Monday, December 13, 2010

Chicago home affordability up: Party like it's 1999

We got in before the Holidays!

Crain's reports that the local home affordability index has reached the levels of 1999... a key home buying year Bob and I had identified as "advantageous" if you are a seller now. The story also states that (still) no one is buying...oy vey.

It is clear, as the Crain's story suggests, many people who'd like to buy or sell there home and buy a move up home simply can not due to financial circumstance. The problem to us on the street is that many who can buy with decent down payments and or qualify for appealing low mortgage interest rates have a confidence issue.

In any event, my wife and I bought a single family home in Chicago this year in our neighborhood of choice because of the these favorable market conditions. We had a need for our family and wanted to graduate to a single family home.

We are advising our clients to at least look at single family homes, two flat and three flat multi-units as an option even if they initially contacted us to view and purchase condos. Most consumers do not realize that they have more options for housing types and that lending is NOT that bad. Most of our real estate transactions this year, including my own that involved buying another house prior to selling my existing home, had smooth financing. The lending process on single family and small multi-unit dwellings have also been smoother than condos in general.

We still like condos as an alternative to renting and living under a landlord, especially the amenities and low maintenance lifestyle for busy people condos can afford. But we also like to point out the possible affordability of owing a house or building many consumers are unaware of.

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