March 6th, 2013 categories: Chicago Real Estate News
We’ve written a lot lately about the good news in the Chicago housing market. That doesn’t mean, though, that Chicago’s real estate market doesn’t have its share of problems.
Far from it.
After all, while Chicago housing prices are trending upward, they’re rising more slowly than in most of the rest of the country. Why? Simply put, there are too many distressed homes still on the market in the Chicago area.
According to a recent story by the Chicago Business Journal, foreclosure property sales in the Chicago area rose 31% in 2012 when compared to the previous year.
The story, citing data from RealtyTrac, reported that there were 43,178 foreclosures sold last year in the Chicago area. The average sales price for these properties stood at $130,972, according to RealtyTrac. That’s 3% lower than what foreclosure properties fetched in 2011. It’s also far lower than the median sales price for the Chicago area in 2012.
Chicago Business Journal reported that foreclosure sales represented 31 % of all area home sales in 2012.
There’s a reason why this is such a big deal: Foreclosures bring down the housing values of entire neighborhoods. Look at it like this: If buyers can spend significantly less on a foreclosure, why would they shell out more money to buy a similar market-rate home three doors down?
This often leads sellers to reduce their asking prices in an effort to at least compete with area foreclosures.
The story provides one more reason for Chicago home sellers to work with a professional, licensed REALTOR®. If you’re competing with lower-priced foreclosures, you want to work with a real estate professional who can help you set the right list price and market your home to the deepest possible pool of buyers. Only then will a property have a chance in this market.