subject: The Outlook On Chicago Real Estate [print this page] The outlook on Chicago area real estate can vary greatly depending on what neighborhood you are looking at. For the most part, south side neighborhoods continue to see stagnant prices, while areas north of the Loop are seeing prices increase. The Lincoln Park / Lakeview / Boystown areas have continued to show growth. Even as other parts of the city saw plummeting values a few years ago, this highly sought after area stayed strong. New construction is up and units are pre-selling quickly.
Places that are further north, such as Uptown and Ravenswood, are seeing growth as well. These neighborhoods have always been more affordable than the trendier neighborhoods, and as prices continue to climb in other areas, families are moving to Uptown and Ravenswood. While it is still possible to get a great price in these locations, they are considered up and coming and property values are expected to rise over the next 10 years.
While housing market segments are beginning to climb back, many people are purchasing more affordable homes than they did before. Experts think that part of the problem with the housing crisis was due to buyers overextending themselves. People seeking to purchase now are well aware of this, and are looking for older homes, smaller homes, and more affordable residences.
One location of the city that's not showing strong growth at this time is the Loop. There are still thousands of unsold condos in the area, which means that buyers may be able to discover quite a bargain. This was caused by the huge build out in 2006-2008. As of 2008 there were more than 4,500 condos unsold in the area, but as quickly as 2009 that number had declined by 30 percent. However, it is expected that there will remain many condos unsold for a considerably long time.
Banks are now appearing to loosen their lending practices, which mean more people being authorized for loans. Just a few years ago, it seemed that anyone who signed the documents could be approved. Soon after the housing bubble burst, the opposite was true and people who had excellent credit couldn't get a loan. This is beginning to correct itself, and acceptable loans are being extended to people with reasonable credit scores.
On the whole, the outlook on Chicago real estate is good. While it is not expected to boom, it is also not anticipated to decrease. Sellers will see more qualified buyers, and buyers will find affordable homes out there.
