Chicago One of the Most Undervalued Markets in America:-  A recent article from Forbes (1) reported how home price increases, while still climbing, are losing some steam. Data taken from real estate market miners S&P/Case Shiller showed that of the 20 chicago real estate investingmetropolitan areas surveyed, home values increased a modest 0.9 percent in June after a rather mundane 1.0 percent rise the month before.

We reported that here just a few days ago. Yet another study that accompanied the same Forbes article reported on the 10 most overvalued and undervalued housing markets. What was one of the most undervalued real estate markets in the country? Chicago.

This study compared Chicago’s current median home price with last year’s median then compared those same numbers with figures from 1998. In Chicago, the median home price is $110,730 which, after adjusting for inflation, showed a zero percentage increase from the previous year. The 1998 number? When comparing home prices from 15 years ago to current values, again after adjusting for inflation, prices today are actually lower by 8 percent. What do those numbers tell us?

According to the study, Chicago’s real estate market is extremely undervalued. Real estate investors today who buy Chicago area real estate in the current market should see consistent equity gains faster than in other markets. In other words, Chicago real estate today is a bargain.

When you combine Chicago’s undervalued real estate market with the current interest rate environment, which is still near historic lows, then it’s quite possibly the best time to invest in real estate than ever before. Ever. And that’s not some pitch from a real estate office but hard, factual numbers.

Chicago provides real estate investors opportunities for both “buy and sell” and “buy and hold.” For those who prefer to flip their real estate, an undervalued market means investors can expect to turn a better profit and for those who intend to hold their properties, not only are prices attractive but long term financing with today’s rates means greater positive cash flow now and in the future.

  1.  Overvalued and Undervalued Markets