What Buyers Want: Price Stability and Lower Rates

A recent Bank of America survey made it clear: buyers are waiting for two things before jumping into the housing market—stable home prices and lower mortgage rates. Fortunately, both are beginning to shift in their favor.

Home Prices: From Rapid Growth to StabilityOver the past few years, U.S. home prices skyrocketed, with some areas seeing nearly 20% gains in a single year (2020–2021). Many buyers were priced out. Today, the pace has cooled significantly, with growth slowing to single digits. Some markets are even seeing slight declines, making it easier for buyers to plan and budget.

Mortgage Rates: Coming Down From the Peak

Rates have also eased from last year’s highs. Currently, they hover in the low-to-mid 6% range—much better than just a few months ago. Experts believe rates will likely stay around this level, with the possibility of further decreases depending on economic conditions. Even a small drop can save buyers hundreds of dollars per month, creating a real window of opportunity.

What This Means for Chicago and the SuburbsThe Chicago metro area reflects these national patterns. More listings are coming on the market, slowing price growth, though hot neighborhoods remain competitive. With rates settling, buyers who were hesitant are starting to return, boosting activity.

For sellers, this is also good news—more active buyers mean higher chances of closing a deal. For buyers, it means a better environment to re-enter the market.

Bottom LineThe two things buyers wanted most—stable prices and lower rates—are starting to appear. While uncertainties remain, the conditions today are much more favorable than last year. If you’re considering buying or selling, now is the time to plan strategically with a local expert who knows your neighborhood market.

📞 Sangchul Han 773-717-2227 | ChicagoBDB@gmail.com