If you’re planning to buy a rehab home, take your time; prices will go higher but slowly. Investments in single-family rental properties have good potential in the next few years, as do investments in housing developments, especially apartments . Mortgages written now have low risk because home prices will go higher, but the risk of job losses is increasing in some manufacturing industries. Investments in the slowly growing retail sector have the best chance in Kendall County and should be avoided in DuPage.
The local economy is a mix of low growth but high wage manufacturing jobs (chemicals, metals, machinery) and higher growth but lower wage jobs in wholesale and retail trade, business services, and healthcare. The slowly shifting income of the workforce will have long-term effects on the real estate market, with less demand for single-family homes and more demand for apartments. Like many other former manufacturing cities, Chicago is becoming a regional hub of services to a large but slowly-growing population.
The population has grown at half the national rate for years, pulling home prices down well below local income levels. Prices were up in the past year but have lots of room on the upside. You can expect increases of 4 percent or so for the next few years. Home prices are a bargain right now but they will stay a bargain, so don’t be pushed into buy too quickly.
Being cautious while buying a home to rehab is key but make sure you are considering these factors while going to purchase a new home for your project.
Prices have been strongest in Lake County….
Read More of this article by Ingo Winzer on Forbes: http://bit.ly/2q7SveL