When Will Chicago Housing Prices Start To Rise Again?
December 2nd, 2009 categories: Chicago Info/News, Economic Recovery, For Buyers, For Sellers, Housing Market
Are you a gambler? Are you waiting to make an offer on a Chicago condominium or single-family home because you’re hoping that prices will continue to dip?
Be careful. You might wait too long.
That’s because housing prices in Chicago today are as low as they’ve been in years. According to the latest numbers from the Illinois Association of REALTORS®, the median sales price of an existing home in the city this October stood at $215,000. That’s down 18 percent from the $262,250 median sales price one year earlier.
It’s also down significantly from just one month earlier. In September of this year, the median price on existing homes in Chicago stood at $225,000.
What will happen in November? How about December and the early months of 2009? No one knows.
Trying to time the real estate market so that prices are at their lowest when you buy is one tough challenge. It’s a bit like playing the stock market. You can do your research. You can listen to experts. You can go with a gut feeling. But you’ll never know for sure if prices will rise or fall after you make an offer.
That’s why I tell my clients to buy when they’re ready, and not to worry about the median sales price. For one thing, the price you pay for a condo or single-family home depends on the quality of the residence, its location, its size and a multitude of other factors. The median sales price doesn’t mean all that much when you’re making an offer on a specific home.
Secondly, housing in Chicago has traditionally been a terrific investment. The key is to hold onto it for a long enough period of time. Generally, if you stay in a Chicago condo or single-family home for five years or more, you’ll be able to sell for a solid profit.
My advice, then, is simple: If you want to buy a home in Chicago, contact a skilled REALTOR® and begin the process. Trying to time the housing market will only cause you headaches.
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