Chicago real estate, living and neighborhood perspective

Fall Review

With the elections behind us and the winter season approaching, many are watching the housing market for changes in activity.  But much of the recent data seems to support much of what has been talked about on a national level. For Chicago, inventory has decreased throughout single family, attached condos / townhomes as well as multi-units housing. Additionally, closings and contracts written are on the rise as well although median prices overall have dipped slightly as many sellers who have been unable to sell thus far have taken more aggressive positioning in the marketplace before the slowdown during the holidays sets in.

Although not every neighborhood in the city is benefiting from the current sales activity, the data is promising. Investors have noticed the trend this past year with many investor purchases in attached housing (condominiums) and multi-units, with some areas facing a lack of desirable inventory in available multi-units and commercial properties.

With rental rates still continually increasing throughout many parts of the city, investors have stepped up in purchasing entry level housing, including studios, one and smaller two bedrooms condominiums as rental properties capturing attractive capitalization rates and as first time home buyers either stall their purchase, or skip purchasing a smaller condo, to take advantage of current home prices, the market of entry level condos is wide open for many investors.

To help curb investor units in condo associations, many HOAs have started having discussions on possibly limiting the number of rentals allowed, or other measures to control investors. Some associations have enacted no measures at all and yet carry a small percentage of rental units within the association.

Consumer confidence has been increasing as well, and although the index doesn’t directly impact real estate, as it does other markets, such as retail – it does give insight into the mindset of the country. Are we in a savings or spending mindset? This could lead to an upswing in the business and commercial real estate sector. Trends for these markets typically follow the residential sector, but coupled with more spending, it could make certain businesses and commercial properties more attractive as an investment alternative as multi-units, mixed used buildings inventories remain low.

>> Check out the most current market trends for both residential real estate and commercial real estate

Watch for empty store fronts filling up this spring and previous shopping destinations bringing back retailers and merchants. Even shops on the Mag Mile are getting a head start.

Realty Evolved