According to the Midwest Real Estate Data, MRED, the amount of homes available for sale has dropped between December of 2010 and December 2012.
It is true that there are areas in the city where most of the properties have been sold, which creates less options, multiple offers per properties, and results in increasing prices.
It is also true that there are areas of Chicago which will continue at diminished values due to the number of distressed properties in that area.
Russ Bergeron, CEO of MRED, is anticipating appreciation throughout 2013. From a homeowner’s perspective I can see how this is good news because my property will eventually regain fair market value.
However, let’s entertain a different perspective. The inventory has dropped because banks are still holding to a lot of properties; yes, many have been snatched up by investors, private institutions, and now a cook county land bank. If our local government can’t manage their own finances, pensions, and taxes, a whole other conversation, what makes us think they can manage, restore and repopulate thousands of homes?
The banks are accepting more short sales than ever right now, so that definitely helps in reducing foreclosures, and the process is more efficient now…provided your Realtor is competent.
So here is your dose of reality, from Realty Trac, there more than 800 properties that went into pre-foreclosure just this month so far, in Chicago. In a matter of weeks what we will see here in Chicago is a slew of backlogged foreclosures hit the market again, that the banks held on to. The rest will come from people who were never given the opportunity to short sell because they didn’t reach out for help, or unfortunatley, a realtor didn’t properly explain all the options to these homeowners and why short selling is the BETTER option.
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