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Image by Glenn Carstens-Peters
  • Writer's pictureMatt Elakatt

Is now a good time to buy or sell?

All of us have been hearing the word inflation and recession recently. Additionally, many of us are noticing increases in the price of gas, groceries, and dining out experiences. All of which leaves us wondering if it is the right time to buy or sell a home.

Each person’s situation is different and it comes down to your life goals and financial readiness.

In most areas of Chicago and its suburbs, the demand for houses is still high, though there are a few pockets where this isn’t the case, but generally selling now is favorable. Your home will likely be on the market for what is considered a normal amount of time, which historically in Illinois is 80 days.

The biggest factor to look at when buying is finances. Here are a few things to consider to determine financial readiness:

  • How long can you see yourself living in this home? You want to stay in the home for enough time for the property value to increase and for your equity to exceed the cost of buying and selling. This typically takes a few years.

  • Do you have enough savings? In order to buy a home, you’ll need enough money for a down payment, mortgage closing costs, moving, and other expenses. The down payment requirement varies by the type of mortgage obtained.

  • How is your credit score? Borrowers with scores of 740 and above are offered the best mortgage rates, although those with lower scores can still qualify. If your credit isn’t as high as you want it to be or need it to be, it may be best to work on cleaning up your credit and then buying a house down the line, so that you secure better financing options. You can check your credit report for free using this link: Credit Report

  • What is your debt-to-income (DTI) ratio? DTI is the percentage of your gross monthly income that goes toward monthly debt payments, like housing, credit cards, car loans, student loans, etc. You can qualify for a mortgage with the lowest rate if you have a low DTI.

📱Call/text us at 847-530-0534 or 💻 email us if we can help clarify if now is a good time to sell or buy for your situation or if you’d like to be connected to one of our preferred lenders.

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