3 Reasons Why Chicago is a Great Place for Real Estate Investors
1. Rent’s are on the rise: According to Zillow rents in Chicago were up 5.3% last year. This means landlord buyers have a broader range of properties that can put them in positive cashflow.
2. Home values fell more dramatically in Chicago and the rest of the US: Home prices in Chicago are down a median 38% from the peak compared to 19% nationally. That means more properties sitting on the market longer (in the median 112 days in the Chicago Metro Area) and more houses cutting their list price while still for sale (41% of homes for sale in Chicago did this in 2012).
3. 2013 Home Price Forecast for Chicagoland is flat: Fiserv using data from Case Schiller forecasts an uptick of just 0.8% by the end of the second quarter of 2013. This is due to a variety of other factors, among them Chicago’s unusually slow and cumbersome foreclosure process.
The end result of all of the above is that Chicago has more sellers who have been waiting even longer to sell their homes. The pricing forecast also demonstrates that despite signs of life in the general economy, housing in Chicago will lag behind meaning more opportunities for buyers who are able to offer flexible terms, pay cash and generally do the things that regular buyers can’t.
To learn more about buying activities in the Chicago Area for landlords, rehabbers and even retailers just visit our buyer signup page and join our network of working real estate investors.
For more info on the Chicago Housing Market check out Chicago Magazine’s excellent April summary of market conditions and their awesome breakdown of price stats for just about every neighborhood in the city.
For more info on renting check out Chicago Real Estate Daily’s recent article here.