After the 2008 collapse of real estate prices, Illinois and Chicago were among those hit the worst: foreclosures, many homes which were considered ‘deeply underwater’ and a loan-to-value (LTV) of 125 percent or more. In December 2013, the U.S. Home Equity & Underwater Report found Illinois to have 32% of all residential property to be deeply underwater, making it among the top states with the condition. However, the present situation has improved quite a bit.
The headquarters of Motorola Solutions is located in the city Schaumburg –off the northwest of Chicago. So is Woodfield Mall, which is the 11th largest mall in the United States, divisions of IMB, Zurich Insurance Group, and Comcast to name a few. All this leads to a higher employment rate than the U.S average.
With a 10.4 percent rise in home prices in January 2015, the year is off to a good start for Illinois. The median price, i.e. the price lying at the midpoint of all home prices, has been rising statewide in Illinois every month since September 2012. According to Bestplaces.net the statistics show that the homes for sale in Schaumburg IL have a median cost of $193,500, while the average cost of living in Schaumburg is 8.60% higher than the U.S. average, this translates to a higher than average standard of living.
“The strong price surge in the first month of the year shows that even in a traditionally slow time for real estate there’s enormous interest in finding a home to buy,” said Jim Kinney, ABR, CRB, CRS, GRI, president of the Illinois Association of REALTORS® and vice president for luxury sales at Baird & Warner in Chicago.
With families considering other factors such as education for their children and employment before deciding on buying a new home, they can view these as good signs:Schaumburg public schools spend $15,230 per student compared to the U.S. average of $12,435, whereasthe unemployment rate in Schaumburg is 5.50 percent compared to the U.S. average of 6.30 percent. All this can be seen as a direct result of the Illinois Municipal Retirement Fund adding up to $150m (€131.9m) of new investments in real estate. More good news comes from Associated Bank providing a much needed financing for new investments in Illinois.
Another firm eager to get on the boom is Blackstone the real estate private equity giant, who have paid close to $180 million for the Streets of Woodfield, a 713,260-square-foot property adjacent to the Woodfield Mall in Schaumburg. With interest rates near a record low, this is a sign of investors looking for handsome returns on well-located properties. The Blackstone deal is the biggest suburban property deal in the Chicago area, second only to the $196 million KKR paid for the Yorktown Center mall in Lombard in 2012, according to New York-based Real Capital Analytics.
According to Zillow.com there are quite a few options available to investors and those looking for homes for sale in Schaumburg IL, such a 1,100-square-foot condo in Hawthorne, or a 1,872-square-foot townhouse in Westfield. For the current and prospective residents of Schaumburg the future is looking to be a bustling place.