NO TIME FOR WAITING

No Time For Waiting
	Inaction can be a risky strategy in today's market
	What poses a greater risk: acting on the known or waiting on the unknown? It's a fundamental question facing many would-be buyers and sellers today. Sitting on the sidelines was a no-brainer in the turmoil following the housing crash. Now, the bigger gamble could be staying there. @properties Market Minute: Rising home prices and signs of a busy fall market. Click on the video to watch our report. After all, looking down the road a year, no one knows for sure where prices and interest rates will be; how stepped up foreclosure activity will affect supply; or what the broader economy will be doing. What is known is the market today, and that market has many positives. In fact, we believe now is an opportune time for both buyers and sellers to be in the market. Here are three reasons why. Low Interest Rates - Buyers and sellers should be paying at least as much attention to interest rates as prices. Today's record low rates are making homes more affordable for buyers and keeping the buyer pool deep for sellers. A significant uptick in rates could have a far more serious effect on the market than a drop in prices. Rising Prices - Home prices in Chicago are finally rising. That's great news. However, there are a number of variables that could pull prices back down in the short term. Would-be sellers waiting on significant price improvement over the next couple of years should think about this: many economists are predicting gradual price appreciation; some are predicting further depreciation; none are predicting a sudden and pronounced increase. Anyone holding out for that scenario is in for a long wait. Low Supply - Supply is at its lowest level in years...so low in fact, that in some places, technically, it's a seller's market. But supply isn't likely to remain this low forever. Foreclosure activity is up significantly since banks lifted their moratorium, and many new foreclosures will soon hit the market. If these listings can be absorbed, and prices continue to rise, more sellers will jump in, keeping a floor under supply. If you're a seller, you want to get your home on the market ahead of this wave. Compared with the last several years, market conditions today are pretty darn good. Hopefully, they'll continue to improve. But as we like to say at @properties, "Hope is not a strategy." What is a strategy is looking at known variables, such as interest rates, pricing and supply, and coming up with a plan to accomplish your objectives. If you've been on the sidelines, it's time to get back in the action. Call or e-mail me to talk about your real estate needs. And remember, I always appreciate your referrals. Speaking of action, want to get the low-down on the best of Chicago's social scene? The hottest nightclubs, restaurant openings, parties, art exhibits and charity events land right in your in-box when you subscribe to CS magazine's weekly e-newsletter. Click here to sign up now. In the news: Why Buffett Is Betting Big on Housing What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity. More Mortgage Rates Rise Ending Record Streak Rates on 30-year fixed mortgages climbed slightly higher this week, breaking a run that saw rates match or set new record lows for 13 out of the past 14 weeks. More Chicago Makes Biggest Gain In Key Home Price Index Home prices in the Chicago area jumped an average of 4.5 percent in May, turning in the best one-month performance of the 20 metropolitan areas included in a widely watched housing index. More