Although 2014 was a fabulous year for the downtown Chicago real estate market, 2015 aims to be a whole lot better, and here are just a few reasons why:
The Chicago Rental Market Will Continue to Thrive
If you think the past 12 months were insane for the luxury apartment market in Chicago, get ready for an even crazier 2015. In 2013, 2,882 apartments in large-scale developments were added to the downtown market, while in 2014, another 2,104 were also delivered. Next year, an astonishing 3,838 new apartments will hit the market—a record number for downtown Chicago. Let the madness begin!
Looser Lending Standards Now in Effect
It’s been a long time coming, but Fannie Mae and Freddie Mac have finally implemented new lending guidelines that put in place a 3% down payment mortgage, ultimately changing the game for many future first time home buyers. The lower down payment option certainly makes it much easier to qualify for a loan, and with so much pent up demand that’s built up over the last several years, we could very well see a major increase in home sales over the next 12 months. See more on pent up demand below.
Pent Up Demand Ready to Explode
Over the last 5 to 6 years, there’s been what’s considered lower than normal activity regarding home sales, and much of that relates to Millenials and would-be first time home buyers simply waiting to buy a home, or perhaps unable to qualify for a home loan under the stricter lending guidelines we’ve seen over that same time period. Well, with the economy continuing to improve, job and income growth in the U.S. on the rise, and looser mortgage rules now enacted, much of that pent up demand will now be ready to dive into home ownership, and with mortgage rates still hovering around 4% (but expecting to rise to roughly 4.5% sometime in the next 12 months), it could make for a very busy spring season, especially when it comes to first time home buyers.
ARE YOU LOOKING TO BUY, SELL, OR RENT IN DOWNTOWN CHICAGO IN 2015? CONTACT GOLD COAST REALTY AT (312) 280-9600 FOR ALL YOUR CHICAGO REAL ESTATE NEEDS