In the Chicagoland area, and throughout the state of Illinois, the citizens are slowly getting back into “business as usual” in the midst of COVID-19 precautions. However, as many other states haven’t been as slow to reopen, they are seeing resurgences in the coronavirus and are reinstating some, if not all, of their quarantine rules. So, the question is, how will the economy and housing market be affected in the state of Illinois and the rest of the country? Is now still a good time to invest in real estate?
According to chicagoagentmagazine.com, the Chicago market, among eight others including Seattle, Las Vegas, Los Angeles, and Rochester NY as well as Boston, Denver, and San Francisco have been showing signs of recovery. Many areas that are known for technical job opportunities, such as these, have been rebounding more quickly because many employees are able to work remotely and have continued to collect their normal salaries. This coupled with, perhaps, a newfound dislike of their residences (new needs for more home office space or different roommates), and record low-interest rates on home loans have created a renewed housing market.
This is good news for sellers, but not necessarily for buyers as there is a lot of competition for the market’s relatively low inventory. If you are looking for a good deal, waiting might be the key as many homes might enter into foreclosures and short sales in the coming months due to job losses and cutbacks.
If you are ready to invest ASAP, don’t be in a hurry to make a quick profit, but consider a more long-term option. With historically low-interest rates, monthly mortgage payments on properties will be much more affordable than before. However, it may still take some time for the market to stabilize and you may see your property value dip before trending upwards. As with any investment, there are potential risks involved, so it’s important to prepare yourself financially (and mentally) for ups and downs.
In order to mitigate the fluctuations of an uncertain real estate market, consider your investment: perhaps instead of buying a property to renovate and flip for a modest profit, you may want to invest in a property with rental potential. Even if the housing market dips, the rental markets remain steady during recessions since many can no longer afford to purchase a home.
Another option is to invest in a home in an up-and-coming location. Not only will you get the low-interest rates, but you will also have the advantage of securing a lower housing price with less competition since the location is not yet a hot area. Of course, this is also not without its risks. For example, the up-and-coming neighborhood may take longer than anticipated for the property values to rise, or perhaps the prices may not rise at all. There is much more potential for profit, however.
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