Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

2012: CHICAGO AREA HOME SALES SURGE; BEST JANUARY IN 5 YEARS

As a real estate agent, the new report published by Crain’s today was not surprising.  The start of the year has been busier than ever, with buyers on the hunt for new housing.  According to the study, Chicago home sales in January rose 15.7% over last year, and saw its best figures in five years. 

The affordable home pricing, low-interest rates, and mild weather had a lot to do with the increase.  In addition, many renter’s have found themselves paying more to their landlord, than a mortgage payment.  This steep climb in rental rates has renter’s considering home ownership again.  This may not be what the developer’s of several new rental properties want to hear, but they can easily convert to condo’s if needed, to keep up with the demand. 

Another part of the surge is the investor rebound.  When the housing market began to decline, they dried up.  But in recent month’s many investor’s are back in the game, trying to take advantage of incredible deals with better returns than the stock market.  Higher rents allow them to take a foreclosed property, to pure profit in a very short time, which is enticing.

The one fact which is missed in all this, is the potential for numbers to further climb if banks would close short sales quickly.  Many buyers have purchased them, but become impatient with the process and cancel before they are approved.  Can you imagine if banks could cut the process down to a month?  These figures would hit the roof, and get the housing market back on track. 

Foreclosures continue to climb and buyers are purchasing them quickly.  Multiple offers are also becoming a new trend, and cash is definitely king.  It’s amazing how many buyers have money set aside and are willing to readily invest.

When the government has discussions on how best to move forward with the housing market, let’s hope they consider short sales.  The slow timeline is hindering the transitions, so negotiators need to step up their game and get them done.  President Obama needs to help with this piece of the puzzle, and home sales will continue to skyrocket.  He also needs to address the credit score rating system, which needs a revamp.  If a sliding scale is not implemented, this will hinder the millions of potential buyers with credit issues.  Almost all Americans have seen a drop in their scores, which is obvious with the amount of short sales and foreclosures.

In every recession, comes opportunity.  Hopefully this one will also create a lot of millionaires like in past market declines.  Have you considered buying a home?  If not, it may be time to jump on board before it’s too late. 

INTERESTED IN BUYING OR SELLING A CHICAGO PROPERTY?  BRV WOULD LOVE TO ASSIST!  CALL 312.475.4548.

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February 22, 2012 - Posted by | CHICAGO REAL ESTATE | , , , , , ,

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