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Chicago Real Estate Blog - Details |
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Happy New Year! Predictions for the 2008 market
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Posted by: John S. Osga - 1/1/2008 6:47:51 PM
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It's already 2008. One question on everyone's minds in real estate is what is expected in the market this year - particularly for Chicago?
Based upon what's happened with the credit crunch, deterioration of prices, an over saturation of inventory, the 2008 market here in Chicago doesn't look too good from many perspectives. However, there are some positives as well, so let's take a look.
On the negative, we have a market with over priced homes, over saturated inventory, and credit that is now harder to obtain. The market in Chicago, like the rest of the country in most places, will not stabilize until there is a reduction in home prices further than what we have already seen. The 2.3% Chicago residential real estate price reduction over the past year is not enough. Prices would probably need to continue to fall somewhere in the neighborhood of 15 to 20% for the market to stabilize. Sorry sellers, it's not going to get much better until you start pricing your home to where more people can afford it.
On the positive, if you are looking to buy a home - it's a great time to buy that home to live in. If you are looking for a primary residence, especially those who do not currently own a home, you can get more for your money now than previously. Do not be afraid to offer 80 to 85% of whatever the seller is asking. There are plenty of motivated sellers that just might accept.
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