If you are one of those real estate investors who are wary of the housing bubble hitting the market too soon, one of the safest places to bank upon is Chicago. According to the statistics collected by Zillow,Chicago real estate investing, a buyer's market Chicago lies at the top of the list of buyer’s markets in the country. From foreclosure homes to luxury properties, never before has the real estate market been so enticing and attractive for investors.

 Housing market all over the country has seen a stark up rise, resulting in tightening inventory and fewer houses staying in the market. The frenzy in buying homes all over the nation is a direct result of low mortgage rates and the growth in economical prospects.

Chicago too has had its share of ups and downs in the market, but the current real estate situation is more in the favor of buyers as compared to sellers. According to a report published by Zillow, one of the main factors taken into account when thinking about a buyer’s or seller’s market is the impact of a ‘negative equity bubble.’

The concept of being in negative equity or underwater means that the mortgage most sellers owe on their property is higher than the actual price of their home. Thus, they are awaiting the increase in prices so that they can sell off the property at a much profitable rate. This ultimately decreases the number of houses coming into the market. The few houses that do make the cut are met by tough competition, and this lack of inventory increases the demand of decent property in the market to record highs.

Chicago is one of those markets where the negative equity ratio is particularly high. Around 34% of negative equity homes are underwater by 20%, while a 15% of homeowners owe twice the worth of their homes to mortgage lenders. This is also one of the main reasons that the number of foreclosure homes in the market is increasing – people are reluctant to sell, are waiting for the prices to increase, and sooner or later the heavy mortgage debt takes toll on them.

The foreclosure homes hitting the market are one of the best options that an investor can have – buying these at low prices and then flipping them over for a profit can spell out to be a winning deal for an investor.

While foreclosures and short sales do have investor’s value attached to them, there is also a growing emphasis on new housing projects in Chicago. Building owners are particularly at an advantage currently as the housing market is showing no signs of slowing down and the buyer demand is increasing with each passing day.

Coming to the dreary predictions of a housing bubble coming to the American real estate market soon, thankfully, Chicago lies in the least risk zone.  According to Glenn Kelman, the Chief Executive of top brokerage firm Redfin, Chicago is one of those metropolitan markets that are least vulnerable to a setback in the real estate market.

All that being said, statistics clearly indicate that Chicago is one of the best markets to think about a real estate investment at the moment.

Source: Statistics from Zillow and Redfin