2014 is looking to be a great year for Real Estate in Chicago. The biggest frustration for buyers last year was lack of inventory. As prices continue to rise more sellers are coming back online as they get closer to breaking even, or even making a profit. Buyers should not anticipate a huge influx in inventory or the ability to low ball though; demand is still there and it's still a sellers market.
Increasing home values equals an increase in positive equity. Depressed owners should be excited to see an upswing in values. Just keep in mind, the more inventory for buyers the less your home will rise in value. It is all about finding that sweet spot in the market to take advantage.
Mortgage rates are still crazy low. I recall my parents purchasing their first home at closer to 10% interest. Sure 3% is better than 4%, but 4% is still better than 5 and 5% better than 6. Don't wait to see if the rates go up - they will. If down the road they drop again you can always consider refinancing at a lower rate.
Lastly, what goes up must go down and what goes down must go up. Although homes in Chicago are still affordable (generally speaking), they are becoming less affordable. Many neighborhoods saw a 10% increase in median sales over last year and although i don't forshadow them jumping another 10% by next year prices are still on the rise. Now may be your best chance to secure your dream home.
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