Chicago and the U.S. received another round of gloomy forecasts for the real estate market last week. According to the
Equifax Personal Finance Blog, a wide array of different sources confirmed the bad news for American homeowners, would-be buyers and the housing market as a whole. Real estate expert Ilyce Glink reported this news in her recent article, “Housing Market Predictions: Home Values Continue to Sink.”
- Home values are as low as they were in 2002 – or lower.
- A 12 percent drop in pending home sales.
- More people than predicted are filing for unemployment.
- New home sales have reached record lows.
- The number of applications for mortgage purchases is still low.
In her analysis of the statistics, Glink predicts that the real estate market “won’t work our way out of this anytime soon.” She cites the State of the Nation’s Housing Report, released by the Harvard Center for Joint Housing Studies, which indicates that tougher lending standards may be one of the reasons for the slow recovery. While the report seems to suggest that another homebuyer tax credit might provide the needed push to help the market recover, Glink disagrees saying it will take more than a tax credit to turn the real estate market around.
Now that all of us in the Chicago real estate market have had a think to chew on the numbers, what do you think? Is it all gloom and doom? Would a tax credit help? Where are you seeing hope? Check out Glink’s article at the
Equifax Personal Finance Blog, then come back and let us know what you think.