312,555 Reasons Why Illinois Residents Should Buy Now

312,555 Reasons Why Illinois Residents Should Buy Now

Do you know where Kankakee, IL, is?

If you don't, allow us to introduce you: Kankakee is a town of about 27,000 residents that sits an hour southwest of Chicago. 

If you are familiar with Kankakee, you're probably also familiar with its controversial title of "Worst City in America" and, as a result, its strange place in pop culture thanks to David Letterman and This American Life

Another fun fact about Kankakee: Realtor.com's most recent Opportunity Cost Report shows that, based on today's dollars, buying a home in Kankakee could help the average purchaser accumulate $312,555 in wealth over the course of a 30-year mortgage. Waiting just one year could cost homeowners more than $16,000.

"So, what does this mean for Chicago?"

While the real estate markets in Kankakee and Chicago are certainly different, this trend in wealth accumulation hits home, wherever that might be. The national average in wealth accumulation is $217,726, with 88% of all markets exceeding $100,000 over the course of a 30-year mortgage beginning this year. According to Realtor.com's Chief Economist, Jonathan Smoke:

"Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of  the projected increase in mortgage rates and continuing price appreciation. The problem is inventory is low, which has many would-be home buyers – especially first timers – standing on the sidelines and missing out on potentially material financial gains."

Because experts project a rise in mortgage rates over the next year, all signs point to buying in 2015. Long term, these low rates mean smaller mortgage payments over the life of the mortgage, while a delay in purchasing could result in a loss that multiples as the years go by. Check out the graph below for a comparison!

"How do I act on these rates?"

This trend is great news for home buyers in Chicago. The Windy City's property values continue to increase in a stable direction, which means that folks in the real estate market should be taking advantage of this year's low mortgage rates and the resources available to them

When you're ready to begin the process of buying a home, drop us a line! The team at Real Group Real Estate would love to help you find a new place to call home.

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