HERE IN CHICAGO Many First-Time Buyers Wait it Out – and Carefully Weigh Their Options!
HERE IN CHICAGO Many First-Time Buyers Wait it Out – and Carefully Weigh Their Options!
MANY FEEL WE HAVEN’T HIS BOTTOM IN HOME PRICE MARKET YET – OTHERS TIRED OF RENTING NOW DECIDE TO BUY!
As a matter of instinct you might think the current Buyer’s Market here in Chicago and in other parts of the U.S. would have many would-be buyers rushing out to by real estate. But that is not happening as many buyers especially those who have never owned a home before feel home prices will go down even further. Some don’t want to act with too much haste – they feel waiting to buy can actually SAVE them money!
There is another side to that coin however. Many of those that don’t buy continue to rent. Renting in itself poses several disadvantages – lack of equity growth and lack of the mortgage-interest tax deduction enjoyed by home owners are the two most obvious ones.
Eric Tyson an expert on personal financial planning and author of the book "Let’s Get Real About Money" feels the degree of indecision potential buyers have depends on their aversion to risk. "Renters who are eager to buy are typically optimists" Tyson says "while those waiting on the sidelines are usually pessimists about the U.S. economy and the potential for a near-term rebound in the housing sector." Of course a buyer’s previous experience in larger investments can affect their perception and their behavior.
To make both the optimists and the pessimists feel more comfortable Tyson suggests buyers do a careful analysis on their considered new home purchase – with the help of a Real Estate Professional for that added level of comfort.
He proposes a careful analysis of economic trends in the areas under consideration. Is their job growth or shrinkage? How have prices changed – not just withing the last few months when they have been under downward pressure but within the last several years – has their been a longer-term trend of neighborhood appreciation?
Examine the neighborhood infrastructure – are schools respected for student’s high marks and standardized test scores? Are neighborhood parks beaches and community centers thriving points of activity for nearby neighbors? Is the business community thriving and is it growing?
Review your personal economic situation. Is your job secure? Do you have enough reserve funds for an emergency home repair upgrade or longer-term home improvement?
A couple of years ago in a much more seller-centered real estate market there was little opportunity for detailed analysis. Most properties coming to market sold quickly many in multiple offers and buyers didn’t have the time to thoroughly analyze this information always important to the home buying decision. Today however with very high levels of inventories in many areas and comparatively slow sales – in Chicago and in most suburbs – buyers can afford to make a more deliberate decision.
Read Ellen James Martin’s article in the May 23rd edition of The Chicago Tribune for more info.
DEAN MOSS & DEAN’S TEAM CHICAGO
