking of selling your home? Well, the short answer is that you may likely be up against more inventory on the market if you wait until next year to do so. It may also mean lower prices. Why? Even if interest rates remain low, there are many indicators that point to an upcoming “distressed” market. That’s not said to make you panic, but there are millions of people across the country in forbearance, and when that program ends, may find themselves unable to afford to make up the payments.

Those homeowners may be pushed into selling as no other option, which likely will result in an increase of short sales. An increase in the distressed properties on the market will eventually have an impact on overall pricing, and will contribute to the increase of inventory available.

As always, things can change. We don’t have a crystal ball but our research and knowledge of the real estate market and economic factors indicate that this “hot” spring market is likely not going to last much longer. If you think you might want to sell your home and are curious what that entails, please give us a call. We’d love to chat with you and give you our insight.

The Spaniak Team - eXp Realty is one of the top producing real estate teams in the Chicagoland area specializing in the North Shore of Chicago. They can be reached at (847) 379-8813 or at [email protected], or on the web at www.SpaniakTeam.com

by Heather Johnston, Chief Operating Officer, The Spaniak Team - eXp Realty

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