I was surprised to read an article about some of the negative state of affairs happening in Illinois regarding wages and income levels. Although our employment status is showing moderate growth, there has been a continuing decrease in higher paying jobs with the usual perks and benefits. That might not affect most of us, but there has also been a decrease in median income in Illinois. In fact, it has fallen 12% since 1999! On a positive note, diversity in the work force has increased.
I think we can all understand how this can affect the real estate market. Have you ever driven through another new upscale subdivision being built and wonder how so many people can afford these kinds of homes? If things continue as they are, those types of homes will become difficult to sell. New construction might focus away from high end subdivisions and shift to more moderately priced homes.
The problem with that is the fact that many builders simply don’t make enough money on lower priced homes and that is why they continue building upsale communities. I guess if they want to continue building, and the market shifts forces because of this economic news, builders will simply have to adjust; as we all will have to do.
Some first-time buyers don’t think they earn enough to purchase a home. With today’s low rates and prices, you might be surprised. Check out our Mortgage Calculator to see if you’d be comfortable with a mortgage payment.