Chicago real estate update
The Chicago real estate continues to struggle to improve due to the current economic recession and the numerous economic problems it has caused. Unemployment, foreclosures, and decreasing home values plague the real estate in Chicago and many experts believe that the city will continue to suffer in the coming months and most likely through 2010 and into 2011. Some believe that Chicago’s real estate market has not hit bottom yet and warns people to expect declines to continue in the next few months. Although experts still expect Chicago real estate rates to decline, many are optimistic that the decline seen in the coming months will not be as low as many people expect.
The Chicago Tribune reports that many of the high-end properties in and around Chicago are having a difficult time being sold, with many people being forced to reluctantly reduce prices. Nevertheless, many properties are still much more expensive that people are willing to pay given the current condition of the Chicago real estate. Although realtors are reporting that some ultra-high-end homes have been sold, many are also saying that most homes, despite significant discounts, still take on average 500 days to sell. Lake Forest, a high-end community in Chicago had 20 homes for sale in the $5 million range, and in the past 12 months, only one home in that price range sold. Many people are struggling to sell their expensive homes, and some have resorted to using web sites, neighborhood cocktail parties, open houses, and significant price cuts to sell their home out of desperation.
The Chicago Real Estate Daily predicts that commercial real estate values in Chicago will continue to decline and will not hit bottom until 2011 or 2012 before making a recovery. Although the Chicago real estate market of apartments is expected to start to improve the most and begin to recover significantly by 2011, the retail and industrial real estate markets are forecasted to continue to decline into 2011 and 2012. Many local real estate experts have come to accept the grim future of Chicago’s real estate market in the coming months, but many are optimistic that the market will not decline as much when it hits bottom, even if the market stays at bottom for 24 months.