Predicting trends is like predicting the weather, it is a tricky science and sometimes you get it wrong. However, reviewing our stats and data we have identified the top five trends as we create a better market here in Chicago, Illinois.
- It is still a seller’s market.
Temps are hot, but the housing market is hotter. Housing sales in Illinois are at a record high and only look to be growing. Mid-summer this year, more than 10,000 pre-owned single-family homes in Illinois were sold in one month, a RECORD BREAKING year. Real Property Management Chicago Edge knows families are on the hunt for a new place to settle down, and that not every family is in the position to buy. With sales numbers this high in Illinois, it is an excellent time to look to purchase investment rental properties. This also means that there is no reason your property should sit empty.
- Inventory is low.
Permits to build are on the rise, but for the time being, inventory is low across the Illinois market. Illinois’s Real Property Management Chicago Edge foresees this as a temporary advantage and we seek to assist investors to maximize now while the market is in the owner’s favor. As market inventory grows over the coming months, competition could get tough. With proper preparation, rental housing should see few vacancy days.
- Prices are up.
As part of a seller’s market, and with inventory down at the moment, prices have continued to climb and show no signs of stopping. However, that doesn’t mean you actually have a lot of time. Locking renters in at a slightly higher rate while it is comparable to other market rates is a way to get an edge on profit over time.
- Invest Buying is great
Unemployment is down, the economy is up, interest rates are low, and foreign investment in American real estate is high. Mortgage rates are cheaper than the average rent, so Illinois property managers are buckling down to make sure they have a competitive edge against an increasingly appealing option to buy. Choosing the best properties and making those properties attractive to potential tenants gives that needed edge.
- Millennials and Baby Boomers alike, are still looking to rent.
Although the market may favor buying over renting, the effects of the recession on lending are still present. The belt is still tight for young families looking for loans, and for many of them, buying is not an option. Millennials who just graduated college also don’t have the money for a down payment and monthly mortgage payments. And Baby Boomers don’t want to be tied down to mortgages, yard work and replacement costs that come with homeownership; not only that they want the freedom to travel and enjoy their free time. Real Property Management Chicago Edge understands the market demographics and how to cater to these types (and many more) of renters and can help keep your units full.
Keeping these trends in mind will help owners maximize returns by reducing or eliminating vacancies.