Elections can alter buying patterns

With the election firmly behind us, Terry Banker, president of Coldwell Banker Primus in Oswego, hopes people are now looking forward instead of backward and are ready to start buying houses again.

Historically, home sales always dip when there is a presidential election on the horizon, according to Banker. But this year's dip, due to many other financial factors, was deeper than those experienced by the market during other recent presidential election years.

"But it is a very good time to buy," Banker said. "For those who qualify, there is mortgage money available and interest rates, at six percent, are very good.

"So we just need to see consumer confidence rebound and have people feel good about themselves and their jobs so that they get back into the market," he said.

And for first-time buyers, it is time to dip their toes into the market.

"There are not as many first-time buyers out there looking as there should be," Banker said.

As long as you have stable employment and are credit worthy, Banker said you can find a loan with a down payment of only about 3 percent.

How is the real estate market in Chicago faring?

"Here in Oswego we are running about 15 percent behind where we were at the same time last year. So it will be awhile before we see the kind of sales that we saw two or three years ago.

"But during mid-October, Coldwell Banker held a 10-10-10 promotion where we held a 10-day sale during the 10th month in which we featured homes that had been reduced by 10 percent. That created some excitement and attention in the marketplace and triggered some sales. And currently we are seeing better attendance at the open houses we are holding, although we do hold fewer open houses at this time of year."

How does the Chicago area market compare to the national market?

"The Chicago market is continuing to hold up better than the national market is because we don't have the same price swings that they always seem to see on the East and West coasts."

Banker said the stability of the Midwestern job market and the fact that the Chicago area market didn't see single-year price increases of 45 percent like some other areas of the country saw made the difference.

Do you see more movement in any specific sector of the Chicago area market?

The sales of single-family homes seems to be rebounding more quickly than townhouses and condominiums, Banker said.

How are sales in your market area of Oswego and Yorkville?

"We have seven offices and 245 agents and while development in Oswego has slowed, it is still on the go. Oswego is seeing lots of commercial growth and the population has topped 29,000 and as far as we can tell, Yorkville is next."

What steps need to be taken to help strengthen the Chicago area real estate market?

"I am hoping that they will lower fixed rate mortgages to 4.5 percent and extend the (federal) $7,500 tax credit to all buyers, not just first-time buyers. And it would be great if people didn't have to pay that tax credit back. Those two things together would definitely serve to stimulate the market."