The Report for Months Supply of Distressed Property is out. First, let me remind you that Illinois has been regarded as the “financial state” and that being we were one of the last to cut back on the “no down payment” financing. The other issue was that Chicago had a lot of condominiums that were under contract that took about 1.5 years to close and so, we really didn’t “feel” the “ouch” but it was already there. As a result, properties that were under contract kept closing for the new conversion or new construction while the rest of the Chicago Real Estate Market began to slow down on standard sales and short sales and Chicago foreclosures started popping up like crazy.
With that framework in mind, here’s what is being reported:
The East Coast is hit hard with high numbers in Delaware with 35.6 months of distressed property inventory, New Jersey with 27.6 months, Connecticut with 24.6 months, Maryland with 22.5 months.
Southern States: Florida with 20.7 months, Georgia with 18.8 months and Alabama 15.5 months.
Midwest: Illinois with 27.1 months, Michigan with 12.5 months, Kentucky with 18 months and Ohio with 13.5. Indiana – nothing is being reported.
West Coast: State of Washington: 17.9 months, Oregon 11.5 months, California 11.6 months, Nevada 11.6 months and while Arizona has 7.1 months, word from my real estate connections is telling me that Phoenix is turning around with multiples.
So, with the monthly amount of Distressed Homes Inventory, here in Chicago, you need to be serious, be staged, have curb appeal, price the property in the market (and stop chasing it!) and finally, have a real estate agent who communicates, understands the market. If you are a serious seller, then you need to work with a serious real estate agent.
If you are thinking about buying or investing, now is the time to get serious. This is a great way to make up for some loss you took on your primary residence and applied some basic principles.
I think it's time we talked.
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