Jan
03

Move-Up Buyers Influence Real Estate for Sale in Chicago

January 03, 2013

Although new home sales traditionally slow down during November and December, real estate for sale in Chicago has been bucking this trend. One of the main reasons behind this change is that move-up buyers are beginning to return to the market. Move-up buyers are defined as those who already own a home, but are on the hunt for a new residence that is much larger or in a more desirable location

“Today’s move-up buyers are purchasing bigger and better homes because it is often less expensive to do that than remodel their current home,” said Laura Ortoleva, media spokesperson for the RE/MAX Northern Illinois real estate network.

These buyers are scoping out new homes with a variety of price tags, but the most active price point is the $250,000 to $550,000 range, according to RE/MAX. Move-up sales activity in this range currently accounts for 25 percent of all home sales.

Remodeling a home comes with a variety of challenges, and homeowners would much rather spend $60 or $80 per square foot instead of spending $120 per square foot to build onto their existing home.

Low mortgage rates combined with increased buyer optimism are also boosting real estate sales. According to a recent survey by Crain’s, more than one-third of Illinois residents feel that the Illinois and Chicago real estate markets are in a state of recovery. Some buyers also assume that it’s a smart choice to purchase a home while rates are still low, as opposed to waiting until later in 2013.

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Jessica Thom

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