According to a recent article in the Chicago Tribune, “Fewer Chicago-area single-family homes and condos were sold in 2010 than in any year in the past decade”. It further states how the median price and the number of properties sold has fallen in the last 2 years. You can read the article here: http://bit.ly/i1am38, for more details.
Where does this leave those looking to invest in Chicago real estate? Well, you can do 1 of 2 things, take it for what its worth and run away OR, you can view it like this…
The investor waters have thinned out and there are less active investors, which also means there are more opportunities for the investors that DO exist. Also, just because less properties have sold does not necessarily indicate bad news for investors and their business. Here is our line of thinking:
Buyers have not dissipated into thin air. People always want to find a place to live, its just a matter of getting peopel approved and into houses they can afford. Too many houses on the market are short sales and they are not selling because the agents working them don’t know how to do short sales. , which agents screw up. This information alone means that the rental market is HIGH and that short sales are also HOT. What is the down side to this? Its hard to get an investor to look at this as a negative. Moving on…
Also, there is inherit pressure for people who want to sell, to sell at a lower price. Imagine those who inherited a home, or own a property free and cant get a financed buyer to purchase their home? Investors or wholesalers with cash can help people that want a quick sale, for very reasonable prices.
Instead of worrying about what is going on with the market, investors are the ones who know how to use this and take what the market gives them and push forward.
Sales may have gone down, but that just means opportunity for investors to serve the market has risen.
