Will January Beget a Warm Spring Real Estate Market in Chicago?
So what will the Chicago’s spring real estate market bring this year?
More of the same? Or perhaps a freeing up and dislodging of pent up demand? I’d like to say that we will know more after today’s round of open houses but the deep chill, accumulated snow and slippery walkways may hinder some folks who otherwise would ambulate. So any estimation likely leans toward anecdote.
Historically January in the Chicago real estate market is the commencement of the spring home buying and selling cycle. But for what seems to me to be the last three years January has rolled out like a tire without enough air. There have been fewer and fewer transactions for less and less dinero, resulting in inventory gathering dust and buyers standing on the sidelines because their places go unsold (and selling is the basis of their home buying).
So what does this January promise for the Chicago real estate market?
With prices suppressed, demand in the pipeline, expectations honed on the part of both home buyers and sellers, and a surfeit of inventory there’s the prospect that there will be an uptick in activity. What might subvert this otherwise desirable outcome, though, is more of the same of the last 24-36 months. In other words:
- lenders that don’t (lend)
- purchases reliant on the sale of home’s that don’t (sell)
- consumer confidence that isn’t (confident).
Will we see more of the same? If the past few months are any indication, thawing should continue. Home sales have trended up the past few months although activities have been bracketed on the lower and upper ends with the ample middle gaining weeds. The key question and task becomes how to stimulate that middle where the bulk of inventory and demand rest.
So does today promise to become the harbinger of better things to come in the near and far terms?
The key rests with banks making loans to facilitate home buying
Although tax credits play a role, they serve no role when folks who make too much to qualify for them. What’s far more important is for lenders to lend. Right before the end of the year as many bankers were harrumphing and guffawing about paying down the federal bailouts they received just a year prior at least one major player was issuing edicts that it would indeed stand ready to lend come the turning of the new year.
My hope is that what Bank of America said it would do it will do and that other lenders will follow suit. Really.
As with anything, time will tell.
Several Chicago Open Houses Today
2449 W Logan is a Logan Square condo for sale or rent that is open from noon – 2p
1218 W Carmen, 5 is an Andersonville condo for sale or rent that is open from 11a – 1p
6630 N Fairfield is a Rogers Park bungalow that is open from noon – 2p
And I will host 1724 W Wolfram a Lakeview single family home from noon – 2p before meeting clients to view homes in Wicker Park and the East Village.
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