Buyers’ Market

The National Association of Realtors® is running a cross-country campaign, complete with a bus tour, promoting the advantages of home ownership as a cost-effective alternative to renting in the current buyers’ market.

The ongoing tour included a recent stop at the Chicago Flower & Garden Show at Navy Pier, in the River North neighborhood, before going on to Denver and Portland, Ore.  One recent industry study comparing average rents and home prices for two-bedroom condos and apartments around the country found that buying a home is a better deal than renting in 75 percent of top U.S. cities, including Chicago. In addition to the personal satisfaction that comes with home ownership, each home purchase is also said to inject more than $50,000 into the local economy also. This comes in the form of job creation and consumer spending.

Having a buyers’ market essentially means that supply outpaces demand, so buyers have a lot of choices, and negotiating power also. This is expected to encourage more people to buy condos and other properties, but the NAR is concerned that prospective buyers may be holding off on making a purchase because of economic conditions, or the mistaken belief that buying a home is not a safe bet. However, home ownership continues to be an excellent long-term investment.

Of course, depending on individual circumstances, renting condos might be the right thing to do no matter how healthy the market is. Rent-to-own is also a worthy option for interested buyers saving for the down payment.

 Industry insiders also are concerned about efforts at the national level to reduce or eliminate the ability to use mortgage interest as an income tax deduction.

Buyers’ market or not, our Realtors® are here to help you sort out your options and get the best deal possible.