Market update provided by Mario Greco of the Mario Greco Group, Rubloff Residential Properties, in Chicago, Illinois.
Itâ€™s no surprise that the last four tumultuous weeks on Wall Street have changed the entire landscape of the residential real estate market. Unfortunately, the hysteria surrounding the plummeting stock market has spread to and infected the Chicago housing market.
Simply put, itâ€™s been a whole new (mental) ball game since Sept. 15.
I think itâ€™s important for home sellers to understand how the turmoil on Wall Street has affected the Chicago real estate market. In a word, the uncertainty has caused a paralysis in our local market. The traditional three â€“ or, depending on how you look at it, four â€“ groups of buyers still exist today, as they always have.
The first group is made up of those home buyers who have the cash or credit to buy, but are scared to make a move. The members of this group are sitting on their hands, much like the banks are. The second group is made up of buyers who were on the fence either in desire or ability and are not buying now. They, instead, are waiting to see what happens before they make any move. The third group includes those buyers who couldn’t or didn’t want to buy. Well, they’re still on the sidelines, either by force or by choice. Even the fourth group, the vultures, can’t buy because banks aren’t lending money for most deals, let alone those that are risky.
As a result, deals are slow to materialize and those that already have been struck are being renegotiated or Continue reading this post