Hot neighborhoods poised to see growth among modest real estate forecast
Chicago homeowners have been waiting for real estate values to bounce back and homeowners should now be excited to find neighborhoods are poised to see appreciation.
On average, home prices in the Chicago area will climb 6 percent this year. That contrasts with a projected national average of 10 percent. Chicago is far behind cities like Seattle and Denver, where home prices have recovered completely.
Nationally, home prices returned to 2006 levels in 2018, meaning the country’s housing market is back to its pre-crash health. However, home values in the Chicago area remain slightly below where they were before the crash, according to the S&P CoreLogic Case-Shiller home price index.
In 2016, the Chicago area was one of the nation’s worst for homeowners in serious financial pain. About 12.2 percent of homeowners were underwater with their mortgages. This means they owe more on the mortgage than the house is worth. Miami and Las Vegas were hit hard by the crash however now these cities were hotbeds of investor speculation in the housing mania that preceded the crash.
Change in Market
To date those cities that were in financial ruin are now seeing an overwhelming rise in equity and pricing values. Las Vegas is a prime example with home prices rising by 10% with an additional 10% predicted for 2019. However, the Chicago area’s prices are moving slower than other areas. This is a good time for people to still buy before the local market catches up to other cities.
Based on recent trends, Geoffrey Hewings predicts it will take another year for Chicago-area homes to reach their peak values again. As the director of the Regional Economics Applications Laboratory, he analyzes the area’s home sales and prices each month.
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