Charles McShan with Century 21 Universal. This blog is entitled the Housing Autumn market in Chicago, and how will it affect you? Yes, Fall has arrived in Chicago. My Real Estate Office is located at 7300 N.Western Ave in the West Ridge area city of Chicago. This year of 2020 has bought with it many challenges. The coronavirus pandemic has affected all of us personally one way or another. Thousands of sickness and deaths.Job loss and fears of future layoffs and tax increases. It has been hard to write a post because of stressful things and events happening one after another. This year in Chicago has been stressful. For the whole summer, our beaches have been closed for swimming.
What have the last few months been like?
Downtown Chicago resembles a ghost town due to the virus and the on-going civil unrest. The majority of our museums and significant hotels are still temporary close. Take, for example, the historic Palmer house. When I was in the transportation industry, that was my base of operations. I knew all the bellmen, the doormen, and the security personnel. When I drove past there the other day and saw it darken, my heart went out for all of those displaced workers there and in all the other closed down businesses.
I still cannot get a firm mental grip on the situation at hand going due to the virus and the civil unrest. Forest fires on the west coast, hurricanes in the Gulf and the east coast Quite frankly, This year was a lot to take in.No vacations, no family gatherings; it was like a business decision. Most of us had to write off the year 2020. It is like a bad dream. I have suffered from writing cramps. Family members and friends have died due to the coronavirus. How so I get through it? I read the Bible. At Matthew 6:34, for example, Jesus tells his followers that every day has its problems, and you must get through them and keep moving, keep living, so with those words of wisdom, I have sat down at this modern-day typewriter called a computer, and I am typing out words. Speaking of typewriters, you older people out there remember using those devices. There was no backspace button. What you printed was there. Thank God for modern technology and the reduction of using paper. With that being said, let’s get to where we are now in the fall season of Chicago.
For September, schools are now back in session. The majority of schools are operating online; some are not. The coronavirus is still infecting people and is still causing deaths worldwide. Health clubs have reopened with limitations. Our Chicago Cubs and White Sox have both clinched their division by playing in empty stadiums. Both teams were both eliminated from the playoffs. The Chicago Bears won their first three games ad are now 3-1; who would believe that. Chicago’s nightlife still shuts down around midnight. That is where we are as we are now in October.
Quick Review of the Year.
Now let’s talk about the housing market. Before the coronavirus, the housing market was stagnant. There was low inventory back in 2019, and it carried right into the year 2020. We were told to prepare for the virtue outbreak, and it indeed occurred with tragic results. We talked about it in previous blogs. It carried into the spring and summer, and it is continuing into the Fall. Unemployment is still high, and with municipal budgets short on cash, there is talk of government employees’ layoffs. Real estate contracts are going to closing while at the same time deals are falling through. So whats the rest of the year look like for the housing market?
There are conflicting stories out there. Some say next year; home prices will crash; others say the home price will rise. Right now, Inventory is still low. Some homes, if priced right, are selling in record time. Others that are priced wrong are not selling at all. So if you were sitting on the fence and were thinking about selling your home, now would be a good time to do it. There are buyers out there looking for homes. here is an article mainly for the seller is quite honest and frank. Please click here >https://www.homelight.com/blog/should-i-sell-my-house-now-coronavirus/
There are quite a few urban homebuyers due to the virus who prefer to leave the city to live in the suburbs. For many, that will not occur because once again of the low inventory of homes and if you could switch out and move to the boondocks as they called them, would that work for you. Check out this article >
The future home buyers out there are also going thru challenges. They, too, have saved for their down payment. Some homebuyers have had to spend some of their savings to survive these rough times. Other homebuyers have fared better and have bought the homes of their dreams. On the other hand, due to the coronavirus, what a person could afford to buy in March in September due to rising costs, they no longer get a preapproval. But the interest rates continue to drop. How low can they go? Check out this article below.
The Rental Market!
So we have covered both the buyers and sellers, so what’s left in the housing market? The rental market As I wrote in a previous post, a lot of Chicago renters had big plans for the year 2020. They had saved up money to move from their rental units to another, or they would purchase a home. Then the virus struck, the bottom fell out, the majority became unemployed and had to spend their savings to survive. Now they cannot move even if they wanted to. They’re behind on their rent and other bills. They might be back to work, but they are now in debt and are in limbo. Their landlords are also stuck. They can’t evict them due to government moratoriums. They also cannot pay their bills. For both tenants and landlords, they are in a dilemma. January 1st, 2021, is going to be a day of reckoning.
But you renters, if you are behind in your rental payments, try to catch up. Pay partial costs if you can. Try to stay in good standings with your landlord. You will need them or their references in the future. Always remember to think long term. If you haven’t noticed, rental prices in the Chicagoland areas have risen sharply. A three-bedroom rental for most of the city rents for $1.900 and upwards a month. The days of cheap rent are almost over. Things have changed. Low credit scores are no longer tolerated. A landlord has the right to ask for a credit score of 640 or higher and they are doing it all over the city and suburbs.
That is not is discrimination, as some claimed. Even if you are applying for subsidized housing your credit score must be superb. You will not even be considered in certain parts of the city if your credit score is not 640 or higher. That is the reality of the changing rental market in the Chicagoland area. So if your score is under 600 stop wasting your time applying for rental units because when they say your application fee is non-refundable they mean it. Stay where you are living one more year. Yes, the coronavirus has put many of us in a financial mess. But we got to try and pay our past due bills. Commonwealth Edison the electrical distributor in Illinois has resumed sending out disconnection notices and I am sure the Gas company is not far behind if they are not doing it now.
You do not want to be in your rental unit or home with no lights, heat, or gas when winter comes. When it comes to a credit card debt if you cannot pay the whole bill contact them. See if they will work out a settlement for pennies on a dollar. Your credit score is your DNA. Landlords will look at your financial DNA and pass judgment on your ability to pay your bills based on what you have done the last past year. So if your credit is not in order then please get your credit in order. If you do get your credit in order now, by next year you will be in a better financial situation to rent an apartment or purchase a home. The days of bad credit are almost over! Sure there will always be some dumps out there that will rent to you and your bad credit but do you want your family living in a dump when you can do better. So for your family’s sake, do the right thing.
Add it all up!
So, the Autumn housing market in Chicago. How will it affect you Some people have moved. A lot have not. They are saying what the Chicago Cubs use to say. We will wait until next year. In the meantime, the weather is still reasonable. People are still living there in everyday life. People are out in their yards, cutting their grass, washing their cars, and enjoying themselves. The coronavirus pandemic is still here, the flu season will also be upon us along with the upcoming election time
You got to keep living. You have to endure to the end, as the Bible says. With those thoughts in mind, I will say this. In an average year, the housing market slows down in October. I will think positively and say that October, November, and yes, maybe even December, might for the selling market. After all, if you are a homeowner and have a promotion or you want to leave the cold weather for good and head south to another part of the country, you have to move, so Put that home on the market.
In these last few months, I wrote some books talking about different aspects of the real estate industry. One particular book deals with expired listings and is entitled, “Selling the unsellable home. ” Why didn’t my house sell? This book goes into detail on some of the reasons why your home did not sell. I also have books on how to prepare your home to be sold. There is a book for the home buyer, and yes, there is even a book for sale by the owners out there. My next soon to be published book will deal with married couples who are divorcing and they must sell their homes. For serious inquires I will send you your personal copy. For OUR beloved veterans out there I did not write on the book on veterans I have an expert named Micheal Griffin who works for NRL mortgage and they have an excellent veteran loan package. If you are looking to purchase a home please look at the flyer at the conclusion of this blog and pass that any information to any veteran that you know. Thank you in advance for that favor.
Yes, in conclusion, the Autumn housing market is on, I am in the West Ridge /Rogers Park area of the city of Chicago. The northern suburbs are at my borders. When you need me to help you buy rent or sell, I will be here for you. People do move in November and December. If those are your plans, let me get to work for you. Thank you for reading this post. Continue to practice social distancing, wear your mask, and we will see you on the other side. May God be with you all
For you veterans out there looking to buy a home please click here.VA flyer_Charles McShan (1)