Is the Chicago Real Estate Market Getting Better?

For the last few years the real estate industry has suffered a slowdown in sales and an increase in foreclosures. The Chicago real estate market has experienced its own ups and downs as well. Some of the suburban areas have been hit the hardest with homes faltering in sales. The South Chicago area has felt the slowdown the most, particularly in the areas of Flossmoor and Olympia Fields.

In order to get homes to sell, homeowners are willing to put extra work into their home to make it a more attractive purchase. Some homeowners are going so far as to remodel their homes from floor to ceiling if they believe it will help sell their home. This strategy has worked for some, but others have come up with their own means of selling their home. Homes which have been on the Chicago real estate market for quite some time have been marked down to below market value in order to entice buyers.

Although the real estate market is not a seller's market, it certainly is a buyer's market. With the economy in its current state even buyers are weary about taking on any more debt. This makes for a situation in which the seller is trying to hold out for the last time he can get, while the buyer is holding out to the last dime himself.

Individuals who have investment capital have been picking at some good deals on homes in the South Chicago area. The astronomical foreclosure rate has flooded the market with homes in all price ranges. This means that there are homes currently available which are considered as fixer-uppers, as well as homes which are ready to occupy. Smart investors are looking for homes which have plenty of equity, which makes the already rock-bottom prices hard to resist.

Other advantages come to the investor when the market is down for the seller. Often times, the seller will offer to add extra incentives to get the home sold. It is not uncommon for a seller to offer to pay the closing costs, and in fact some buyers will ask a seller to pay the closing costs if they were not previously offered. Some homeowners are so motivated to sell their property that they offer the buyer a six-month warranty on certain aspects of the home, such as the roof or the heating and air-conditioning system. If the home is well furnished, the owner may also offer the furniture in the deal to help sway the buyer to make the decision to purchase.

There have been new federal laws passed which make it easier for some homeowners to stop the foreclosure process and keep their homes. One law allows the homeowner behind in payments a grace period in which to catch up payments before the home can be placed in foreclosure. It is hoped that the Chicago real estate market will hit equilibrium by Fall of 2010. Until then more homes will be placed up for foreclosure, and there will be plenty of homes from which to choose for interested buyers.