Real Estate in ChicagoReal estate investing in Chicago has been under the experts’ radar for a while now, and it looks like the market has finally struck gold for investors. The latest report by the Illinois Association of Realtors has brought good news for investors in the real estate niche, indicating the highest number of home sales in March alone since the year 2008.

Not only has the number of sales for single family homes and condominiums increased significantly, but the median price for an average home sold in Chicago has also increased by 9 percent.

A 13.8 percent year-to-year increase in sales and thriving median prices is surely the good news that investors have been waiting for. With affordable prices and a tightening economy, more and more buyers are flocking the Chicago real estate market, making the situation ideal for property investors.

The inventory has dropped down to 45 percent as compared to last year, according to figures quoted by the Chicago Association of Realtors. Decent houses literally fly off the market in a matter of days rather than weeks, and this state of urgency is one of the main factors that have increased the overall sales of property in Chicago.

However, the dropping levels of inventory is not the only reason contributing to the surge of home sales. The mortgage rates are also stooping at historic low figures, with an average interest rate of 3.54% deemed as affordable and attractive for a majority of families. The city is finally out of the recession in the economic front, and as the employment conditions continue to improve, a lot of people are considering locking into their first mortgage and own an economical property in Chicago.

The great news here is that the prices are not only attractive and affordable for the buyers, but also for investors. The median prices for all kinds of property have increased as compared to last year, with houses in the metro area rising up to 2%, condo prices rising 9.3 percent and an average increase of 9 percent seen for single-family homes in March 2013.

River Walk in ChicagoAmongst the overall sales being made in the Chicago real estate front, a sizeable chunk belongs to foreclosure properties and short sale homes. The inventory is at an all time low, giving investors an ample chance to flip existing property or invest in foreclosed homes. A little up scaling and refurnishing enhances the appeal and allure of the property considerably, making room for more and more buyers getting attracted to potential options.

Aside from the affordable residential options, luxury property sale is also on the rise in Chicago, with the increase in development of high rise projects fueling up the market. A large number of experts are speculating Chicago to be the next Manhattan, with many penthouses and luxury properties over $5 million being sold off in recent times.

Real estate investment in Chicago offer multiple options and variations to the investors. However, proper research and knowledge about market trends is an absolute must to strike a profitable deal.

by, Paul Cook: EquityBuild News Contributor

Source:
Statistics by the Illinois Association of Realtors