For the last several years home buyers have enjoyed historically low interest rates thanks to Federal Reserve policy that has kept them low as a form of economic stimulus, but that could be about to change.
According to the Congressional Budget Office's 2017 Budget and Economic Outlook, the interest rate the Fed charges to banks could be increased nine times by 2020 with the first rate hike set for this June.
If the Fed follows through with its plan, the federal funds rate, which effects all consumer loans, could rise to 2.8 percent by 2020, up from 1 percent today.
Read more at Chicago Agent Magazine here.
Investment property can be very appealing - besides diversifying a portfolio it can also serve as a durable stream of income and a savings vehicle over a lifetime. But there's a lot involved and it's definitely not a passive investment.
The Chicago Tribune recently published a column outlining what's involved when purchasing real estate for investment purchases; a higher down payment (banks typically require at least 25 percent down) and buildings require maintenance that often cannot be delayed.
Doing research is perhaps the most important part: understanding what properties will fetch in rent in order to support their costs and make the investment make sense.
Read the full column at the Chicago Tribune here.
Buyers, sellers, everyone is feeling good about the real estate market.
The Home Purchase Sentiment Index rose by 2.2 percent in April to 86.7 percent, a three point increase from the previous year.
Four of the six measures of the index saw improvement; consumers believe it's a good time to buy, sellers believe it's a good time to sell, home prices are up and incomes are up.
Read more at Chicago Agent Magazine here.
While certain city neighborhoods, particularly those along the Blue Line, have seen a lot of media attention for home price appreciation, some suburbs are posting big gains this year.
Oak Park and Cicero saw prices climb 9.2 percent year over year while Evanston and Skokie grew 6.9. Park Ridge, Des Plaines and Chicago Heights/Park Forest saw the highest volume, with sales passing more than 2,200.
Read more and check out a nifty chart at Chicago Agent Magazine here.
While most homes in Chicago have not recovered their pre-recession value, several neighborhoods have achieved that and more.
In West Town, Logan Square, Lincoln Square, Uptown and Lakeview, prices have risen to levels not seen at any other time in nearly two decades, according to a study from DePaul University.
The big driver of these increase, according to the researches, is gentrification. Logan Square/Avondale have seen price growth of 13 percent since 2000 while nearby Humboldt Park has seen 20 percent increases since 2015.
Read more and check out a nifty chart at Chicago Agent Magazine here.