Real estate prices are low, but playing the market always involves a little bit of limbo. How low will they go? Should you wait to purchase real estate in Chicago, or is right now the best time to enjoy the lowest price?
While housing statistics throughout the country are very discouraging, the Chicago local market is on the upswing. Be aware that all real estate is local; what affects property values in Los Angeles may be a different story in Chicago. At the same time, national statistics are affected by what happens in California considerably.
One of the most important housing statistics to consider is the risk index score, released by PMI Mortgage Insurance Company. The score indicates the likelihood that prices will decrease in the next two years. A risk index score of 100 indicates a 100 percent chance the value will be less in a couple years. The Chicago local market recently received a risk index score of 1.5, or a 1.5 percent chance of being worth less in two years than it is today. The real estate market in Chicago is recovering and should maintain or increase its value over the next two years.
Another important statistic to consider is the affordability index that compares the affordability of a home to market conditions in 1995. The number considers home prices, incomes as well as interest rates. An affordability index higher than 100 indicates the real estate is now more affordable than it would have been in 1995; less than 100 indicates it is less affordable. The metropolitan area of Chicago holds an affordability index of 101.89, making its affordability directly in line with 1995 rates.
If you are considering buying a condominium, this might be an ideal time. Statistics show that housing prices now are comparable to what they were in 1995 and that the value will maintain or increase over the next few years. Not only do you get the housing at the rock bottom price, but the real estate will probably accrue overtime, earning you an investment for your homeownership.
Researching the numbers indicates that Chicago’s realty market is on the upswing. Now is the time to get on board, as prices are bottom dollar and will only grow in value.
