A magnifying glasses looking at a newspaper with news about the housing market.

Buying And Selling In A Time Of Global Uncertainty: What You Need To Know

There can be no denying that we are living in a time of tremendous global uncertainty. And in our ever-changing world, this uncertainty can have a ripple effect that impacts the entire economy — including the residential housing market. 

In a complex, fast-moving, and deeply interconnected world, uncertainty anywhere can impact buyers and sellers right here in Chicagoland, in ways both small and large. In recent weeks, you’ve probably read any number of headlines detailing how supply chain issues, rising inflation, the conflict in Europe, and recent COVID variants have all influenced market conditions in one way or another — from contributing to fluctuations in mortgage rates, to tightening the amount of new housing inventory being built, to driving up home prices, to influencing buyer and seller behavior in sometimes unpredictable ways.

But while times of global uncertainty can affect the housing market for better and for worse, these difficult moments are also a vital reminder of the vital importance of home and all its four walls hold. Buying a home is about making an investment — an investment in your community, an investment in yourself, and an investment in our collective future. In uncertain times, buying and selling a home can provide a sense of purpose and stability, while offering some significant financial benefits that can keep you and your family grounded through whatever the future may hold. 

Curious about whether now is the time to move forward with your buying or selling goals? Here are a few important things to keep in mind: 

Americans Continue to Rank Real Estate as the Best Long-Term Investment 

In the face of growing unpredictability, Americans continue to see owning a home as a positive, reliable, and worthwhile investment. In fact, in a recent annual poll conducted by Gallup, the majority of respondents ranked real estate as the “best long-term investment” for a staggering eighth year in a row — favoring it over stocks, gold, and savings accounts. 

Homeownership is a stable, predictable investment with countless proven financial benefits, particularly during times of uncertainty. For instance, owning a home can offer more protection against economic turbulence than renting; because you are locked into a monthly payment, your housing costs will remain steady and predictable, even as inflation and other uncertain economic variables may cause the cost of renting to climb year over year. 

Homeowners Are Building Equity at a Historic Pace

Considering whether this is the right moment to sell your home? Recent trends indicate a market that is highly favorable to sellers, indicating that now is a great time to make your next move. In addition to homes spending less time on the market overall, median housing prices have been climbing across the country at record-breaking rates. 

And, believe it or not, this is good news for buyers, as well. People who purchase homes in the near future are likely to see significant gains in equity in a relatively short span of time — which can, in turn, significantly increase your total net worth. As home prices climb, homeowners’ equity wealth rises too. In fact, recent data suggests that the average homeowner’s equity has grown by more than $55,000 over the course of the last year. According to data cited by the National Association of REALTORS® (NAR), homebuyers who purchased a home 10 years ago have gained an average of $225,000 in equity on homes sold “for the average price.”

Homeownership Offers Benefits That Go Beyond Your Finances

In addition to homeownership’s potential for creating stability while growing your personal wealth, it’s important to remember that real estate can offer benefits that go beyond your bank account, including powerful intangible benefits like pride in homeownership and an increased feeling of security and connectedness. According to the NAR, studies have linked homeownership to decreased stress levels and to significant family and community benefits — including an increased sense of “community pride” that can lead to greater community investment, fostering impactful personal relationships and a healthy sense of belonging.

When Home Means More, You Need A Team With More To Offer

The Chicagoland market is moving — and if you’re ready, you can too.

During these unpredictable times, it helps to work with a real estate company that can take the stress out of finding your new home. As the largest independent and locally owned real estate brokerage in Chicagoland, Baird & Warner is home to thousands of the most highly skilled real estate professionals in the area. Our brokers are hyperlocal experts who understand every facet of what goes into buying or selling a home, and who are ready to help you navigate the process with ease at every step of the way. With everything going on, we know how important it is to be able to move forward with your important real estate decisions — and we’re here to make that easier. At Baird & Warner, more than 165 years of history have taught us how to help our community thrive in any market. With mortgage and title services in-house and innovative partners who are as committed to giving clients the best possible service as we are… It’s just easier here.

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