Schaumburg is a delightful village that boasts beautiful parks, exceptional shopping, and fabulous restaurants. It has a bustling business district, and it is located just 30 miles away from Chicago and 11 miles from O'Hare Airport. If you are looking for homes for sale in Schaumburg, IL, now is the perfect time to find your ideal investment property.
Housing market forecast for Schaumburg 2023
Home values on an upswing
Home values in Schaumburg rose by 8.7% in May 2023. The medium price of a three-bedroom in 2022 was $325,000. In May this year, the price increased by 3.1% to $335,000.
Falling interest rates
All year, the interest rates have hovered around 6% to 7%. As of the first week of June 2023, the
average rate for a 30-year fixed loan for a home fell by 14 basis points to 7.03%. The rate to refinance to a 15-year fixed rate was also down by 23 basis points to 6.52%.
It looks good for investors
The state’s data shows that
owner-occupied and vacant homes have decreased slightly from 2010 to 2020. At the same time, rental units have increased. In 2010, 67.3% of homes were owner-occupied, 32.7% were renter-occupied, and 6.7% were vacant. In 2020, the rate of owner-occupied housing dropped to 63.2%. However, rental units had increased to 36.8%, and vacant homes decreased to 5.4%.
Since Schaumburg is in a
seller’s market, investors may have to negotiate to get a good deal, but there should be a market for renters. Homes are still selling, and the value is increasing in the area, so flipping a house may also be worth the investment.
Increase in residents
There has been an increase of 6.1% in the
population of Schaumburg in the past decade. According to the state, in 2020, 78,723 people were living in the city.
Median home prices
The
median home price in the area was $261,000 in May of this year, up 8.7% from the same time last year. The average cost by the number of bedrooms and the percentage the price rose from 2022 is as follows:
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One bedroom $128,900 and up 7.5%
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Two bedrooms $225,000 and up 13%
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Three bedrooms $335,000 and up 3.1%
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Four bedrooms $440,000 and up 3.5%
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Five or more bedrooms $581,400 and up 20.4%
Cook County market
Schaumburg is in Cook County. It is also experiencing a
seller’s market overall. In May of this year, the median home price in the county was $305,013, down by 0.2% or $599 from last year.
There were 8.3% more homes sold in May of this year than in the previous month of April. Of those, 40% were sold under the list price, 18% at the list price, and 42% over the list price.
Covid-19 and the market
The housing market thrived in many parts of the country during the pandemic. In Cook County, the
home values also increased during that period. A DePaul study found that housing prices increased by 14.7%. In suburban areas like Schaumburg, the values increased by 14.9%.
County foreclosures
Foreclosures have risen nationwide after lifting the moratorium that had been in place during Covid-19. According to one report, the
rate of foreclosures in Cook County is one out of every 312 homes. It ranks 20th out of 1,700 counties looked at nationwide. This news is a bright spot for savvy investors as they can find a foreclosed home at a bargain price.
Is investing a good idea?
Schaumburg, Illinois, has been rated the top place to live in the state by Money magazine, and it continues improving. The town boasts thousands of businesses, including Zurich North America, Paylocity, and Motorola Solutions, attracting new residents. It also has the largest mall in Illinois, the Woodfield Mall, which brings in 30 million visitors a year and makes life in town more convenient for residents.
Investors have many opportunities in Schaumburg, with 68% of buildings being
housing units, 37.4% of which are single-family detached houses, and 45.2% are multi-family units. The village is developing the Woodfield Hub and the 90 North District, which will feature mixed-use neighborhoods with walkable settings, drawing people who want to live close to shopping and dining. These areas are perfect for investors looking to expand their portfolios.
The town plans on investing 217 million dollars in improvements throughout the area. It is adding bicycle paths and improving the infrastructure to enhance life and make living in Schaumburg more attractive to homeowners and renters. While investing does not guarantee quick returns, owning property is a good investment overall, and Schaumburg is ripe with possibilities.
Finances
Before attempting to purchase property, investors may want to check their credit scores and repair them before applying for a loan. Lenders look at the debt-to-income ratio (DTI) too. The DTI should be under 43%. Just search for a DTI calculator to determine the percentage.
Prices
Homes in the village are expensive, and 65% of those sold last month went for
over the listed price, but investors can still make a profit. The average time that homes stay on the market has increased from nine to 16 days this year, providing more time for buyers to find a home. To increase the likelihood of finding a suitable investment property, choosing the right home in the right area and having strong negotiation skills are essential.
Consult a professional
If you are an investor aiming to flip a property or add rental units to your portfolio, seeking guidance from a real estate professional can significantly increase your chances of success. Agents possess extensive knowledge about the area, and unlike the general public, they can access the MLS database, giving them access to most of the homes available for sale. Additionally, they can identify foreclosures faster and are often aware of properties that are yet to be listed but will be made available soon.
Experience the difference
Are you looking for an investment opportunity in the Schaumburg real estate market? Look no further than the
Sarah Leonard Team. This
experienced team of real estate agents has a proven track record of success, having been ranked in the top 1% by the esteemed Wall Street Journal. Led by founder Sarah Leonard, the team is known for its exceptional service and top-notch negotiation skills.
Whether searching for a luxurious estate, a cozy townhome, or something in between, the Sarah Leonard Team can help you find the perfect property. With extensive knowledge of Schaumburg and the surrounding Chicagoland suburbs, they are equipped to assist with all your real estate needs.
Give Sarah Leonard a call today to get started!
