Chicago-area home values have taken a hit. Among the country’s 20 largest cities homes around Chicago took the second largest fall from the year before. Atlanta took first place with a 7.9% drop, but Chicago was not far behind with 7.6% from November 2009. Home prices in this area have been frozen for the past year at 2002 levels, but this isn’t helping the real estate market much.
There was a glimmer of hope for real estate agents in December when hesitant buyers took the plunge during an uptick in interest rates, but that surge in sales has settled once again. Factors like uncertain buyers, the number of foreclosures, unemployment, and recently increased taxes are still affecting the market.
Illinois residents have recently had to contend with an increase in income tax, which isn’t lightening any financial burdens. The fact that the unemployment rate is above 9% also factors into the lag in the real estate market. People without jobs aren’t motivated to buy homes. It may seem like foreclosures would stimulate the market since the prices are so low, but that isn’t the case. These super low prices bring down the potential sale prices of homes around them, and also lend to a decline in buyer optimism concerning real estate.
Hopefully the 2011 market will see some improvement with the recent upswing in the economy. Learn how you can save thousands of dollars when you buy your next home with CONDODOMAIN!
Check out ChicagoMag for another take on this real estate dilemma.