To let me know the exact month and day the market “bottomed out”. I’m waiting to time it (JK:). This is, in every single aspect, the best time to BUY real estate in Chicago since the early 80’s. Yes- I realize what I just said. The real estate market in Chicago is DONE sliding. We are at bottom.

Will prices remain soft?

Statistically yes. In reality, not so much.

Last month the National Association of Realtors posted numbers that 45% of the transactional volume involved distressed properties. That means something in short sale or foreclosure. If the average discount on a distressed property is approximately 20% off market value- then doesn’t it make sense that the average sales prices market wide will appear significantly down? I think my 4 year old can answer that. I have told so many clients this recently: good properties that are priced well are selling, and faster than you think. I have personally been involved in 3 multiple offers since February. Offers have been low but the far majority of sellers are not willing to give their place away. 

In short, there will still be deals out there over the next few years. But…

Will interest rates be so low?

Likely not.

Will inventory be as plentiful?

It’s already starting to be absorbed.

There are many indicators practically screaming a change in tide. They all point in the direction that we are experiencing a "bottoming" effect right now. You’ll see what I mean, this time next year.

Getting a great deal is always about the math. In this case, the math is simple.

Most builders operate on a 20%(+/-) margin. That means if they are selling a loft at $200,000. The total money they have into that home is about 20% less than that, or $ $160,000. Since market times have grown and builders have eaten up much of their profits, courtesy of interest charged by the bank, many of these margins are closer to 10% or less today.

As I’ve mentioned in the past, it has everything to do with location and the condition that the property is in. Also, if they are actually selling homes (yes- it still happens!) the developer is less likely to bend as much on price. For example, I am selling the Marquee at 1464 S. Michigan Ave in the South Loop. The developer, Sedgwick Properties, doesn’t negotiate too much on price, they don’t need to. The property is selling. I really don’t mean to plug the building but it’s a perfect example of a very safe place to buy in today’s market.

• Home Values
• Signs of a Recovery
• Affordability
• Neighborhoods