For first time homeowners who have not been hit too hard by the current financial crisis, now might be one of the best times to purchase a piece of Chicago real estate. This article in the New York Times details the many advantages of first time buyers, including the fact that they do not have to sell their current home before investing in a new one.
As a Chicago real estate agent, I have assisted many buyers purchasing their first homes, so I am more than familiar with the basics as well as the key details that new homeowners may have missed, especially the finer details of purchasing new construction Chicago condos or homes (check out my tips for purchasing new construction here). In fact, as the aforementioned article says:
“(One) strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.”
Clearly, if you are the position to purchase a home, now would be the ideal time, especially if you are a first time buyer. Furthermore, it is essential to remember that it is particularly important for new home owners to work with an experienced real estate agent, since the real estate buying process can be quite complicated. Last but not least, realize that you may not be able to build equity as quickly as you’d like, so it is important to consider your new Chicago real estate as a long term investment.