With a new year comes continued optimism and confidence in Chicago’s North Suburban real estate market. Growth has been seen througout 2012 and housing recovery is no longer a hush term. 2013 is forecasted to be one of the most productive and best performing real estate years on record. Below are 4 reasons to rejoice and scream out “Happy New Year”:
1. Increase in first-time North Shore home buyers-Recent trends and surveys suggest that growth in demand for North Shore-Chicago homes will likely be driven by first time home buyers. The National Association of Realtors released a survey in November of 2012 that showed 39% of borrowers were first-time property purchasers, up 37% from 2011 figures. See Survey HERE.
2. North Shore Home prices are on the rise-Confidence in the North Shore market has fueled demand in homes. The inventory available often gets snapped up quickly. In addition, new home construction may need to increase to keep up with population growth. A recent report by the National Association of Realtors (NAR) in October of 2012, showed a slight decrease of 22% in the pace of inventory against population growth and overall inventory availability. This equals higher demand, which results in higher prices.
3. Mortgage rates will rise-Although at a historic low for most of 2012, predictions are betting on the only direction the rates can go…UP! Rates are slated to rise 4% in 2013 according to The NAR. Experts agree that there’s no way the low-interest-rate trend will last forever. Getting into the market NOW will have the best benefit and create a North Shore real estate asset as interest rates begin to surge again.
4. Rents will rise with young people entering the North Shore market-Many in their twenties and thirties have been waiting, riding out the economy. As the economy picks up, these same groups will look for apartments and rental property, thereby creating greater demand for the rental market. This means a new motivation for North Shore home seekers that may have been on the fence. In recent years rents have been rising nationally at a pace of about 4% based on a Zillow analysis and confirmation that buying beats renting in most metros including North Shore-Chicago. It's predicted this trend will continue well into 2013. See report HERE.
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