Chicago Housing Market Recovers In 2013
It seems like the Chicago Housing Market has fully recovered after years of sluggish sales. Statistics indicate that Chicago Housing Market values has seen the largest increase in almost 7 years.
2013 Chicagoland Housing Market has been the best since 2005. Unfortunately, the Chicago Area Housing Market is recovering at a slower rate that other geographical parts of the United States. Chicago housing market prices has rose almost 9.8%. Like many parts of the country, the Chicago Area Housing Market has seen a slowdown in purchases and the market prices has stabilized since August of 2013 and has lost the momentum that was triggered earlier this year where homes were selling above list prices and there were multiple offers on the same properties when mortgage rates were in the lower to mid 3.0% range.
Condominiums Really Popular In Chicagoland Area
Condominiums are more popular in Chicago than most other cities in the United States. Condominium prices rose nealy 14% in October compared to a year ago which caught up to market values that were similar back in 2003. Nationwide, residential home values were up north of 13% in October over last year numbers.
Chicago Housing Market Recovery
The Chicago Housing Market has substantially recovered since the real estate and financial meltdown of 2008 due to the easy of mortgage lending and the historical low mortgage rates. Since mortgage rates have jumped over one full percentage point in mid year 2013, housing sales and Chicago area housing market prices has drastically reduced. Foreclosure rates have never been as low since the 2008 housing and banking collapse and things are looking like the Chicago area housing market has stabilized. There are many new mortgage rules and regulations that go into effect in 2014 which includes lowering loan limits for FHA insured mortgage loans as well as the lowering of back end debt to income ratios on conventional mortgage loans to a maximum of a 43% debt to income ratio cap, no matter how much down payment a mortgage loan borrower puts down. New QM, Qualified Mortgage Rules, will make mortgage lending tougher to qualify and many mortgage lenders will most likely implement more internal mortgage lender overlays.
Has The Chicagoland Housing Market Stabilized?
It is difficult to say whether the Chicago Area Housing Market has stabilized. Due to the drastic rise in mortgage rates in mid 2013 and new FHA mortgage regulations, housing sales and prices has substantially slowed down suddenly. There seems there is no end with new mortgage regulations and 2014 will be a sure test on the effects of new mortgage regulations will do to housing sales and housing prices. The uncertainty with the appointment of a new Federal Reserve Board Chairman and whether or not she will cut back on buying mortgage back securities and bond will greatly affect mortgage rates which will affect the Chicago Area Housing Market as well as the real estate market in this country. Stay tuned, we will keep you posted.