Housing Market Trends in Chicago
Housing markets across the country have been recovering steadily, with many cities experiencing a rise in the market values of homes. Some regions are experiencing rapid recovery while others are going through a slowdown. One of these regions experiencing a slowdown is Chicago. The windy city has seen its housing market rise and fall at the same time. The recovery process of the last quarter of 2013 as well as January has experienced an uneven recovery which is affecting homeowners living as close as 30 mile apart from one another.
There is a big difference in the way various categories of houses are responding to the market changes within the city. For example, the market for single family homes has been recovering very well as compared to condos. The prices for both single family home and condos have been on a steady increase on an annual basis. There is however a certain difference in the market trend for each region within Chicago.
This difference can be analyzed from within different areas in Chicago. For example, homes outside the city near Arlington Heights and into DuPage and Cook County are experiencing some positive recovery with annual gains. This position reverses as you go further out from the city. The recovery process may be slow and uneven but it is steady.
As you head towards downtown Chicago, you are likely to experience an annual decline in the value of homes found within the region. This is a trend that is likely to go on for a while before it picks up. Home owners are not selling their homes and buyers are not consistently buying. This decline in the market value of homes may be attributed to the region’s prevalence to upside down mortgages and foreclosures.
Overall, the housing market in Chicago is on the right track regardless of the fact that it is about 38% below its 2007 peak. From the previous annual trends, it is clear that the Chicago housing market is off the critical list and is slowly recovering. However, the difference of property prices between cities, regions and neighborhood cannot be ignored. Home buyers and sellers should prepare for a more conservative housing market in Chicago. This is because apart from the impact of the economy on the housing market, there are many other factors that will affect the changes that are likely to occur in 2014.