The Housing Market is on the Road to Recovery, But Not for All Homeownersadmin / 0 Comments /
The Chicago-land real estate market has made a notable recovery since the housing crash in 2007. However, a closer look at the types and price point of homes that are in demand among home buyers reveals that smaller, lower priced homes have made the most significant turnaround.
On the other hand, the large homes that popped up at an explosive rate in the early 2000s, which came to be known as “McMansions”, have not recovered at nearly the same rate. In fact, many of the home owners looking to sell their homes, once valued at $2.5 million, are preparing to take a $600,000 loss on their investment. Further, these homes are on the market an average of 155 days before receiving an offer.
According to an article published by the Chicago Tribune by Gail MarksJarvis, the allure of these homes has faded. Many Generation X home owners lost money on the homes they purchased before the housing market crashed and are not financially able to purchase homes in the luxury price range, or are hesitant to make such a large investment in real estate. These large suburban, family-oriented homes do not appeal to a significant portion of millennials or baby boomer home buyers either. To add, home buyers who are in the market for luxury properties prefer to purchase new homes with the most up-to-date decor and amenities.
To read more about the luxury home market in Chicago-land, read the entire article.
Photo Credit: Ray Sawhill