The number of homes for sale is growing which means it is no longer a seller’s market. Homes are staying on the market much longer than they did only six months ago. Home values are starting to cool as limited inventory and widespread investor demand are no longer driving price gains.
Markets, including Chicago, where the housing recovery was slow and the crash less dramatic, have seen better price gains in the past year than in 2012. On average property prices increase 3.5% per year, and since around the summer of 2013, they’ve gone up 6-8% each year.
The rate of home price inflation declined the most in markets that had been measured the hottest during the housing recovery. Experts predict that home values will start to increase to about half the present rate- approximately 3%.
Market dynamics are changing as home prices slow down. Home affordability is going up, making it easier for potential home buyers. As we enter into a buyers’ market again, there is more room for buyers to be aggressive in making offers and asking for concessions. Contact your 1st Advantage Mortgage Loan Officer today to get pre-approved for a mortgage.