Chicago Mark Nash real estate author and columnist says hype surrounding the real estate bubble hasn't played out in the Chicago real estate market and if recent sales numbers are any indication, good old Midwestern values have spared home buyers and sellers here from any hissing sound from deflating bubbles. While there has been conservative appreciation in home prices in the metropolitan Chicago market, speculation was never as large or as rampant as in California, Florida or New York. After all, the heartland doesn't see gambling with real estate investing as a good or a sure thing. The National Association of Realtors(R) expect both prices and sales to rise this year in Chicago. Recent numbers bear this out. In March of 2006 The Illinois Association of Realtors(R) reported that total home sales in March outperformed all previous years and set a new record for the month. Median home prices in the state were also up from 2005. Condominiums and single-family homes both enjoyed median price and total unit sales increases in 2006 versus 2005. Year-to-date numbers also are up over 2% from 2005 for the period January through March. The volatile east and west coast housing markets have seen larger increases in median prices the last several years, recent steep price and demand declines in those markets have made the Chicago market a stand-out for "tried and true" investors. Forecasters are predicting rises in Chicago home values in 2006 between 4% and 11%, depending on location and housing type. A strong diverse local economy and strong demand maintain real estate bubble hype here as a mirage. Mortgage rates continue to remain historically low and the mortgage options available to buyers has grown in the last few years to help the Chicago housing market steam ahead at a slow but steady pace. It's hard to put all the bubble mantras out of mind, but here in Chicago, hype has never sold well. The Chicago housing stats say buy. |
