It's hard to believe it's already been TEN years since our country and the world for that matter fell into the worst depression ever seen. Ten years goes by fast and a lot has happened since that time. Although it probably feels today like it flew by, it certainly did not feel like that at the time.
I was just getting into the industry then and I saw first hand over the coming years how the banks royally screwed over the American people. The amount of distressed properties were insane back then. Most of them were due to the fact people could not afford their mortgages after their "teaser" interest rates expired. Imagine thinking you are realizing the "American Dream," buying a house for your family only to find out months later that the mortgage payment you thought you had to pay skyrocketed and now you're left with bill collectors calling and past due notices piling up. It was a brutal time but there is always a silver lining to everything and I always try to look at things that way. Becuase of what happened, people became resourceful and as a country, we worked to pull ourselves out of that horrible time.
OK maybe it wasn't as simple as that, but you get the picture. Now ten years later we are seeing a resurgence in new construction everywhere. Home prices are rising all over Chicago and people are realizing how affordable it is to buy versus rent. Its almost impossible to go anywhere in the city and not see a construction crane or a "coming soon" sign on a fenced off area. Unfortunately, most of what we see is either a rental building or office building. Any new condo buildings being built are for luxury buyers looking close to or above the $1M price point.
These new buildings are a sign of where we are now. Unfortunately, the costs of building are very high and developers are reluctant to build any high rise condo buildings in the mid price points (around $500K) because the profit margins are so small. Long story short, the Chicago market in the near future is going to continue on the path its on. We won't see a true recovery to the pre-recession market until developers start building mid price high rise condo buildings or some of the new rental buildings are converted into condo buildings in the same mid price point.
For now, we are going to continue to see a shortage of inventory and a seller's market. If you are a buyer looking to buy make sure you are fully prepared in all aspects going in. Speak to your agent and be ready to move quickly. The good properties do not last long!