If today is any indication it looks like the Chicago housing market is picking up steam amid the January chill.
Unlike any of the past 30 or so Saturdays, today my schedule was jam-packed from start to finish with showings. 1934 Thomas, a new construction two bed/two bath a block south of Division in the East Village witnessed six buying parties (with one returning for a second showing before tomorrow's open house).
And a value-priced Edgewater junior one bed across from the lake near Loyola was witness to five buyers and one offer we are in the midst of negotiating.
Plus we received and agreed upon a cash offer for a new construction home in Bucktown at 1718 N Wood, the second such cash offer on this home in the past two weeks. And clients closed on a new construction penthouse condo in the East Village on Hermitage near Augusta.
If nothing else today lent an emphatic punctuation mark to
an article in The New York Times business section Saturday about the national housing market being on the brink of a thaw.
There are several factors behind this rumbling of activity
- there's a lot of buyers who have been standing on the sidelines since last Summer (when interest rates were nearing 7%)
- today's interest rates are very favorable toward the buyer (approximately 5.82% and possibly going lower)
- there is an unprecedented amount of housing inventory
- list prices are predominantly reasonable
As the Times article astutely pointed out - "At what point will buyers be compelled to act, thinking they are getting a price they can live with and a rate they do not want to miss?"
This isn't to say that people are acting rashly. As recently as two years ago consumers were cashing out equity to buy new homes before selling their old ones. That's typically not the case today. Nobody wants to be caught making payments on the home they live in and the one they don't. This patience to wait to buy until they sell significantly reduces the stress of my selling clients. And it allows us to wait until we receive a reasonable offer.
Because at the end of the day not every offer is reasonable. I had an agent call me today saying her client directed her to make a verbal offer on one of my listings. Since we were negotiating an offer already I agreed to hear the agent's offer. But even after nearly 10 years in the business I was shocked when she uttered a number that was more than 30% less than list price.
One client after receiving a similar lowball offer quipped, "Tell that guy I don't need his help losing money, I do a good enough job on my own."
The schedule for Sunday -
Noon - 2p - 1934 Thomas (one street south of Division at Winchester)
2.30p-4.30p - 1718 N Wood
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