chicago-condos & Chicago Real Estate & downtown chicago condos pcherry on 11 Jun 2009 07:03 pm
Foreclosures, First Time Buyers May Kick Start Market
June 11, 2009 - According to the National Association of Realtors, in the first quarter of 2009, 50% of all home sales were distressed homes (short sales and foreclosures). First time buyers also made up 50% of the total sales in the first quarter. These first time home buyers are actually the reason many experts are predicting a real estate recovery sooner as opposed to later. And the widely advertised $8,000 tax credit is another incentive to first time buyers.
But even with some increased sales activity, Appraisal Research Counselors found that downtown Chicago condo sales are down by more than 65% from 2005 when almost 4,400 units were sold. A recent article in REJournals also stated that there are about 4,700 unsold units in the Chicago real estate market. They are predicting that those unsold condos and townhomes will be under contract within the next three years partly due to the fact that developers are planning no big projects in the near future.
Another potential factor that could kick start the housing market is if Chicago is selected to host the 2016 Olympics. In fact, even Chicago Spire developer Shelbourne has hinted at that event possibly being a catalyst for finally getting that high-rise off the ground.
And another prediction the article made was that “green” construction would still be popular among future buyers. Younger buyers are often more aware of eco-friendly practices and are apt to be inclined to purchase homes with more eco-friendly and energy efficient features, especially as they become more affordable in the future.
But until this housing market revival takes place, there are still plenty of Downtown Chicago Condos ready and waiting for you.
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