For those pondering the timetable for selling their Chicago house, last week’s developments may add a couple of +++ into the “sooner” column. There are always pros and cons about listing in the fall versus waiting for the spring and summer market—but last week’s information could tilt toward acting now.
First (and most well-publicized) was the outlook for home loan interest rates…again! The news wasn’t unexpected, but the accompanying commentary added a compelling note. The Fed again lowered their benchmark rate by .25%, which is very likely to keep mortgage rates in the historically low range for homebuyers—but the Fed Governors also made it clear that this is very probably their last action for a good while. As Bankrate.com observed, “policymakers signaled they’re ready to hit the ‘pause’ button on additional cuts.”
In other words, for buyers who’ve been patiently waiting for the best possible home loan rates, they will likely decide they’ve waited long enough—the coming mortgage rates are unlikely to dip much lower. For those thinking of selling their Chicago house, low rates mean that buyers find higher asking prices acceptable since lower rates equate to more affordable monthly payments.
Today’s buyers have demonstrated pronounced sensitivity to that bottom line.
The second news arrived as a less-publicized cluster of informed opinions. Most persuasive was the official voice of quasi-government bigshot Freddie Mac’s flat assertion that “…the housing market remains on solid ground.” They reported that housing starts, building permits, existing home sales, and new home sales are “all significantly outperforming” expectations.
If you are among local homeowners thinking of selling your Chicago house in this fall’s market, the upshot was certainly positive. Call me for a detailed discussion of the prospects for your own property and what you can expect should you decide to list!