August 6, 2010 - Ask anyone who keeps up with the Chicago real estate market when he or she thinks that prices will recover and you’ll probably get a different answer from each person. But Bloomberg Business week did an analysis of a wide range of maket reports and studies and came up with their own educated guess. According to their recently released report, prices of Chicago condos and single-family homes won’t reach their lowest point until the first quarter of next year (2011). After that, BB estimates that prices will increase by up to 16.3% over current prices by 2014.
But even if that 16.3% price increase of single-family homes and Chicago condos does happen in four years, it won’t match the condo boom prices of a few years ago. It will be a welcome improvement for developers, investors and home owners wanting to sell. The current median Chicago area home price is $205,000.
The BB report also went on to say that Financial services firm PNC believes that area unemployment is at its highest level right now (10.6% for June) and won’t climb any higher. Since the unemployment rate has a direct effect on buyer’s ability to purchase a new home or even keep up with a current mortgage, any improvement in the unemployment rate should help the housing market.
Regardless of all the expert predictions, right now is still a good time to buy if you’re ready. There are plenty of Chicago homes for sale at reduced prices, so buyers should be able to find a great deal.
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