Buying a house in Hinsdale, Illinois, or anywhere in the country, is a complex process involving careful planning and consideration. With a significant amount at stake, you want to close on the best deal and make sure you meet your goals and budget. To guarantee a worthwhile real estate investment, one of the first things you need to know is the best timing to buy a house.
Like every other city’s housing market, the Hinsdale, Illinois real estate scene is constantly changing. Factors like the economy’s present state, current mortgage rates, government legislation, and neighborhood developments affect home prices and housing inventory. Keeping an eye on these and other market conditions is crucial as they can help you determine when it’s the right time to start the home buying process.
What to know about Hinsdale, IL
Located 20 miles west of Chicago, Hinsdale is an affluent village that ranks among the wealthiest towns throughout the state. Part of the town belongs to DuPage County while the rest belong to Cook County.
Almost 90% of Hinsdale residents own their homes. AreaVibes gave the village a livability score of 83 out of 100 citing its low crime and unemployment rates, as well as highly rated schools. Hinsdale was also named the 6th best city for raising a family in the Midwest by Dwellics.
Living in Hinsdale
Many move to Hinsdale for its great location just around 25 minutes from Chicagoland while providing the perfect escape from the bustle of the big city. The towering trees that line the streets and approximately 130 acres of parkland create a tranquil atmosphere that adds to its small-town charm.
Despite being removed from Chicago’s hustle and bustle, Hinsdale provides convenient access to the Chicago Metropolitan Area and other nearby suburbs. Two major highways and the Metra rail line connect the village to neighboring areas. Hinsdale is also located between O’Hare International Airport and Midway Airport, making air travel easy for locals.
The vibrant downtown of Hinsdale is home to many dining, shopping, and entertainment hotspots where residents run errands, unwind, and mingle. Its many lush parks boast amenities like clubhouses, tennis courts, sports fields, ice skating rinks, and swimming pools—giving locals various things to do throughout the seasons.
Hinsdale’s real estate market
The Hinsdale, Illinois real estate market remains fairly competitive in 2023. As of June this year, the median listing price of properties in the village was at $1.2M, or about $322 per square foot. Homes in the area spent an average of only 34 days on the market.
High-style architecture like Colonial Revival, Queen Anne, and Craftsman Bungalow are popular in the area, but homes in the 19th Century vernacular and 20th Century styles also dot the community. Features like outdoor living areas, exercise rooms, and game or recreation rooms are common among high-end properties—offering an upscale lifestyle that complements the village’s relaxing ambiance.
Conditions to look at before home shopping
Other than the home’s features and location, you also need to consider a number of other factors before making the decision to buy a house in Hinsdale, Illinois. Whether you’re on the hunt for a primary home or an investment property, looking at the following conditions can guide you to the ideal property at the perfect time:
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Seasons
Seasonality is a pivotal factor affecting housing supply and demand. It differs from one area to another, and there are pros and cons to buying a house in every season.
Buying a home during the fall and winter
The real estate market slows down during the fall due to limited property inventory. As the weather gets colder, consumers may also experience delayed showings and inspections. Factors like school schedules and holidays can also impact the real estate market. Families rarely look for new homes during the school year or the holiday season between November and January to keep their obligations at a minimum during a busy time of the year.
However, since there are fewer buyers in the market, sellers are more willing to negotiate and Realtors have more time to provide guidance and assistance to their clients.
Areas with colder climates also witness reduced property sales during the winter since homebuyers are hesitant to move in the frigid weather. Freezing temperatures, strong winds, snow, and ice often become hazards that make relocation more difficult. With fewer people buying properties at the time, buyers have opportunities to strike a great deal with homeowners who can’t wait for the spring and summer to sell their homes.
Buying a home during the spring and summer
Spring and summer are the busiest seasons for the housing market. More sellers list their properties in spring since homes generally look better in warmer weather. The flowers bloom and the trees turn green at this time of the year, adding to the houses’ curb appeal.
However, buyers face more competition during the spring since many families look for new homes throughout the season. Bidding wars are also more prevalent, giving sellers the opportunity to rack up their asking prices due to the high demand.
A lot of buyers are still in the market during the summer—but things cool down toward the end of the season. Before the fall arrives, many sellers lower their asking prices. Buyers also have fewer competition since most have already gone under contract or closed a sale during the spring.
But buying a house while the weather is nice and sunny can come with a few disadvantages. Moving may be more expensive since more people are relocating during the season. Families may also feel rushed to find the right home before the school year starts, which may lead to poor decisions.
The best season to buy a home in Hinsdale, IL
These nationwide seasonal trends are reflected in the local Hinsdale market as well. Some experts say that the months of April, May, and June are the best time to buy a house in Hinsdale, Illinois. More properties are available for purchase during the springtime, giving buyers more options in looking for their ideal home.
If you want to take advantage of lower mortgage rates, December would be a good month to buy a house in Illinois. Most people are busy with the holiday rush at this time, resulting in fewer home sales and larger discounts on mortgages.
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Supply and demand
Property prices rise and fall based on supply and demand. If more people want to buy a house in an area with a limited housing inventory, prices will increase. On the other hand, sellers are more likely to have lower asking prices if the local market is packed with other homes for sale.
Various factors can affect housing supply and demand. The number of active listings and new construction homes, along with recent changes in local and nationwide policies, can cause property inventory to fluctuate. Meanwhile, property demand is subject to conditions like housing affordability, mortgage interest rates, and individual financial status.
Supply and demand in a buyer’s and seller’s market
Housing supply and demand can indicate if the market will be favorable for buyers or sellers. High inventories and less competition characterize a buyer’s market. Meanwhile, a seller’s market emerges when property supply does not meet buyer demand, resulting in steeper home prices.
As the term suggests, a buyer’s market is advantageous for consumers since home prices decline when inventories exceed demand. Sellers are often inclined to reduce their asking prices and be open to negotiation to attract more buyers. In a buyer’s market, consumers can take their time weighing their options since the chances of losing out on a property are slim.
On the other hand, buyers should be decisive in a seller’s market. They need to act fast when they find a property they like, but they should know when to step away from deals that won’t benefit them.
Is Hinsdale, IL in a buyer’s or seller’s market?
As of May 2023, the Hinsdale, Illinois real estate scene is a seller’s market. Options are limited and prices are higher due to low housing inventory. However, buyers shouldn’t let this stop them from finding their dream home in Hinsdale—especially if they’re in a good financial position.
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Economic climate
The real estate market shifts with the economic trends. Home prices often make good indicators of how well the economy is doing, helping consumers decide when to shop for a new property.
Here are some economic factors that affect the housing market:
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Economic growth. A rising economy leads to higher incomes, which enables buyers to spend more on housing. If more people can afford to own houses, property demand and prices increase.
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Unemployment. High unemployment rates cause a decline in housing demand. The fear of unemployment discourages consumers from buying a home and many sellers to take their properties off the market.
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Interest rates. High-interest mortgage rates cause an increase in monthly loan payments. When there’s a hike in these rates, fewer people will be in the market to find a new home. However, high-interest rates can result in lower house prices, which can increase consumer demand.
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Mortgage availability. Demand for properties rises if buyers can easily borrow money from lenders. But if financial institutions are having trouble raising funds for mortgages, they will need to enforce stricter rules on lending—which can stop people from wanting to buy a house.
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Your financial position
Financial preparedness is another crucial factor to consider when buying a house in Hinsdale, Illinois. If you’re in a good financial state, consider it a sign that you are at the ideal moment to purchase a property. Waiting for the perfect economic and seasonal conditions does not guarantee the best results from real estate transactions, so the best time to buy is when you feel you’re financially, emotionally, and physically ready.
There are three most crucial conditions to look at when assessing your financial position:
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Savings. You need enough savings to make down payments and settle mortgage closing costs. It also helps to cover other expenses related to house hunting and relocating to a different area.
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Credit. Lending companies use credit scores to evaluate buyers’ eligibility for a mortgage. A credit score of 740 and higher gives you access to better mortgage rates and terms.
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Debt. Aside from the credit score, lenders check a borrower’s debt-to-income ratio (DTI), which measures the percentage of the borrower’s monthly earnings used to settle housing, car, credit card costs, and other debts. You get a better chance of qualifying for a mortgage with favorable terms and interest rates with a low DTI. A DTI of 35% or lower is considered ideal.
When buying a home, you also need to consider the long term outlook. Keep in mind that homeownership comes with costs other than your monthly mortgage dues, such as maintenance costs, property taxes, and HOA fees. Before going home shopping, assess your financial situation and make sure you can comfortably set aside the right budget for these expenses while also working on building your savings for retirement or emergency needs.
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Length of ownership
While exploring the Hinsdale, Illinois real estate market, you should ask yourself how long you plan to stay in your new home. The length of your homeownership can affect your equity, dictating how much you will earn when you sell the property in the future.
Real estate experts advise buyers to hold onto their newly purchased homes until property values increase and they have had enough time to recoup their buying expenses. That means waiting a few years until they can get good returns from their real estate investments before selling the property and moving out. As a rule of thumb, staying in a home for at least four to five years is ideal.
How a real estate agent can help you buy a home at the best time
The real estate market is always dynamic, and successfully navigating it requires watching market trends closely. This is where the guidance of an experienced real estate agent comes in.
These are some of the ways your Realtor can help:
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They can help you make informed decisions
Real estate professionals in Hinsdale, IL are always on top of everything that happens within the area’s housing market. They know when it’s the best time to buy a house based on the current supply and demand, the locality’s economic status, and the buyer’s needs and financial capacity. While the decision to buy or sell rests solely with their clients, a Realtor can help them make the right decision by providing them with the information they need and guiding them with professional advice. -
They can help you strategize depending on market conditions
An experienced Realtor has likely been through different types of markets and economic conditions, including recessions, low or high interest rates, housing shortages or oversupply, and so on. With firsthand experience, they know how to make the most out of a seller’s market or buyer’s market to the benefit of their clients, and devise strategies based on market conditions to help their clients achieve their real estate goals. -
They can help close the best deal
In any market, Realtors can help you find the home that matches your budget and preferences. With their extensive local knowledge and widespread network, they have access to a wide range of properties for sale, including those that are not publicly listed, as well as opportunities such as a short sale or foreclosure. With their finely honed negotiating skills, they will represent their client’s best interests and help close the best deal for their clients.
Discover stunning properties in Hinsdale, IL today
Planning to buy a home in the beautiful village of Hinsdale? Let me, Alexandra Shaban, help you find the perfect property in this beautiful community.
As a member of Jameson Sotheby’s Elite top 1% of agents, I’m always updated with the latest real estate trends that can affect Hinsdale’s home prices and inventory. My extensive local knowledge and experience allow me to provide expert guidance to my clients and help them make the right decisions, regardless of market conditions. I put my clients’ needs before anything and will go the extra mile to help them achieve their goals.
Start exploring the Hinsdale, Illinois real estate market today with a local expert. Get in touch by calling 312.554.9496 or sending an email here.