Archive for the 'Housing Market' Category
Does new research report oversell housing recovery?
April 3rd, 2012 categories: Chicago Info/News, Economic Recovery, For Sellers, Housing Market
Is a new report from the Urban Land Institute on the nation’s housing too optimistic? That’s the debate.
According to a recent story by the Wall Street Journal, the Urban Land Institute in late March released a report that details several encouraging trends in both residential and commercial real estate.
For instance, the survey predicted that the demand for new homes will finally start to rise again. According to the Urban Land Institute, single-family housing starts should jump from 428,600 in 2011 to an estimated 800,000 in 2014.
Even more encouraging for home sellers is this prediction: The Urban Land Institute says that home prices may start to rise again in 2013. And three years after that, the institute predicts, housing prices will have risen by 3.5 percent.
However, the Urban Land Institute report is not completely positive. Researchers with the institute say that consumers should not expect a housing recovery that in any way resembles the residential housing boom, when the country saw soaring home prices. The coming recovery will be a more modest one. But, the researchers predict, it will also be a steadier one.
The recovery will also not be universal. Researchers predicted that certain markets that were particularly hit hard, places like Las Vegas and parts of South Florida, will trail behind healthier areas for many more years when it comes to housing prices.
Even with the caution thrown in, critics have complained that the Urban Land Institute report is too optimistic. The Wall Street Journal story quotes Kenneth Rosen, chairman of California’s Rosen Consulting Group, as saying that it stretches belief to imagine that new single-family home starts will nearly double by 2014.
Who’s right? I’d love to say that the folks at the Urban Land Institute are in the right. But it’s far too early to say. I’ve learned that today’s housing market is one of ups and downs. We’ll just have to wait to see if home prices actually do start to rise in 2013.
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Lost Your Home To Foreclosure In Chicago? You Might Be Owed Money
April 2nd, 2012 categories: Chicago Real Estate News, Economic Recovery, For Homeowners, For Sellers, Foreclosures, Housing Market
Some former Chicago homeowners who lost their residences to foreclosure may be due some money from Cook County, according to a recent story by NBC 5.
The Cook County Clerk of the Circuit Court currently holds a pot of about $16 million in surplus funds created after foreclosed homes were re-sold. Those foreclosed homeowners who owed less on their mortgage loans than what these homes were sold for will receive the extra funds.
Of course, not everyone is owed a big payday. Dorothy Brown, clerk of the circuit court, told NBC 5 that one homeowner is owed just 13 cents. Of course, Brown also said that another homeowner is due $400,000.
The problem, though, is tracking down all of the former Chicago homeowners who are owed money. Many of these owners don’t realize that they are owed the money. Many who have suffered through the foreclosure process don’t leave forwarding addresses.
There is a way for Chicago residents who’ve gone through foreclosure to quickly determine if they are owed funds. They simply have to log onto the Cook County Clerk of the Circuit Court Website and enter their last names, first initials and phone numbers.
Brown told NBC 5 that she wanted to set up the Web site to make life at least a bit easier for those who have lost their residences to foreclosure. After all, these families have already been through an extraordinary amount of stress. Maybe the money they are owed can help at least a bit. Many homeowners who have lost their residences to foreclosure are also saddled with large amounts of credit-card debt and other unpaid bills. Every little bit of extra money, especially in today’s challenging economy, can help.
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Magazine Survey Offers More Proof: Chicago Is Good For Business
March 9th, 2012 categories: Chicago Info/News, Chicago Real Estate News, Economic Recovery, Housing Market
It’s easy to focus on the negatives when you’re living in Illinois. After all, the state — along with the city of Chicago — is known for its corruption. Our last two governors have been sentenced to jail time, Chicago aldermen are constantly caught up in corruption probes and nepotism seems to be the order of the day when it comes to hiring throughout the state.
But there is good news, too. And sometimes it’s too easy to overlook it.
For instance, Site Selection Magazine recently brought some good news to anyone who wants to see Illinois and Chicago shake their way out of their economic doldrums. According to the magazine, Chicago ranked second among metropolitan areas and Illinois seventh among states in the number of new and expanded corporate facilities that they saw in 2011.
This is good news. When new corporations come to the state or city, or when existing ones significantly expand their current facilities, that pumps new dollars into the local economy. And that’s one of the keys to putting people back to work.
It’s obvious how this helps the Chicago and state housing markets. When the economy is stronger and more people are working, residents are more likely to make the significant investment involved in purchasing a home. If you’re trying to sell a Chicago home, then — or even if you’re thinking of putting your home on the market in the next couple of years — you should be thrilled with Site Selection’s Chicago and Illinois rankings.
I’ve long maintained that Chicago offers a lot to corporations seeking new homes. We boast a great location near the center of the country, and we’re supported by a strong transportation system of rail and roads. At the same time, employees will enjoy living in Chicago. The city offers a great mix of restaurants, shops, theaters, parks and night life. And the housing stock here is strong, with corporate employees able to find everything from luxury mansions to quaint Chicago bungalows.
So next time the news of a convicted Chicago alderman gets you down, think back to Site Selection’s sky-high ranking of Chicago. our city is still strong, even in this current economic downturn. That’s good news for home sellers across the region.
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REALTORS® Survey: Local Residents Still Consider Housing Part Of The American Dream
March 7th, 2012 categories: Chicago Info/News, Economic Recovery, For Buyers, For Homeowners, Housing Market
Housing values are down. Foreclosures are up. A growing number of Chicago-area homeowners are underwater on their mortgage loans, owing more on these loans than what their homes are worth.
You’d think that this combination would sour Illinois residents on the benefits of owning a home. Surprisingly, though, the latest survey by the Illinois Association of REALTORS® shows that state residents still believe that owning a home is an important part of the American dream.
According to the survey of Illinois residents, 75 percent of respondents said that buying a home remains a sounder long-term financial investment than does sinking their money in the stock market.
The survey, of 600 homeowners and renters in the state, also found that 54 percent of respondents said that banks should enact stricter requirements for passing out mortgage dollars. A total of 55 percent of respondents said that the government should make assistance available to help prevent homeowners from losing their residences. Finally, 61 percent of respondents said that owning a home is a better value than renting an apartment.
The poll did find, though, that Illinois residents are realistic about the state of the housing market in Chicago and the rest of the state. A total of 34 percent of respondents said that they thought housing prices would increase a lot or a little in the next five years, while 41 percent said they thought prices would remain the same during this period. An additional 19 percent said that they thought home prices would fall a little or a lot in the next five years.
The survey results offer more evidence that owning a home remains an important goal of most local residents. After all, if the REALTORS® poll shows support for housing that is this strong in such a challenging economy, imagine how many respondents would identify housing as an important financial step if the economy was strong.
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Housing Foreclosures Still Rising In Illinois
February 22nd, 2012 categories: Chicago Real Estate News, Economic Recovery, For Buyers, For Homeowners, For Sellers, Foreclosures, Housing Market
In unfortunate news, the number of housing foreclosures throughout the state rose 14 percent last month. In fact, only six states had higher foreclosure rates during the month.
According to a report by RealtyTrac, the online foreclosure service, Illinois saw 14,349 foreclosure filings in January of this year, an increase of 14 percent when compared to December of 2011. This means that one in every 369 housing units in the state was in some point of the foreclosure process during the month, according to a feature story by the Associated Press.
It’s important to note that foreclosures as defined by RealtyTrac don’t mean that homeowners have already lost their residences. It just means that homes are at some point in the foreclosure process, a process that could include default notices being sent by banks, auction-sale notices being sent on properties and bank repossessions.
The January foreclosure rate in Illinois was also up 9 percent when compared to the same month one year earlier.
Illinois residents shouldn’t expect foreclosure numbers to fall any time soon, either. According to the Associated Press story, the number of housing foreclosures across the country is expected to rise now that attorneys general in 49 states have reached an historic settlement with five of the country’s biggest mortgage lenders. This settlement lays out foreclosure guidelines that could give banks the confidence to pursue foreclosures more aggressively.
About the only good news for Illinois homeowners was the fact that six other states had higher foreclosure rates in the month. Nevada in January continued to have the highest foreclosure rate in the country. Coming next were Arizona, California, Florida, Georgia and Michigan.
Illinois came next, to rank seventh in the country in the number of foreclosure notices filed in January.
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