Things could deffinetly change but mostly base that on the current unemployment and the whole credit fiasco.
All indications are that Chicago has some room to go south. The inventories remain very high and there are numerous projects still in the works and many that slowed down because of the market. Maybe within the next six months, during the worst weather, worst time for general sales anyway may be a great time to go in and really negotiate a great opportunity. You have to totally take any emotions out of it and just be very committed to specific life style choices. We are home based in Chicago although are primary markets are in the southeast where there are some amazing opportunities. Let me know if we can help.
The Schaffer Realty Group
Your mortgage payment will most likely be the same right around these next several months, because of that dynamics of market values and loan rates. After that, it is anyone's guess what will happen. When the FED stimulus package for real estate gets all used, interest rates will begin to rise... which is already happening...... and there is only about 2 months left of the money, according to past usage statistics.
If you need help in looking for homes that are in all types of price ranges, you can go here for help:
Just click on the link OR copy and paste into your browsers address box..... that link will give you the CURRENT homes on the market from prices that are almost NOTHING all the way to $200,000... foreclosures are included with this link also.
If you need any more help, just ask....
it will be the real price you pay but it will be fake in that when the market craters the real value will take over
Same when in a boom market and they (like Trump towers) charge 2k /sq ft but then the market goes down and bam! the blackmarket takes over and if you know the right person/agent maybe you pay 500/sq ft
while its always about what one is willing to pay is the real market, when a government subsidizes enters the game, distortion is then introduced
Real estate is local, right down to the unit level. Some units in new buildings, in foreclosure, in other distressed situations, may already have bottomed out.
Don't be guided by trends / statistics that are fundamentally unknowable. Find a place you love at a price you're comfortable with and that you consider a bargain. If you can't find that, rent.
I am sorry to tell you that neither I or any expert can truly predict what will happen in the market over the next few years. I will tell you, believe or not, that this a truer market than what it was 5 years ago. I will tell you that this is a great time to buy, if you plan to keep your property for a while. Take everyone's advice on here and then kind of average it all out. I will say this, we do work in this market and we try, always, to give the best advice! Good luck to you and happy house hunting!
I'm not an agent. I'm a home shopper who market/economic research for a living. Reports I've read (see economist.com, forbes.com, etc....usu somewhat unbiased ) indicate that home sales/prices could continue to decline through 2011. If you are planning to live in your home for 7-10 years, then I believe it's a good time to buy. However, if you buy now, be prepared to watch your homes value drop by up to ~20% in the next 2 years and then very slowly increase in value over a period of approximately 7-10 years. You don't have to take my word for it. Just look up the term "shadow inventory" and really think about what this will mean with respect to supply/demand, price and risk.
I'm determined to buy now....Good luck to you!
Housing values will stop declining as soon as the stimulus budget is expended, estimated to require at least three to four years. Expect higher interest rates and stricter buyer qualification guidelines to obscure the rose-painted skyline for at least until rates decline and buyer qualifications are returned to realistic levels.
Expect continued rain on your parade as long as the stock market is declining, forecasted to peak just in time for the bi-annual congressional elections.
I agree with many of the comments posted regarding specific area market trends, and there are some other specifics you should take into account. New building has declined finally, which should help to deplete current inventory that has been lingering around, along with the recent declines in pricing and interest rates, volume has increased supporting the pricing of some products in certain areas. Whether we see the decline continue over the next 6 to 12 months, I think most professionals agree, we will not see the sort of illogical appreciation rates we saw over the past 7 years again. If you are purchasing a home to live in, it should still be a purchase based on quality of life over the long term, and future financial stability. Fortunately we live in a market with a few million people, and a large portion of which will always be home buyers and sellers, providing stability to the real estate market that you don't see in many other areas of the country. Spend your time finding the right place that you will be happy in and bargain hunting now, and the appreciation will eventually kick in. There is no way to pin point an exact moment for things to turn around. Chances are the days of becoming an over night millionaire, buying and selling a condo are well behind us.
Best of luck with your decision,
I think that you first of all need to focus on WHERE in downtown Chicago you are looking to buy a condo. I do alot of the market statistics for our company, and recently pulled some stats on the N. Side condo market for Crains. (link provided below) Some neighborhoods continue to move upwards with regards to sales price. This is often effected by school districts, neighborhood features, public transportation, and simply if it's THE place to live. Another thing that you might consider (and I have no benefit if you buy now or wait since i'm not an agent) is that if :
* prices continue to slide in certain areas and your dream condo declines 5%.
* mortgage rates increase half a point
You will pay the same amount for the condo a year from now and not put ANY money towards the equity of your home purchase and spend it on rent instead...
Anyway, I would consult an agent and have them pull the trends (tell them you'd like to see the Agent Metrics Report) for an area with a condo that matches your criteria.
All the best,