Federal Tax Credit Driving A Chicago Real Estate Bubble?

Low interest rates, low prices and free government money seemed to have helped assist a real estate transaction-boom in the Chicagoland area.  Chicago real estate sold at rates not seen in three Octobers (2006 was the last time) with 7,286 homes sold last month.  Not as good as July 2009 when almost 7,500 units sold but still a welcome improvement.  Compared to 2008, sales of homes rose 33.3% percent.

Nationally, existing-home sales rose 23.5% in October, to a seasonally adjusted rate of 6.1 million units, the highest sales activity since February 2007, the National Association of Realtors reported. Sales in the Midwest were 28.8%  ahead of a year ago. The supply of homes nationally is at its lowest level in more than 2 1/2 years.

First-time buyers are being courted heavily in the 2nd half of 2009 and why wouldn’t a first-timer not take the plunge with the current market conditions if he/she felt secure with their employment situation?  On the fence still?  The U.S. Department of Housing has a list of advice for first-time home buyers that helps you make that determination of whether you can afford a home, finance and maintain a home with your current income.

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