The market outlook for 2011 for the Chicago area overall is not rosy. According to Crain's Chicago business, Chicago had the second highest level of home repossessions among all U.S. metropolitan areas in 2010. There was a 20% increase in repossessions from 2009. There was a 16.1% increase in foreclosure filings.
There has been a lot of discussion about the shadow inventory of foreclosures and the number of months that it will take to clear the inventory. The most recent assessment by Standard & Poor's Rating Services reports that the shadow inventory for the Chicago metro area would take 59 months to clear based on fourth quarter 2010 data. This includes the broad definition of foreclosures including those that are 90-plus day delinquencies, properties in the foreclosure cycle and REOs. The increase from earlier estimates is said to be due to the deceleration of the distressed property liquidation rate rather than a rise in overall distressed property levels. In other words, the timeline for properties to complete the foreclosure cycle lengthened.
Buyers have to start buying in order for us to recover. Investor activity is on fire. The average price of bank-owned properties in Cook County is only $79,900 [Source: RealtyStore.com]. If the concern is being qualified to get a loan, speak to an agent who can refer you to a lender that can let you know where you stand and give you some pointers for getting to where you need to be. There is time to get in on the opportunities in this market. Interest rates are below 5%. Some buyers may be able to take advantage of down payment assistance programs. FHA downpayment levels are still only 3.5%. Forget the doom and gloom. You can't time the housing market any more than you can the stock market. Different areas will recover at different times. Interest rates won't stay this low forever. Prices may decline a little more but they are at levels in some areas not seen for a decade. What are you waiting for?
Millie C Lumpkin, SFR
Realtor
Century 21 Pro-Team
Phone: (708) 213-6141
Email: mlumpkin@c21proteam.com
Website: http://RealEstateSolutions4Today.com
"Forget the Doom and Gloom. It's a Great Time to Buy"
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