Bad News on the Radio Waves

There was no way to avoid the bad housing and financial news last week, at least not if you owned a radio. Every time I flipped on a radio news or talk show, I stumbled across one of two stories: The first dealt with the financial troubles of Freddie Mac and Fannie Mae, the two largest mortgage providers in the country. The second focused on the spectacular failure of IndyMac Bank, the 32nd bank failure since 2000.

Real Estate RadioIt’s no wonder that members of the home-buying public are hesitant to jump back into the residential market. It’s not the media’s fault, of course, that the housing industry is suffering. But it’s human nature to let the blanket coverage of bank failures, mortgage crises and falling housing prices sour both buyers and sellers.

The problem is – and I preach this on a near-daily basis – is that buyers and sellers in Chicago still enjoy a healthy and strong residential market. It’s just hard for us to realize this with the constant barrage of negative housing-industry stories. Yes, housing prices in Chicago aren’t rising as quickly as they did during the 2001-2006 residential boom. But that boom featured unrealistic housing appreciation.

There was no way for any market, in any part of the country, to continue that kind of price growth. But prices here have held steady and have even risen in some of the city’s most desirable neighborhoods. Homeowners here should still view their residences as solid investments. So don’t let all the national gloom-and-doom reporting scare you away from the Chicago market. The housing business here is healthy.