The Real Estate Market in Midwest USA: Status Report

 Midwest is the best! Not just because they are the friendliest in the nation, but with the lowest cost of living in the nation and the housing market is off the hook right now! In Sioux Falls, SD houses can sell in minutes after being listed. If you are listing your home for sale you better have a plan on where you are moving your family to right away or you might end up without a home!

Buying and Selling homes has long been considered one of the most stressful things you can do you. It is ranked right up there with the death of a loved one! But with this market it is hard to see why. Homeowners used to painstakingly work on their homes to make them market ready, but now homebuyers look for basics and want to make their new home their own. They aren’t always looking for the perfect home, but the bones to make their new home perfect on their own. If you were going to list your home you would worry about buying a new home without having sold your existing home and how long you could survive with two mortgages. This can be incredibly daunting. Here now in the Midwest it is just the opposite, buy your new home and wait to list your home because as soon as you list your home it might sell in the first day or within minutes.

Price It Right

Make sure you work with a realtor to help price your home accurately. The only way to not sell your home quickly is to list too high. Listing too high will ensure your home will sit on the market longer than it should this is true no matter where you live. While home prices are not quite where they were in 2008 before the market crashed, they are trending to get there within the next couple of years. An Illinois home value in 2008 before the market crashed of $189,000 dropped to its lowest value in 2012 of $132,000 is now listed for $173,000 and continuing to trend upward. With this upward trend it is still a Great time to invest in Midwest real estate or to buy a new home for your family. According to Zillow the market for Illinois is continues to increase and buying now while it is still trending will help build equity right from the start. Now when we are talking about Midwest homes in Illinois, we are not talking about downtown Chicago. The market in big cities is completely different than that of suburban areas in the Midwest.

Another word of advice would be in regards to buying a home warranty. Home warranties are service agreement that provide some sort of insurance for your home systems and appliances for a fixed cost, and are extremely popular in South Dakota.You should consider buying one.

The Bounce Back

While the housing market crash was felt world wide not all US cities fell the same way. While Illinois experience a real estate drop from 2008 to 2012 of nearly 30% of a home’s value, the Missouri housing market has been on a rollercoaster. Homes values would spike at the beginning of the summer months and drop in the winter and this has been a consistent trend since 2010. In Pennsylvania the housing market has already surpassed it’s 2008 market figures and is still trending up! A home in 2008 before the crash might sell for $155,000 and at it’s lowest market point would have sold for $138,000 in 2012 is now selling for $166,000 in 2018. While every market has experienced some downward trends over the last decade they are all on the mend and in prime market condition for buying, selling or investing!

Location, Location, Location

When comparing different real estate markets across the nation you can compare apples to apples, by comparing two Midwestern cities or compare it to an orange like downtown Chicago or Miami. The housing markets will vary depending on your location and the price will determine what you can buy in each location. In Pennsylvania a four-bedroom home might cost $293,000 in 2018 and a four-bedroom home in South Dakota might be around $212,000. While South Dakota is mostly rural, Pennsylvania boasts more suburban areas. For the same four-bedroom home, but in San Francisco would be $1.79 million. Clearly homebuyers can get a lot more bang for their buck in the Midwest versus coast cities. If you were spending over $1.5 million in the Midwest you could get a mansion with tons of acreage. You would be living the life of luxury in the Midwest versus a medium size family home in a coastal area.

What Market Experts Say

With this housing craze on the loose it is important to check in and find what the experts are saying will happen in the market. According to Forbes.com while the market might slow it will not slow for long. As long as there is minimal homes in inventory the prices of homes will continue to increase. In various markets around the country renting may be a better option to keep cost of living affordable. The Federal Reserve is expected to keep interest rates below 5%, which keeps mortgages more affordable for home financing. As more Millennials reach an age where they are ready to settle down, the demand for housing will continue to increase.

Sums It Up

The experts say the market is going to cool but not for long, so if you are planning on buying a new home or begin investing in the real estate market jump on it now. The longer you wait the more you will pay for property. Buy now while the market is still on the upward trend. Buying in the Midwest will give you a lot more buying power than if you try and buy in a big city or in coastal areas. If you are looking to sell be sure to have your next home already purchased and ready to close before listing your current home. Price your home right and it will sell fast!

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.