Your Guide has been jealously watching the economic recover and the related recovery of the real estate market in other major markets while the market remains sluggish in Chicago. Stats from Federal Housing Finance Agency show that Chicago experienced its 13th straight quarter of price declines.
Home prices in the Chicago area have now fallen for 13 consecutive quarters — more than three years — as foreclosures and short sales continue to take a toll on the market, according to the Federal Housing Finance Agency.
The agency’s index of home prices in the area decreased 3.02% in the fourth quarter compared with the same period in 2009 and dipped 0.77% compared to third-quarter 2010. The last time local prices increased was third quarter 2007, when the index rose 0.89%, according to the agency.
Check out the whole article at Crain’s here.
From the Credit Suisse survey of Real Estate Agents:
Traffic weak as buyers remain hesitant. Traffic levels remained below agents’ expectations in February, as our buyer traffic index came in at 28 (from 26 in January), with readings below 50 pointing to less than expected traffic for this time of year. Agents stressed that buyers were still looking for stronger signs of a recovery before they started seriously shopping for homes. One agent mentioned “buyers are looking for a bottom.” Another noted that “people want more job security before they put themselves out there with a mortgage.”
Chicago, and probably due to the pressures on the budgets for the State of Illinois and Cook County have still put a rather stern damper on the economic recovery here in Chicago. And we’re finally seeing the foreclosure crisis hit neighborhoods that had been immune to foreclosures and economic distress. More distressed sales (such as short sales and outright foreclosures) are hitting premium north-side neighborhoods like Lakeview and Lincoln Park.