Chicago Condo Market

To say the least the economic news has not been the best in the last several months but sometimes we forget to notice some of the more encouraging trends that may be underway in the Chicago condo market.  That does not mean that we should minimize some of the sobering national economic news with consumer confidence down and the psychological worries about rising unemployment.  There are some genuinely positive developments with all this news.

The Chicago condo market is improving due to the current rental market.  Chicago is known for the consistency in which rents increase.  The media has sensationalized the troubles in the real estate market regarding the difficulties in getting financing to purchase a home or condo which has encouraged landlords to increase their rents year after year believing the market is glutted with renters.  Nothing could be further from the truth.  With the advent of rent to own programs and the $8000 tax credit more and more potential first time home buyers are entering the market.  There is no question even in today's real estate market that owning a property is a much better alternative if you intend on staying for at least 4 or more years.

Another recent positive development which hopes to draw even more people to purchase a home or condo is Congress's new $8000 non-repayable tax credit.  This is available to anyone who has not owned a primary residence during the past three years.  The credit is equal to 10 per cent of the home's purchase price up to a maximum of $8000.  You need to act now since it is available only for homes purchased on or before January 1, 2009 and before December 1, 2009.

The Chicago condo market is poised for a small rebound in 2009 but then start a steady climb toward improvement in the years following.  The housing market has long been an indicator of economic boom or bust and today's market is no different.  The housing market has always run in cycles, some short and some longer but there is always a rebound and this cycle is no different than those in the past.   There will not be as quick a recovery we have seen in past troubled economic times but the kind of steady growth expected will be what is needed to sustain a long term housing recovery.