Chicago Real Estate and Blackhawks
As the Blackhawk’s historic playoff run is being celebrated in Chicago, other cities also have reason for celebration. The recent increase in home values is sweeping the nation and greatly impacting other cities. Although the real estate market has not completely recovered, there are signs of a constant move upward. However, this information prompted chief economist Lawrence Yun to state that home purchases should not be do or die last attempts, like Dave Bollards array of recent game winners.
Phoenix, San Francisco and Las Vegas are just some of the numerous cities that have seen the prices of homes rise more than 20% higher than they were even just one year ago. Therefore, chief economist Yun states that individuals are being rushed to make quick judgments on significant purchases, like a home. The reasons for quick decisions on home buying include less available home options, quick bids and fear of overpaying more in the future. These considerations are leading to individuals making hasty decisions in reference to the real estate market.
However, the real estate market trend in Chicago is much steadier and not as volatile. Prices rose a healthy 9.3%, but didn’t rise to over 20%, like many other areas in the nation. This has resulted in a calm real estate market that is not filled with haste or rushed decision making. Chief economist Yun explains that clearly by suggesting that individuals have the time to make more realistic and informed financial decisions in reference to the real estate market.
Chief economist Yun seemed pleased with Chicago’s real estate market even though its rise is much less significant than other cities. The 9.3% growth is seen as a positive that will only continue to steadily rise and rising interest rates are not forecasted to have a detrimental impact. These rising interest rates will have a more significant impact on the real estate markets in larger cities, like Boston, New York and San Francisco. However, chief economist Yun forecasts that Chicago will be more prepared to successfully absorb the increase in interest rates.
Although chief economist Yun had great things to say about the Chicago real estate market, he did warn about Chicago’s substantial “shadow inventory.” This inventory can be problematic and have lasting effects on the real estate market in the foreseeable future. It is definitely something to be aware of.