Many smart people have told me through the years that contrarians make money by buying in bad markets.  As it stands right now, those that are currently purchasing real estate are definitely in this class.  I think a lot  of smart people are buying right now; however, I don’t feel that many of these people are first time buyers.

Chicago first time home buyers please note that you should not be scared of this real estate market.  Why do I say this?  Prices have dropped overall, but many local experts feel the bottom is here so lock in a great price by buying now.  Chicago landlords are raising rents $100 to $300 per unit per month making renting much more expensive.  Further the U.S. government is offering first time buyers a $7,500 credit towards your next Federal tax bill.  This benefit won’t be extended forever.

The bottom line is to challenge yourself to consider buying now by being a contrarian.  Buying when everybody else is buying tends to be a losing proposition.