Wednesday, September 29, 2010

Another Look at the North Shore Real Estate Market- Is Now the Time to Buy?

Buying a home in the North Shore Real Estate market, or anywhere for that matter, may seem like risky business amidst our current recession. Since 2005, the market has seen a slow decline which has brought us into our current housing situation. It’s hard to wade through a sea of Real Estate information to get a clear picture if diving into a North Shore home purchase is the right choice.

I could go on about Chicago’s beautiful North Shore. The great communities, excellent school systems, close proximity to a world metropolis, scenic landscapes, stunning homes and having everything you need right at your fingertips are just a few of the things that contribute to the North Shore’s appeal. But, are all of these factors enough to make you or other buyers decide to start your North Shore home search? A recent article by Karl E. Case from The New York Times highlights a few key reasons why now is the ideal time to buy!

“For people with a realistic version of the American dream, buying a house now can make a lot of sense.. Think of it as an investment. The return on that investment comes in two forms. First, you live in the house and so it provides you with a real flow of valuable services. The second part of the yield on investment is the capital gain you receive if the home appreciates and you sell. Gains are excluded from taxation if the property is a primary residence and the gain is less than $250,000 for a single filer or $500,000 for a married couple filing jointly.

Four years ago, the monthly payment on a $300,000 house with 20% down and a mortgage rate of about 6.6% was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20% down would carry a rate of about 4.2% and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.

While demographic trends are uncertain, one important reason for the recent downturn is clear: The steady drip of bad news about the economy has sapped the confidence of buyers, sellers and lenders. And there is no understating the importance of expectations and confidence in this industry. The housing market has never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again.” View the full article on The New York Times website.

If you have been thinking about beginning your North Shore home search, but still have questions regarding the market; let me know! I’ve been involved with the North Shore Real Estate Market for years and can direct you in finding the best neighborhood and home to fit your needs and lifestyle. Buying a home in Chicago’s North Shore can be a stress free and smooth process, and I would be more than happy to guide you each step of the way!

Janie Bress
Your North Shore Real Estate Expert

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