Chicago Real Estate Blog

It's All About the Micro-Market

The media tends to speak in terms of national numbers and regional trends when it comes to real estate news. Unfortunately, such broad interpretations of the housing market can grossly underestimate how well specific areas are doing -- such as our hometown of Chicago, which has seen home price increases in 70% of its neighborhoods in the past two years. That's why it is important to look at the "micro-market" to get a true gauge of current home values and sales in a particular spot.

When you hear reports of declining prices and sales volume in the Midwest, don't forget the region includes places like Michigan, which has some of the worst depreciation in the U.S. Negative statistics from Detroit can overshadow positive growth in Chicago and lead to serious misconceptions about the market in your area. For the most accurate rundown, get comparative value figures for similar homes in the vicinity of where you are looking to buy or sell. A real estate agent can help you obtain this information and understand what it means for the residential property in your neighborhood. Basically, the comp stats give you an idea of what price points and what types of homes are selling in a defined area.

 Everything from price to number of days on the market can help determine the health of a micro-market. The key is to narrow the scope and take all factors into consideration. Even Chicago is too big a measure. Take it down to a single neighborhood or a few-block radius within a neighborhood. Then, you will really get a feel for how real estate in that part of town is doing. A few Chicago communities with impressive appreciation are the Loop, Lincoln Park, Douglas, Edgewater, West Rogers Park, Logan Square and Lincoln Square. 

Posted at 09:05AM Apr 29, 2008 by Kate Hoffman in General  |  Comments[0]