Isn't That Rich Podcast

The real estate market is a bit like a roller coaster—one minute you’re cruising at the top, and the next, you're plummeting into uncertainty. But fear not! We've got the latest insights straight from the frontlines, thanks to Tammy Kissing, a seasoned realtor with All-in-One Real Estate. With over three decades in sales and service, Tammy has seen it all, and she’s here to shed light on the current state of the Southern Illinois housing market. So, whether you're a first-time homebuyer, a seasoned investor, or someone just looking to stay informed, keep reading for a witty yet informative dive into the trends shaping real estate in 2024.

A Market Like No Other

If you’ve been paying attention to real estate lately, you might have noticed a few things—like sky-high home prices that don't seem to be coming down anytime soon. According to Tammy, the national median home value is just shy of $400,000. That might make you do a double-take, especially if you remember when homes were going for much less pre-COVID. The pandemic was a perfect storm for the housing market: low interest rates, a surge in demand, and a buyer pool eager to snag a deal. But those days are behind us, and what we're left with is a market that’s stabilizing, albeit at much higher price points.

Why Aren't Prices Dropping?

You might wonder why home prices are holding steady even as interest rates creep up. Tammy explains that many homeowners are sitting tight, especially those who locked in those enviable 3% (or lower) interest rates. Selling now would mean jumping into a new mortgage at a significantly higher rate—no thanks! This reluctance to sell has led to a shortage of existing homes on the market, keeping prices elevated. So, if you're hoping for a price drop, don’t hold your breath. The values are here to stay, and the market is adjusting to this new normal.

First-Time Homebuyers and Beyond

The demographics of homebuyers are shifting. Tammy notes that first-time buyers aren't the fresh-faced 20-somethings they used to be. Today, they’re more likely to be in their 30s, and they’re not looking for starter homes. These buyers want something they can settle into for the next decade or more, which is pushing demand for larger, more permanent residences. Meanwhile, the downsizing crowd is also active, looking to trade in their larger homes for something more manageable as they approach retirement.

Renting vs. Buying: The Eternal Debate

For those who find themselves priced out of the market, renting might seem like the only option. But don't think that's an easy route either. Rental properties are in high demand, and prices are on the rise. The influx of new jobs in Southern Illinois means more people are moving to the area, and they all need somewhere to live. However, with few new rental properties being built and existing ones filling up fast, the competition for rentals is fierce. And don't forget, when you rent, you're still paying property taxes—just not your own. You're covering them for the property owner, plus a little extra for their trouble.

What Buyers Want

When it comes to home features, today's buyers have some non-negotiables. Think soaker tubs, tiled showers, and his-and-her vanities in the master bath. Flooring preferences have also shifted—no more carpet, please! Buyers are opting for luxury vinyl or laminate, which are both durable and easy to maintain. Pools are another hot item, especially in the sweltering Southern Illinois summers. While expensive to install, a pool can be a great selling point, especially in a region where staying cool is a must.

Navigating the Market

So, what’s Tammy’s advice for anyone looking to buy or sell in this market? First, if you're a buyer, get pre-approved for a mortgage before you start house hunting. Knowing your budget will save you time and heartbreak. And if you’re selling, consult with a realtor before making any renovations. Not all upgrades will add value, and a professional can help you prioritize where to spend your money. Lastly, don't rely on those dreaded Zillow "zestimates"—they're often inaccurate and can lead to unrealistic expectations. Instead, get a market analysis from a realtor who knows the local area.

Looking Ahead: 2024 Predictions

While Tammy isn't a fortune teller, she does have some thoughts on what to expect in 2024. Interest rates might dip to a more comfortable 6-7% range by the spring, which should help stabilize the market. But don't expect housing prices to drop—those are likely here to stay. Instead, the market may slow down a bit, with homes taking longer to sell than during the frenetic days of 2020 and 2021. And remember, just because a home has been on the market for a while doesn’t mean something's wrong with it. Sometimes, it's just a matter of finding the right buyer.

Final Thoughts

The Southern Illinois real estate market is in a period of adjustment, but that doesn't mean there aren't opportunities out there. Whether you're buying, selling, or renting, working with a knowledgeable realtor like Tammy can help you navigate the complexities and make informed decisions. So, take a deep breath, get pre-approved, and dive into the market with confidence—2024 might just be your year to find that perfect home.