Chicago's Multifamily Market on Fire in 2012

The Multifamily income property market is surging in 2012. Here are five reasons behind the recent uptick and quick move in the market.

#1: Buyer Demand
Current demand for multifamily properties is at a 4 year high. Potential for solid returns has led seasoned and new investors alike into the market, creating a frenzy of buying.

#2: Inventory & Supply
Inventory of quality properties for sale is at a post bubble low.  Many sellers are receiving multiple bids & selling for top dollar.  I expect supply to catch up with demand within 6-12 months, making this the ideal time to sell.

#3: Interest Rates
Record low interest rates and borrowing costs are spurring a lot of activity.  Investors are eager to place cash in real estate investments before the cost of borrowing goes up.

#4: Cash Buyers

Demand for residential rental units is near all time highs.  Higher gross rents + lower vacancy rates = increased profits.  Cash buyers seeking stable returns are flooding the market.

#5: Owner Occupy Buyers

Extremely low interest rates for live-in owners along with supplemental rental income makes buying 2-4 unit buildings irresistible to savvy buyers.

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