Chicago prices have now dropped 20.6% off their highs
Chicago prices have now fallen 20.6% off their highs! Definitely will be some more opportunities out there this spring/summer. I have seen inventory drastically up since the holidays but have also had many buyers come back in the game over even just the last few weeks so not sure how far will really fall with so much capital out there chasing these deals (including you all haha). In the markets I focus on northside and nicer parts of south side (mckinley park/bridgeport/brighton park) market prices on 2-4 units seem to have fallen in the 10-15% range with Brighton Park multi units actually held almost same as before rates rose but that market was drastically increasing prior and rents are now about 10% higher there then a year ago. I am guessing higher end single family/condos and properties in higher crime areas may have fallen much further which brings the average to 20.6%. Either way will be an interesting year! I am not waiting and buying any deals that fit my criteria.
As for loan options I have reached out to many local lenders and rates are down significantly from their highs. The best so far I have found all from local banks mainly portfolio type products....
5.75% 20% down on 2 units owner occupant with 1 point on a fixed 30. Same rate but 25% down for 3/4 units 1 point.
5.625% 25% down owner occupant 2-4 units with a 5 year ARM and 1 point. Needs to be higher loan amounts not small deals.
6.0% non owner occupant on 2-4 units with a 5 year balloon. 5.875% on a 3 year balloon.
5.875% 5+ units 5 year ARM with 1 point
7% owner occupant 2-4 units at 10% down. Was 6.5% a few weeks ago so will see what is at next week. Closed one with them in past month.
