The value of homes in the Chicago metropolitan area is forecast to fall 7.1 percent this year from 2009, to a cumulative $625.8 billion, according to a forecast issued today by real-estate web site Zillow. The projected loss of $48 billion in home values this year would be a better showing than the $66.7 billion loss in 2009 in the Chicago market, but a local real-estate agent says he believes homeowners will see values go down another 2 to 3 percent in 2011 due to the high numbers of foreclosures and short sales.
The local numbers are part of a nationwide report predicting that American homes will be worth $1.7 trillion less this year than they were worth in 2009. If true, the drop would be 63 percent bigger than a $1 trillion decline in 2009, and bring the total value lost since the market peak in 2006 to $9 trillion, according to the Zillow report.
“When home values were appreciating from 2003 to 2005 and in some cases, 2006, subprime mortgages became popular and people thought their homes would continue to increase in value,” said Zillow spokeswoman Katie Curnutte. “The rate was unsustainable, even in light of government interventions like the homebuyer tax credit that helped buoy the market in the second half of 2009 and the first half of this year.”
Jon Millikin, a real-estate agent with Jameson Real Estate in Chicago, said he saw homeowners in Schaumburg lose 35 percent to 40 percent of their homes’ value because they bought at the market peak when appraisals and mortgages artificially inflated home values.
“These homes are returning to fair-market value,” he said.
The latest data on home value for the Chicago market, released in October, showed that the median home value had declined 8 percent from October 2009, to $184,800. That was worse than the national decline of 5 percent, according to Zillow statistics.
Millikin said he believes that Chicago-area home values will drop again in 2011 because the market continues to correct itself. Millikin said the prospects for increased foreclosures and short sales could jump dramatically if Congress votes to eliminate the home-mortgage interest deduction to help balance the federal budget.
“That would cripple the market. People would start handing the keys back over to the banks,” he said.
New York City is expected to suffer the biggest decline in home value this year, at an estimated $103.7 billion, according to the Zillow report.
From wonderful to wrecked, Chicago condos can come in all shapes, sizes, and conditions. And like everything, it’s important to do a little digging before you make a commitment. This is especially true for properties just out of foreclosure. In Chicago, foreclosure condos have risen dramatically since the real estate market imploded nearly two years ago.
While this has created some great deals for some, buyer beware: the foreclosed properties out on the market today have also created an equal amount of pitfalls for those looking to buy in Chicago. Foreclosure condos carry more baggage than the average property, which can make this niche in the real estate market especially hard to navigate. Vandalism and neglect aren’t uncommon among Chicago foreclosure condos and it’s important to prepare yourself both economically and emotionally before investing into a property.
Before you invest, you need to know which Chicago foreclosure condos are worth buying and which ones aren’t; these tips should help make your decision a little easier. Continue Reading…
Recently, a top real estate executive predicted that luxury Chicago condos will rebound faster than the market for single family homes for sale. In early June, Jim Kinney, Vice President of the luxury division of Baird & Warner, stated his opinion on the market for
Chicago condos.
Reasons for the Rebound of Luxury Chicago Condos
Kinney thinks condos will be able to recover more quickly due to the fact that downtown won’t welcome any new luxury high rise condo developments for five to ten years. While rental towers and mixed-use developments will go up in the next couple years, any plans for condominium developments, like the Chicago Spire, are on hold.
Continue Reading…
On the northwest side of Chicago, you’ll find a burgeoning residential neighborhood named after a 36-acre park. Portage Park real estate, like the real estate offerings of many northwest Chicago neighborhoods, is surrounded by a neighborhood with a historically Polish influence. It is a favorite of young families looking for Chicago real estate in a quiet residential area with shops, eateries and a tight-knit community to buy into.
A recent article in Chicago Tribune profiled the community as a place where there are long-time residents and an influx of new buyers who are equally pleased with the neighborhood. Continue Reading…
The National Association of Realtors released the May statistics for
Chicago homes for sale this week. The national data isn’t all positive, but the Chicago statistics hint at a possible recovery. Understanding these statistics and how they are trending will help Chicagoans looking to buy Chicago homes find the best deals and understand when to buy.
Chicago Area Home Sales Statistics from May 2010 Continue Reading…
While the inventory of rental condominiums is drying up, apartment rentals are dominant in the downtown Chicago real estate market. Many urban dwellers leery of buying in the current economy, for fear of not being able to sell, have turned toward renting Chicago loop real estate. An accompanying bump in rental inventory is planned for the coming year. Continue Reading…
