Chicago Real Estate Market Could Feel Effect of Nationwide Mortgage Problems
The Chicago real estate market continues to face problems as the city sees lower sales and higher inventory levels of homes and condominiums.
Nationwide mortgage problems could exacerbate the problems for homeowners, developers, and investors around Chicago.
According to the National Association of Realtors, stricter lending requirements could lead to a decline in home sales over the next few months.
According to the NAR, the number of existing home sales during 2007 is predicted to be 5.92 million, down from 6.48 million during 2006.
The total number of sales of new homes is also expected to decline to 801,000 during all of 2007, off from 1.05 million during the previous year.
Sales of homes in Chicago declined to 2,247 during the second quarter of 2007, according to the Chicago Association of Realtors. This is almost 25 percent less than the number of sales seen during the second quarter 2006.
The inventory of single family homes for sale in Chicago is also up, with turnover times up to 116 days citywide. The short term outlook for the Chicago real estate market continues to show a buyer’s market in the city.
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