Every day I get asked the following question ” How is the Real Estate Market?” and then the follow up question is “When do you think it is going to get better?”
These are the two most difficult questions to answer because I do not have a crystal ball and I am not able to predict when the market will get better.
All I can say is the number 1 problem we face in Illinois appears to be the rise in unemployment through out our State.
According to the most recent May figures, the unemployment rate is now 10.1 percent. According to the Department of Employment Security there are now 671,400 unemployed people in Illiniois.
The State of Illinois has lost more jobs that it is creating. In fact 290,800 more people have lost their jobs since the beginning of the recession.
According to a recent Chicago Crains article dated April 9, 2009, Illinois companies plan to cut 2, 486 jobs.
Android Industries, LLC, an engine manufacturer, plans to cut 273 jobs.
AHS Food Company, a soybean processing company, plans to cut 246 jobs.
HSBC Finance Corporation, plans to cut 214 Illinois jobs
Northfield Laboratories announced 69 jobs are being cut.
RR Donnelly, announced 118 jobs are being cut
Motorolla announced 74 jobs are being cut in Libertyville.
As more people loose their jobs there will be a a rippling affect in the Illinois housing market.
People who loose their jobs will be unable to pay their mortgage on their homes and will not be able to refinance their mortgage or modify their loans with their lender.
I predict more home foreclosures and a longer recovery to the Housing Market in Illinois.
;)
;)
Ten per cent unemployment looks pretty good to me. Try 13+...in my county...among the highest in the nation.
Still -- our short sales and REO percentages are lower than in many other places. Go figure.