call us312-335-9470

200 West Adams, Suite 2475, Chicago, IL 60606

The Hot Housing Market: Will it Ever Cool Down?

Posted on in Business License Defense IDFPR

Illinois Business License Defense LawyerA widely-documented and much-discussed phenomena is occurring in the housing market right now – homes are being listed well above the estimated value, and furthermore, people are buying these houses at amounts even higher than the already inflated asking price. Home inspections are being waived and offers are being rejected if buyers try to suggest them. Sellers are heavily counter-offering. Buyers are putting down fully cash offers. Deals are closing within 3 weeks. The list goes on. If there were two words to describe the housing market for most of 2020 and 2021, the words would be “frantic” and “unprecedented.” Real estate brokers have adapted to these conditions now, but what about the theoretical inevitable stagnation of these conditions?

Many economics and real estate industry experts have been hypothesizing for months if, and when, these aforementioned conditions will change and the market will revert to a calmer, more seller-buyer balanced harmony. Generally speaking, there are multiple reasons why these conditions cannot be sustained or will not sustain themselves. Although the demand is extremely high, the reasons for it are subject to change. Conditions of the pandemic have created these circumstances by which people either have the freedom to move elsewhere due to the prevalence of remote work, or because staying at home for so long has caused individuals to reevaluate their home space and to pursue better ventures. Similarly, sellers are listing their houses solely, in many cases, just to get a chance to sell their houses at a higher price than valued due to the high demand from buyers. If a buyer purchases a home above the asking or listing price, they could have trouble reselling the home when the market calms down or lose their equity when the amount they purchased it for is impossible to recapture upon selling it. While this does not necessarily affect the market overall, it certainly affects the experience of the seller and buyer.

If the conditions of the pandemic effectively created the market as it is, then the eventual improvement of the current health crisis may also affect the duration of this frantic, unprecedented market. As infections reduce and businesses reopen, and society goes back to “normal,” priorities and needs will inevitably change. The waves generated by the fervency of buying and selling will calm down, and people will either stay rooted and enjoy their new neighborhoods and cities, or alternatively, feel trapped by their decision and unable to resell at the amount in which they purchased the house. Just as they had to learn to navigate the current market, licensed professionals in the real estate industry will also have to (re)learn how to navigate calmer and smoother waters. Market literacy is a must.

Williams & Nickl has represented thousands of licensed professionals and their licensed business entities who face issues with IDFPR. If you find yourself in such a situation, Williams & Nickl can provide the help you need.

Back to Top