As most Realtors today feel, last year was better than 2009, but still a rough year for the real estate market in the Northwest suburbs of Chicagoland. However the interesting story is the expectations of 2011 to be a better year for homeowners, as well as buyers.
For the sellers, they have watched previously double digit devaluation for no fault of their own. They have reviewed listings on line, changed their future plans to accomodate a safer time to make major decisions in their lives. Their hopes and dreams of the glamorous beginning of 2000, where the combination of a great sellers' market, easy money from Wall Street, and an effort by the government to make housing affordable to all, inflated their value to unrealistic expections. When it was happening, the Realtors couldn't believe the double digit inflation of prices! Some of us even explained it as new and improved town renovations, better school reports,...oh, the explanations were amazing in retrospect.
But then we found that these buyers, who rushed to purchase and get in the wonderful investment, found that the inflation died as property values receded. Having little equity, and stretching themselves to the limit caused them undue stress. The stress of making every dollar count for a mortgage payment became too much. Marriages and jobs were lost. Short sales and foreclosures insued and government intervention in a free market happened.
Today, buyers have the enviable position of having wonderful financing and housing prices are extremely affordable rates. Our housing prices are at 2000 levels! Current rates are at 5%, however the reports from the lenders is that the rates will continue to grow until June and the crystal ball of Wells Fargo and Bank of America is that housing prices are going to appreciate for the first time since 2005. Could you read this again? Rates rising and Housing prices means your opportunity to take advantage is now until about June.
My hope is that we continue the stabilization in our economy and jobs are found for the under employed and unemployed. I'm polishing and putting on my rose colored glasses....want to join me?
Jan McNulty, RE/MAX SUBURBAN in Mt Prospect, IL. 847-274-0535
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