Gloom in the real estate market
When will the turnaround come in the real estate market? The most recent numbers from the US government show that the housing slump is worsening across the country.
Sales of homes around the country are down over 8 percent. The supply of new homes on the market is also at levels not seen in 18 years.
Homebuilders are slashing prices on new developments to attract new buyers. However, many buyers are unable to qualify for loans due to problems in the credit market.
Banks and lenders have tightened requirements for mortgages, locking many potential buyers out of the market.
Many financial institutions have been hard hit by the recent increase in foreclosures in cities throughout the nation. Chicago saw an increase of 12.5 percent in foreclosures during August, according to RealtyTrac, Inc.
The Fed lowered interest rates last week, but it is still unknown if that will spur demand for real estate around the country.
Buyers looking for a deal on Chicago Homes should be able to find lower prices in the short term. As inventory sits on the market longer, many sellers facing financial difficulties will be forced to lower prices.
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