Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

CHICAGO 2011: 25% OF HOMEOWNERS “UNDER WATER”; BUYERS MARKET STILL IN PLAY

Crain’s reported today that approximately 25% of Chicago-area homes with mortgages, are now worth less than the debt owed on them.  This is certainly no surprise to the many homeowners feeling the pain of the recession.  What’s shocking is that the number is not higher, it seems like everyone knows someone either in the process of a short sale or foreclosure.

The number of short sales and foreclosures seem to be growing at an epidemic rate.  Real estate agents specializing in short sale transactions are busier than ever and vultures are scooping up investment properties throughout the city.

The detailed report was prepared by CoreLogic and shows a quarter of Chicagoland homeowners with mortgages, are either “under water” or had “negative equity”, during the second quarter.  The chief economist, for CoreLogic, Mark Fleming, was quoted as saying, “The hardest-hit markets have improved over the last year, primarily as a result of foreclosures.  But nationally, the level of mortgage debt remains high relative to home prices.”

This is a serious issue and with the high number of homeowners feeling the pinch, the end does not appear anywhere in sight.  There is good news for some; first-time buyers, investors, and longtime renters have the opportunity of a lifetime to secure a heavily discounted property at record low-interest rates.  

It is impossible to believe that anyone with semi-decent credit, steady employment and a minimal down payment would not apply for a FHA loan and secure a home now.  Renters still hanging on in this market would have to be those who are just not in the position to buy a home.  In the end, it is still better to own a home than to pay rent to a landlord.

If you are interested securing an amazing deal in Chicago, start viewing incredible homes now or register here for assistance.

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September 13, 2011 - Posted by | CHICAGO REAL ESTATE | , , , , , , , , , ,

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