Good Morning, from a very damp Northwest Side of Chicago!
Just wanted to review a few statistics, thoughts, and predictions gleaned from Anne Brennan's article in The Chicago Tribune last Sunday, January 6th. Also, please check out our posting in yesterday's BlogChicagoHomes.com.
1. Median Chicago-area home prices increased 0.8% between November, 2006 and November, 2007. At the same time, Illinois median prices statewide dipped 3.0 percent. The median price of a home in the Chicago area last November was $247,000.
2. Many buyers will delay their purchases and sales past 2008, according to Bill Hummer, or Wayne Hummer Investments in Chicago. He, personally, doesn't see a considerable increase in the real estate market here until 2010. According to Diane Swonk, of Mesirow Financial, Chicago will be spared the worst of the housing market decline which began in earnest in last year.
3. As many of us "Baby Boomers" - those born between 1946 and 1964 - prepare for retirement and second homes, younger Gen X and Gen Y Buyers will predominate the first-home market. These buyers have good incomes, many with unblemished credit. They will have little difficulty finding mortgage options in 2008 - and many good buys will be available to them, especially in the over-supplied condo market here.
4. It is a "Landlord's Market" here in Chicago, with many rents increasing 10-12% over year-ago levels. Landlord incentives - free rent, reduced security deposits, and the like - are rarely available as they were a year or so ago.
5. "Flipping" properties has declined considerably. Most investment buyers prefer to "buy and hold," as short-term price appreciation cannot be assured.
The first quarter of the New Year will provide a bit of a roadmap for how things will fare here in Chicago in the near future.
DEAN & DEAN'S TEAM CHICAGO