May 10
5
Investing in Chicago Real Estate
Anyone who has watched the news in the past 18 months knows that we are in the midst of a real estate recession. Overextended borrowers across the U.S. are having their property repossessed by lenders at alarming rates. According to RealtyTrac.com the country had over 308,000 new foreclosures in the month of February 2010 alone. A decrease of 2% from January 2010. The astounding fact is that the month-to-month decrease of 2% is the lowest since early 2006.
With a reported 8.9 million foreclosed homes being put up for auction and sale by the banks nationwide over the past 4.5 years, market supply is grossly ahead of demand. To make matters worse, in an attempt to not repeat the subprime crisis that started this mess, banks have steadily increased lending requirements. In totality, we have more houses and fewer qualified buyers. The only possible result has been rapidly declining home values.
This does provide the savvy investor with an opportunity to invest in real estate that hasn’t been seen since the Great Depression. Financial leaders worldwide are pouring money into the real estate investment market. We recently had a conversation with a realtor in Chicago that told us he is seeing hoards of Japanese investors buying homes without ever seeing or inspecting the properties. The market indicators and trends all point to one fact – this is the right time to purchase investment property in Chicago.
“Well, real estate is always good, as far as I’m concerned” – Donald Trump
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