Despite recent depreciation of Chicago home values and recession-induced foreclosures, new data shows that the housing market is looking up. While many individuals continue to struggle with mortgage rates and payments, efforts from the loan industry combined with recent market figures indicate a not-so distant light at the end of the tunnel.
The market, which bottomed out this past March, has taken an upward turn with the emergence of more confident and optimistic buyers. Because many individuals have been able to receive helpful loans, their perspective on home-buying has also changed for the better. This increased sense of positivity, though intangible, is a definite way to increase morale, and thus interest in Chicago real estate.
Being in a buyers’ market can entail a variety of options and setbacks. Primarily, though, it indicates the need to be absolutely sure of your ability to keep-up with payments and other related expenses. Because Chicago homes are already much more affordable than those in major coastal cities, affordability in top neighborhoods such as Lincoln Park and the Gold Coast is less severe than it would be in coincident areas in New York or California.
According to MSNBC, an 18.1 percent decline in the Case-Schiller index of 20 major cities (calculated in April) marked the third consecutive month for which the index wasn’t at a record low. Although this trend may seem initially like the lesser of two evils, it also has great potential to move us out of the real-estate slump. Loan-success projections for the remainder of 2009 may be questionable at this point, however the market is still hoping that exceptionally low home prices will help to curb foreclosure rates.
In addition, buying a foreclosed home is a definite option for prospective buyers. These homes are especially appealing to new families looking to get more square-footage for their money, first-time buyers, and existing homeowners looking to score a second property. Although the persistent woes of the housing market are far from resolved, the general consensus suggests the situation is definitely improving.
Economist Patrick Newport comments on this philosophy. “Prices are still dropping. They’re just no longer in freefall,” Newport said. The most significant aspect of this idea is quite simple – direction. Sure, home values are still less-than spectacular, but the bright side of the matter rests in the growing assurance that we no longer exist in a state of chaos.Regardless of the situation, prospective buyers should be anything but frightened.