Real Estate Prices in Chicago – 2012 Trends
Since the Chicago real estate bubble burst five years ago, buyers and sellers alike have been keeping a close eye on real estate prices in Chicago. Sellers have been wondering “how low can they go?” at the same time buyers are wondering whether to buy now or wait for prices to go lower. Buyers should get preapproved for financing so that they can take advantage of low house prices in Chicago right away.
According to information on real estate prices in Chicago released late last month, as reported by Chicago Now, with a “1.9% decline for single family homes and a 2.6% drop for condos the Chicago market hit a record low in the last 11 years. The last time single family home prices were this low was January 2001 and condo prices are the lowest since February 2000. This is officially a quadruple dip.”
While these Chicago house prices are not favorable for sellers, it appears that now – more than ever – it is a buyer’s market. If you are unsure whether you are ready to take the plunge into homeownership, read on.
Top 3 Reasons To Take Advantage of Real Estate Prices in Chicago:
1. Low interest rates: Not only are Chicago real estate prices at record lows, interest rates are near record lows as well. This means that buyers are paying less for property and are getting charged less in interest per month. Which also means -
2. More for your money: As long as your income stability has not been significantly affected by the current economic conditions, most likely you can now afford more house or a more desireable location in Chicago than ever before.
3. Seasonal changes: Traditionally, sellers begin putting their homes on the market in the spring. As a result, sellers whose homes are currently on the market know that they are likely to face additional competition in the coming months; therefore, they may be more flexible on price in late winter and early spring if it means selling their home before prime real estate season.
Still unsure whether now is the right time to buy a home? The trends for the rest of 2012 are likely to be as follows:
- Increased inventory in the spring and summer months: The spring and summer are traditionally the busiest times for real estate. People with kids often prefer to move when school is out and many people find that showing a house during winter months and holidays is too stressful. Likewise, buyers are often more active in the spring and summer – particularly those who do not have to move and can take their time with a home purchasing decision.
- The number of distressed properties should decline and subsequently begin affecting the market less. This is of course, directly related to unemployment. Should unemployment rise, the number of people unable to pay their mortgages will also likely rise, resulting in more distressed properties.
- Home sales should begin to increase slowly but steadily: While there are conflicting views and information on this trend, there are several industry factors that point toward slight improvement of the housing market after a period of near-record lows.
- Remodeling costs will stay low: With so much inventory on the market, few people are building new homes. Quite often, buyers can afford to purchase more home for their money by buying an existing home than building a new one. As a result, contractors are slow and may be willing to work for less just to stay busy.
While there are certainly many factors to consider when purchasing a home, one of the most important things to know before you get too far into the buying process is what you are approved for. Getting preapproved for financing is quick and easy and will ensure that you are in the best negotiating position when you do find that home that you are ready to make an offer on. Do not risk losing a house you love because you did not secure your financing before beginning house hunting.