If you’re in the market to buy or sell a home in Chicago, chances are you’ve been following Chicago real estate news for the past few years–the ups, the downs, and all the predictions of what’s next.
Because of our early spring and the unusually warm weather, I am seeing a lot of potential buyers looking at open houses already, which is quite a bit earlier than normal. I’m also finding that some of my past clients are calling to find out what’s happening in the marketplace, and I’ve talked to a number of clients looking to purchase luxury property anywhere from $1 million to $5 million.
With activity like this popping up, it seems like a good time to consider the economic outlook for 2012, particularly in Chicago real estate. It appears that luxury buyers (those looking to purchase properties from $500,000 and up) have a bit of pent-up demand, and many may be ready to pull the trigger on a new home before the opportunity passes by.
A DePaul economics professor recently wrote in Chicago Realtor Magazine that there are several signs of recovery for real estate and the housing market this year. He also refers to that same pent-up demand for real estate. With an increasing working population and more young adults living at home, there is a great want and need for housing among potential home buyers.
But what buyers will need to bring to the table isn’t any different from what I’ve said before: sufficient funds to make a down payment and an income that will allow them to make monthly mortgage payments. If the labor market can continue to improve and provide jobs to these potential buyers, the housing market will improve. That will lead to improving wealth and confidence, will continue to stimulate economic growth. With things looking up the way they are, the Chicago real estate market certainly is well-poised to improve in 2012.
With increasing demand for Chicago real estate and a recovering market, buyers must keep in mind that the ideal window to buy could soon be gone. As demand goes up, so will home prices and mortgage rates, and buyers likely won’t be able to negotiate the kind of deals they can now.
If you’re considering buying a home in Chicago, give me a call so we can discuss the market’s outlook for the coming months and take a look at what’s available now. Contact me at 312-264-5853 or email me at [email protected]