We all know about the rising home prices and not enough inventory in Chicago but what are the real numbers? Let’s analyze.
Midwest Real Estate Data published a report showing new listings in Chicagoland are up 12.7 percent and under contract properties are up 7.7 percent – http://chicagoagentmagazine.com/mred-report-reveals-chicagoland-may/
Inventory has fallen around 16 percent within the lady 12 moths. Also the home affordability in Chicagoland has taken a dip this year, down roughly 25 percent.
Market time for homes decreased 15.7 percent from the same time last year, bring the average listing time to 100 days.
Sale price increased 26.7 percent from the same time last year, raising the average closing price from $282,370 to $310,632. Closing sales decreased 5.6 percent from the same time last year.
In summary, we definitely took a few good steps in the right way toward Chicagoland’s housing recovery. How long is the journey? We have to wait and see.
After many surveys have been done and many opinions expressed the debate is still ongoing about a preference for a location of a home: city or suburbs? It seems that this time millennials have a weighing vote on that subject.
CNBC’s Diana Olick says millennials are staying in the suburbs- http://www.cnbc.com/id/101792518
One of the reasons is to simply live with their parents to save money and pay off their student loans. And after they decide to move out, most likely they will choose to rent. “Even though rents have skyrocketed in the past few years, renting does not require a down payment nor high credit scores to qualify for a loan”.
One of nation’s largest home builders- Lennar ventured out into multifamily apartment construction and now they own around 17,000 units. The company’s CEO S.Miller is certain that the millennial generation will fuel his investment.
Apartment rental demand continues to be very strong, in both large cities and smaller metropolitan markets. However with higher rents today, rental affordability is also weakening and the renters are not able to save for their first home.
So who makes the wheels turn in the big cities? According to Census- babies ages 0-4. Even though the number of young children declined, likely due to a still weak economy, it grew fastest in the most urban counties. With the home prices and interest rates on the rise many young parents simply can not afford to buy a suburban home.
National apartment occupancy hit incredible 95 percent in May- http://www.cnbc.com/id/101773495- the highest number in the past six years, according to an apartment data research company Axiometrics. The decades long debate ‘rent or buy’ seems to favor rent. “The year-to-date effective rent growth numbers portray an apartment market that may be having its strongest year since the Great Recession ended,” said Jay Denton, vice president of research at Axiometrics. The factors leading to that situation remain still the same: weak employment for young America who already has quite a bit of debt in student loans and uncertainty in a housing as a investment with long term perspectives. New, yet logically very needed is an increase in phone applications, that aim to combine rental listings, reviews and even ability to pay rent using your cell phone.
Foreclosures lately have been a part of our daily living.We hear the statistics almost on an everyday basis.Here are some good news for Chicagoans.Only 2,800 foreclosure cases were filed against apartment buildings which is the smallest number since the housing crisis began.30 percent drop since 2012 is a very promising sign-http://articles.chicagotribune.com/2014-06-13/business/ct-apartment-buil…
I will go on a limb to say, that we know the answer.I’m pretty sure most of us would say: Beverly Hills or New York.
And we guessed them wrong.Every year realtor.com looks at their websites and the activity of all people looking for a rental apartments or dream homes.After analyzing all research inquiries and clicks they receive from potential clients, they put together a list of most searched neighborhoods in our nation-http://www.huffingtonpost.com/realtorcom/the-years-most-searched-z_b_446…
Charlotte, NC is in along with Florida’s Hollywood and West Palm Beach.
Surprisingly the first place goes to our own Chicago’s Old Town with its charm and dining scene.
We are now half way through the year.Will Chicagoland make the list again? Let’s wait and see…