Eric Sanders Chicago: Should You Buy or Sell in 2025 or Wait for Interest Rates to Drop?

Many potential homebuyers and sellers face a critical decision this coming 2025: Is it better to act now or wait for interest rates to drop? Eric Sanders, a prominent Chicago real estate attorney, shares his insights on the market dynamics, the impact of interest rates, and the factors to consider when making this decision.

The Current State of the Market

The real estate market heading into 2025 remains influenced by higher-than-average interest rates, limited inventory, and shifting buyer preferences. While rates have stabilized from previous spikes, they remain elevated compared to the historic lows of the last decade.

“Interest rates are a crucial factor in real estate decisions, but they’re only one piece of the puzzle,” Sanders explains. “Market conditions, personal financial stability, and long-term goals also play a significant role.”

Should You Buy in 2025?

For potential buyers, the question of whether to purchase now or wait hinges on several factors. Here’s what Sanders recommends considering:

1. Inventory Levels

The availability of homes remains tight in many markets, including Chicago. This has led to continued competition among buyers, especially for properties in desirable neighborhoods.

“If you find a property that meets your needs and budget, waiting for lower rates could mean missing out,” Sanders advises. “It’s important to weigh the cost of waiting against the potential savings from lower rates.”

2. Rate Buydown Opportunities

Buyers have options to mitigate the impact of higher interest rates, such as negotiating for a rate buydown or exploring adjustable-rate mortgages (ARMs).

“Creative financing solutions can make homeownership more affordable even in a high-rate environment,” Sanders notes. “Consulting with a trusted lender and attorney can help you navigate these options.”

3. Personal Financial Stability

Sanders emphasizes the importance of assessing your financial readiness before making a purchase. A stable income, healthy credit score, and manageable debt levels are critical factors.

“If your finances are in good shape, buying in 2025 could be a smart move,” Sanders says. “Real estate remains a strong long-term investment.”

Should You Sell in 2025?

Sellers also face a tough decision in the current market. While higher interest rates may reduce the number of qualified buyers, strong demand and limited inventory can work in their favor.

1. Home Values Remain Strong

In many areas, home values have remained resilient despite higher rates. This is particularly true in markets like Chicago, where demand continues to outpace supply.

“Sellers who price their homes competitively and present them well are still seeing strong offers,” Sanders explains.

2. Timing the Market

Waiting for rates to drop could increase buyer activity, but it also introduces uncertainty. There’s no guarantee that rates will decrease significantly or that economic conditions will remain favorable.

“Timing the market is always a gamble,” Sanders cautions. “If you’re ready to sell and have a clear plan, 2025 could be a good time to act.”

3. Your Next Move

Sellers need to consider their own housing plans when deciding to list. If you’re planning to buy another property, the same factors affecting buyers—such as interest rates and inventory—will apply to you.

“Evaluate your overall goals and how selling fits into your long-term strategy,” Sanders advises.

The Case for Waiting

For both buyers and sellers, there may be valid reasons to wait. For buyers, waiting could mean lower monthly payments if rates drop significantly. For sellers, a more favorable interest rate environment could increase the pool of qualified buyers.

However, Sanders warns against waiting solely based on speculation.

“Market conditions are unpredictable, and waiting could lead to missed opportunities,” he says. “Make decisions based on your current needs and financial situation, not just what you hope will happen.”

The Role of Professional Guidance

Navigating the real estate market requires careful planning and expert advice. Sanders encourages both buyers and sellers to work with experienced professionals, including realtors and attorneys, to ensure informed decisions.

“A trusted team can help you understand your options, mitigate risks, and achieve your goals,” Sanders explains.

Whether you’re considering buying or selling in 2025, the decision should be guided by a combination of market conditions, personal circumstances, and expert advice. While interest rates are an important factor, they shouldn’t be the sole determinant of your plans.

“Real estate decisions are deeply personal,” Sanders concludes. “By focusing on your needs and working with professionals, you can navigate the challenges and opportunities of 2025’s market with confidence.”

Whether you choose to act now or wait, staying informed and proactive will ensure you’re prepared for whatever the market holds.

Eric Sanders Chicago: Should You Buy or Sell in 2025 or Wait for Interest Rates to Drop?
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