Monday, November 03, 2008

NOW MAY BE THE BEST HOME-BUYING MARKET SINCE THE END OF WORLD WAR II

Amid what some experts believe may be the best home-buying market since the end of World War II, Chicago-area house hunters who are bold enough to sign a residential sales contract are beginning to reap hefty financial rewards—often saving tens of thousands of dollars, analysts say.

If you are thinking about purchasing a home or condominium this fall, have down payment cash, job security, a good credit score, and can qualify for a mortgage, “now may be the perfect time to buy,” advises Nicholas S. Gouletas, chairman and CEO of American Invsco.

“The current downturn is not a real estate crisis in the United States. It is a financial crisis,” noted Gouletas, a condo-conversion specialist who has developed, marketed and managed over 45,000 units in more than 100 buildings in 40 markets nationwide since 1969.

“It’s still very much a buyer’s market,” Gouletas said. Although it may take “up to three years” for the Chicago-area housing market to fully rebound, Gouletas expects it to come roaring back.

Resale home sales numbers improved in September as people took advantage of the buyers-market conditions with low interest rates, ample supply, and negotiating room on price, according to Illinois Association of Realtors.

The Chicago-area existing home market is down, but far from dead, reported the latest IAR home sales survey for the Chicago area. Single-family home and condominium sales totaled 6,371 units. While the sales number is 6.2 percent less than the 6,794 home sales in September of 2007, the total is impressive, considering the shape of the economy.

The median home sale price for the Chicago area was $224,000 in September 2008, down 13 percent from $257,500 in September 2007, so there are bargains to be had in the Chicago area. The IAR survey includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties.

“Some downward pressure on prices is expected as we move through the inventory of homes and some would-be buyers and sellers simply wait out uncertainty in the financial markets and economy,” observed Pat Callan, president of the IAR.

Another positive exists for first-time purchasers, who between now and June 30, 2009 are eligible for a new $7,500 tax credit and increased loan limits on FHA-insured mortgages, said Callan.

“The economy has reached proportions that have many analysts suggesting that it is by far the worst since the Second World War,” noted Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

“With the passage of the bailout plan and the international collaborative efforts to address the systemic problems of ailing economies, there is some basis for optimism that a turnaround may be possible in 2009,” said Hewings.