You ask - when will this thing turn around? Well lets consider a few things here.
First how long did it take us to get into this position? Folks it took at least 8 year to get into this position, and some say even longer.
Well it may take us as long to get out of it as it took to get into it.
I do not think that things will stabilize until late 2010 or late 2011.
It will take at least 3 years for things to stabilize.
If you have investments in real estate in Chicago and the greater Chicago land area you must realize that it will take at least 2 or 3 more years for the real estate market to stabilize.
Let look at it! Inflation is at a 27 year high, while personal income is down 1.
6%.
Unemployment is 9.
5%, housing prices are decreasing over most of the country, foreclosures are very high and expected to climb even higher - the second wave of ARM's are expected to hit very soon.
Defaults on commercial mortgages are increasing, the stock market is not doing well.
Pension Plans are taking a heavy hit, many folks have experienced over 30% plus loss of their pension plan funds and are worried about their future.
Even inflation is creeping up and bothersome - gas prices are going up, food prices are going up.
Banks have more properties on their hands then they can handle because of Bank REO's and foreclosures.
Real estate investors are buying Bank REO's and foreclosures and sell them at wholesale prices for profits.
It is however still difficult for the average wage earner to buy a house today because of the credit crunch.
Even though there are great buys in real estate today in Chicago and other cities across this country, the people most able to buy are real estate investors with cash.
Chicago homes for sale are not moving like they did 3 or 4 years ago - inventory of homes in Chicago are at 20,399 in July, 2009.
First how long did it take us to get into this position? Folks it took at least 8 year to get into this position, and some say even longer.
Well it may take us as long to get out of it as it took to get into it.
I do not think that things will stabilize until late 2010 or late 2011.
It will take at least 3 years for things to stabilize.
If you have investments in real estate in Chicago and the greater Chicago land area you must realize that it will take at least 2 or 3 more years for the real estate market to stabilize.
Let look at it! Inflation is at a 27 year high, while personal income is down 1.
6%.
Unemployment is 9.
5%, housing prices are decreasing over most of the country, foreclosures are very high and expected to climb even higher - the second wave of ARM's are expected to hit very soon.
Defaults on commercial mortgages are increasing, the stock market is not doing well.
Pension Plans are taking a heavy hit, many folks have experienced over 30% plus loss of their pension plan funds and are worried about their future.
Even inflation is creeping up and bothersome - gas prices are going up, food prices are going up.
Banks have more properties on their hands then they can handle because of Bank REO's and foreclosures.
Real estate investors are buying Bank REO's and foreclosures and sell them at wholesale prices for profits.
It is however still difficult for the average wage earner to buy a house today because of the credit crunch.
Even though there are great buys in real estate today in Chicago and other cities across this country, the people most able to buy are real estate investors with cash.
Chicago homes for sale are not moving like they did 3 or 4 years ago - inventory of homes in Chicago are at 20,399 in July, 2009.
Source...