The Windy City has largely been overlooked by investors in favour of faster growing population centers farther south, but recently employment growth and years of price drops have helped place Chicago at the top of the best buyers' markets.
A telling statistic is that in May, 48% of Chicago homes sold for less than their previous selling price, according to author of the report Zillow, a real estate listings company that tracks national sales activity.
The rankings also considered sale-to-list price ratios and the number a days a property spent on Zillow.
Zillow’s Home Value Index shows Chicago’s home prices were once as high as $269,000 in June 2006, but sunk as low as $151,000 this past February, down 44%. The Chicago index price has since risen to $157,1000 in May.
Other cities making the Zillow buyer’s market list were Milwaukee, Cleveland, New York, and Philadelphia. Some Canadian investor favorites remained on the list for best markets for buyers, however, including Jacksonville, Fla., and Houston. While Chicago has seen a major price correction, it’s nowhere near the drops seen in some other parts of the country.
Now the markets starting to favour sellers in the U.S. are the ones that favour sellers, says Zillow. The top six sellers’ markets included the California cities of San Jose, San Francisco, Sacramento, and Riverside, along with Las Vegas and Phoenix.
Canadians have lamented the once seemingly unlimited bargains in Arizona are now much harder to come by as investor activity has heated up in the past year.
“It’s refreshing to see some market swinging back in favor of sellers, with asking prices being met and listings spending fewer days on the market,” said Zillow Chief Economist Stan Humphries.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate