According to the latest report from the Illinois Association of Realtors ®, homes sales in the City of Chicago were up 49.7% in March of 2010 compared to March of 2009.  For the Chicago Metropolitan area, home sales were up 45.4%, which is the ninth consecutive monthly increase. For the entire State of Illinois, home sales were up a very strong 32.8%.

So the housing market continues to improve. Many buyers took advantage of the tax credit. This tax credit officially ended at the end of April. So April's numbers should come in strong as well. The big question is, how will sales be without the tax credit?

I personally believe the market will continue to improve. Why? One reason is the job market is stabilizing. Last week the U.S. Department of Labor reported nonfarm payrolls rose by 290,000. That's the most in 4 years. Job gains occurred in manufacturing, professional and business services, health care, and leisure and hospitality. As people feel more secure with their jobs, they are more likely to feel comfortable getting into the market to buy a home.

Another reason I believe the housing market will continue to rebound is that in many markets, such as the Chicago Metropolitan area, home prices are very reasonably priced. It is much cheaper at this point to buy an existing home than it is to buy land and build a new home. That is an indicator that home prices eventually will go up.

Earlier this week, on May 11th, Bloomberg.com carried a story that home prices gained in 91 U. S. cities. Another very interesting article was published by CnnMoney.com on the same day, that stated that there are not enough homes on the market. Can you believe that? It gave examples of California, where it stated almost all cities have a short supply of single family homes. Although this certainly is not true nationwide, this is another great sign of our housing recovery.

Famous hedge fund manager John Paulson, who predicted US home prices would fall back in 2007, is now predicting home prices will grow 3-5% this year and 8-12% next year. If that comes true, purchasing a home now, would be a very good investment.
 
Is this a good time for you to get into the market? Proceed with caution. Count your cost. The world is ever changing. Work with professionals.


Thought of the day:
Loyal customers become a vocal, unpaid sales force! Are you creating loyal customers in your business?


Till next time, live your life with purpose and passion!

John Santorineos


Remember, whether you are buying or refinancing, our licensed professionals are ready to assist you with securing your next mortgage.

Visit us at www.AboutHomeMortgages.com

Get your Free Interest Rate Quote Now!