Demand is soaring. Prices are rising. And existing home sales are now at the highest level since 2006. But will it last? Not at the current rate, according to many experts. Why? Because the pandemic provided a unique “perfect storm” for housing sales:
- Mortgage rates fell to a historic low.
- Demand increased.
- The existing housing supply tightened.
- New home construction fell sharply.
But things are about to change.
Your home’s value has grown quite a bit. But…
The median home sales price in the nine-county Chicago area rose 12.5% over the last year, according to the Illinois Association of Realtors. That was nothing compared to western Cook County, where the median price rose to $275,000 in February – an increase of 26% year-over-year. But these gains simply aren’t sustainable.
Caution: Slower growth ahead.
While prices will continue rising in the near future, you won’t see the tremendous gains of the past 12-to-18 months, according to the Home Buying Institute. Here’s why:
- Mortgage rates are rising: a 30-year fixed-rate mortgage in April 2021 is 3.1% – up from 2.75% in December 2020, according to Bankrate. When the recession ends, rates could rise over 4%.
- More homes will come on the market, as owners who sheltered in place finally list their properties.
- Higher borrowing costs plus soaring home values will make buying a home unaffordable for an ever-growing number of residents. That translates to less demand, which in turn slows home price growth.
Selling now locks in substantial gains. But where will you live next?
If you’re thinking about selling your home while the market is still hot, 2021 is a good time. But, remember, the same limited supply of houses that will get you a great price now, mean you’ll pay top dollar if you intend to downsize and buy a new home. Add in closing costs, and it could take five years or more to break even on your investment.
It’s the best time to sell. And a great time to move to Smith Village. With the median sale price for a
single-family home in Chicagoland at a historic high, the unique advantages of Smith Village are now within reach of many more seniors.
- Moving to Smith Village eliminates the substantial expense of owning and maintaining a home.
- Because costs are more predictable, you’ll gain more financial stability.
- You’ll have guaranteed lifetime access to on-site care services. That’s a compelling consideration, given that only 7% of people in the U.S. have long-term care insurance.
And the advantages of Smith Village aren’t only financial. You’ll benefit from a wellness-based lifestyle and have access to an exceptional level of amenities, services and activities you’ll never find at a month-to-month rental retirement community.
Could a great life at Smith Village be in your future? Let’s find out. Give us a call at 773-474-7300.