In the beginning of the year, homebuying was still very strong. People were jumping on low interest rates. Properties, especially single homes and townhomes in some neighborhoods and suburbs, were being bid on with zest where a significant number of homes sold quickly and at times above the asking price. As is typical of the third quarter, home buying will cool. Also, interest rates are back on the rise adding slightly to the cooling of the Fall market. But that doesn’t mean it isn’t a great time to list. This article will provide tips on how to prepare for a cooler fall home buying season.

Why the Third Quarter of 2022 May Be Cooler Than the Beginning of the Year?

The rising interest rates are mainly responsible for the increased cool down in the housing market.

In the beginning of the year, interest rates were exceptionally low. More recently, the Federal Reserve raised interest rates to counter rising inflation. However, with rates hovering around 6% (as opposed to the 3% they were at earlier in year) they are still quite low.

And there’s other good news.

Low Inventory: Housing inventory remains low which boosts demand. And while homeowners may have to wait longer to make a sale and may have to reduce prices slightly to account for higher interest rates, they can still make a considerable profit.

Different Markets in Different Locations: There are variations in the market depending on location. For example, many homeowners are moving to the suburbs making these locations hot property spots. Being familiar with the demand in your neighborhood can set you on a strategy for pricing your home accordingly.

Normal Activity for the Third Quarter: The third quarter of the year is typically slower than the beginning of the year as people are reluctant to move during the cold weather. So, to a certain extent, what we’re seeing here is normal activity. But the smart shopper and seller will know that 3rd quarter selling cuts down on the competition making it a great time to move forward.

Will There Be a Housing Bubble?

A housing bubble occurs when home prices rise above what is reasonable or sustainable for most people. It slows down buying and selling which can lead to a crash.

Some people are getting cold feet because they believe we are headed towards a housing bubble. But there are indicators that that a bubble will not occur. These include the following.

  • Low Inventory: A housing bubble typically occurs when inventory is high causing prices to take a dive. Today’s inventory is low making a bubble highly unlikely.
  • Stricter Mortgage Standards: During the last housing bubble, it was much easier to get a mortgage than it is today. Therefore, today’s buyers are more qualified to keep up with payments which limits foreclosures.

How to Prepare for a Cooler Selling Season

A cooler selling season should not keep you from selling. But you must be prepared for what’s ahead to ensure you make a reasonable profit. The key is to work with a smart agent who knows the local market and has disciplined Chicago real estate selling process.

An experienced agent will ensure your home sells by:

  • Working Out Competitive Pricing: An agent will consider home values in your area and help you come up with a price that buyers can’t resist, while ensuring you make a profit.
  • Help You with Updates and Repairs: As with any market, basic home improvements will ensure your home sells quickly at the price point you are hoping for. The right agent will help you determine which home updates are most beneficial for selling the home. They will also stage your home, so it attains ‘dream home’ status.

I Can Help With the Sale of Your Chicago Home

The market may be cooler than it was earlier in the year. But interest rates and inventory are still low. And who knows what the future may bring? If you want to sell, now is the time to do it.

I will help you sell your home by finding the right pricing and advising you on updates and repairs. I will get you the profit margins you are looking for. Contact me to start on your next life adventure today.

View My Featured Listings

Buy Real Estate

Sell Real Estate