I just read an article by Inman news explaining how the mortgage interest rates fell this week to lows we haven't seen since 2004. That's great news for buyers that are indecisive about buying now or waiting until later. With the recent special Fed rate cut buyers may think it's best to hold out for even lower rates. That could be a risky gamble. I'll explain why.
Although I am starting to get more buyers than I can handle, they are passing by decent properties and insisting on viewing everything on the market in their price range. I can't blame them, although I saw a few homes I'd purchase in a minute if I were looking. But today's buyers think there's something better out there or they're waiting for better rates.
If interest rates keep dropping the market might get flooded with buyers and there might once again be multiple offers on homes. Home prices might go up with the increase in demand and inventory might start to decrease, leaving less to choose from. It will once again be supply and demand. Right now the supply exceeds the demand. But if rates continue to fall, the demand will increase, causing prices to increase.
Personally, I haven't seen a downfall in Orland Park real estate the market. I do see many more listings available to buyers. That's not a bad thing. In my opinion, the market was spiraling out of control and prices were increasing at a fast pace. That just wasn't going to last.
But sellers are still pricing their properties based on the past seller's market and their homes are just sitting. Buyers have a smorgasbord of listings to choose from. They only purchase the cream of the crop - those properties that offer the most for the money. The rest of the inventory just keeps sinking until price reductions make those homes rise to the top in the price range they should have been in to begin with.