New Years Chicago Real Estate Thought Leadership for 2011
Carpe Diem..The time to purchase real estate is 2011. We have seen the lowest point of the Chicago market in November 2010..
Fact: the cork has yet to un pop on many bank owned foreclosed properties and short sales will still be prevalent as 1/5 homes are underwater
Fact: Prices will adjust another 5-8% in 2011 but not in every area. Some areas will be flat and see small gains. Inventory is becoming an issue. The Case- Schiller index has shown us 13 months of inventory are available currently while average is 6 months.
Opportunity: It is more expensive to build a new construction home than purchase one..Buyers dream..
The luxury market is starting and will continue to sell again There are only 2 luxury developments in Chicago that are on the books and have been moving nicely. 2520 Lincoln Park West and the Ritz Carlton. Both are being marketed by Prudential Rubloff. The biggest declines have been in the condo market.
Opportunity: The market is here for Affordable single family homes.. Every 10% loss in price is equal to a 1% gain in interest rate. Interest rates will only go higher. My thought is by year end 2011 well be b/t 5-6%...
Happy Holidays! Ron