As someone who makes his living selling real estate, I like to keep up with our city’s economic fortunes. After all, when Chicago’s economy is humming along, more people think about buying and selling homes. When it’s not? That means I have to work just as closely with my clients to make sure they are taking all the steps necessary to either sell their homes for fair prices or buy their ideal homes without overpaying.
The Nov. 13 edition of the Chicago Sun-Times, then, did little to make my morning. There on the front page, in a big, bold headline, was the news from Mayor Daley that local corporations are expecting “huge layoffs” to hit our city very soon. You can read the grim news here.
What does this mean for Chicago homebuyers and sellers? It means that more residents of our city are going to be facing uncertain financial times. More are going to be worrying about losing their homes and meeting their mortgage payments.
For buyers, it may mean even more homes on the market for amazing prices. During this real estate slump, buyers have benefited. They are now able, even in some of Chicago’s top neighborhoods, to get more home for their money. That isn’t going to change. Housing affordability might even improve a bit.
For sellers, the news isn’t as good. Many homeowners will be forced to sell their homes. No one wants to be in this situation. But if you are, it’s imperative that you work with a skilled, savvy REALTOR®, one who knows your neighborhood and the best price to attach to your residence. Such a REALTOR® can get you a fair sale in the least amount of time possible.
This has been a challenging time, not just in Chicago but across the nation. I still maintain that we’re fortunate to live and work in the city. The real estate crash has been far more serious in places like California, Florida and Nevada. While housing prices here have dipped in some neighborhoods, there are other neighborhoods, such as Lincoln Park, the Gold Coast and Lincoln Square, where housing prices have either remained solid or have actually risen. The city also benefits from a diverse economy. It’s not dependant on one industry, but on many. That helps during an economic slowdown.
There may also be an Obama effect. A new administration might be willing to try new ideas to resolve our country’s housing and economic slumps. And you can’t discount the sense of excitement that Obama’s historic election has brought to many in this country. It may be symbolic, but when people are optimistic about the future, they are more willing to invest in items such as housing.
Perhaps the most important thing to keep in mind during this economic slump is to remember that we will get through this time. The same edition of the Sun-Times had an excellent column by writer Mark Brown. He wrote about all the recessions of his lifetime, seven in all. Despite that, the column wasn’t depressing at all. The point was that he and his family, not to mention the country, had survived all of them. We’ll survive this one, too.
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