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CHICAGO HOMES-FOR-SALE INVENTORY, PRICES DECLINE, But High Unemployment Likely To Keep Market Here Sluggish!

PRICES CONTINUE TO FALL, BUT CHICAGO IL UNEMPLOYMENT STILL TOPS NATIONAL AVERAGE, AND FORECLOSURES LIKELY TO ESCALATE, THROUGH 2010!

Here's the good news . . . and the bad news!

The Level of For-Sale Inventory in the Chicago Metro Area fell by 6.9% during the Fourth Quarter, 2009, according to The Wall Street Journal and Reporter James R. Hagerty.  However, Median Prices for Residential Real Estate here, homes and condos, fell significantly last quarter - 9.0%, according to their study.

The WSJ study estimates the level of Chicago Homes-For-Sale Inventory to stand at 13.8 Months during the Fourth Quarter, 2009.  On the North and Northwest Sides of the City of Chicago, where our Real Estate Team works extensively, we calculate current homes for sale inventory at 11.9 months.  These inventory levels are not only high - they seem to be increasing.  Several weeks ago, our Team calculated current home inventory levels at less than 10 months.

Further, the Unemployment Rate here in the Chicago Area still stands at 11.0% - not the highest level for Metro Areas across the U.S., by any means.  But it's still considerably higher than the 10% National Average Rate.  Most Real Estate Experts agree - if a potential home buyer fears on Friday, that he won't have a job on Monday . . . he won't make an offer on a home over that weekend!

Here in Chicago, an estimated 14.5% of all homeowners are either at least 30 days delinquent in their mortgage payments, or at some stage of the home foreclosure process.  That compares favorably to the Miami-Ft. Lauderdale FL Area, where over 28% of all homeowners are delinquent and in distress - the result of a super-heated Real Estate Market during the Housing Boom of a few years ago, and more rapid price depreciation since.  But it is still high compared to the Portland OR, Minneapolis-St. Paul MN, and Seattle WA Metro Areas, where the Mortgage Delinquency Rates are 8.2%, 8.6%, and 8.8% respectively.

Across the U.S., an estimated 13.2% of all homeowners are behind in their monthly house payments.

Unfortunately, continued weak employment figures threaten even greater loan default, and many more foreclosures dumped into a struggling-to-recover housing market.   Foreclosed and other distressed properties will drive down prices even further. many experts predict.

DEAN MOSS & DEAN'S TEAM CHICAGO

Posted: Sunday, January 31, 2010 1:56 PM by Dean's Team

Comments

BlogChicagoHomes.com said:

Good Afternoon! Despite recent declines in Homes For Sale Inventory , and moderation in Mortgage Interest

# January 31, 2010 11:28 PM
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