Chicago Relocation
 

And What Do You Think 2012 Will Bring us…..?

January 26, 2012

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John D’Ambrogio

A recovery?  More misery?  More opportunity? I’m sure everyone has their opinions.  Tara-Nicholle Nelson – author of “The Savvy Woman’s Homebuying Handbook” and “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decision” recently posted her thoughts via Inman.com   Here are a few of her predictions:

1 – More foreclosures

I’m afraid Tara-Nicholle is spot on with this prediction.  All sources, Fannie and Freddie, and all the major banks are predicting a pretty significant increase.  In my opinion, there’s not much we can do about it except take our medicine.  The market will never adjust until it gets these homes “through the system.”  Look at AZ and FL – They took the hit, and seem to be the first to recover from this housing slump.  I’m afraid there’s no secret sauce for this one, folks.  The banks have a huge backlog, but they are ready for the task.

2. REOs and short sales will become the new normal.

Again, Tara-Nicholle knows what she’s saying, with one caveat.  They won’t “become” the new normal – they will continue to be the new normal.  While overseeing both a relocation and REO division, the last 18 months we’ve seen it become unavoidable.  I know it sounds trite to say, but “it is what it is.”  Even more importantly, REOs and even short sales are becoming “easier” to buy – less time delays as both banks and agents get better at shepherding them through the system. Another reason they cannot be disregarded as “comps.”

3.  So-called ‘smart cities’ will do well

According to Nelson’s interview with Jed Kolko, chief economist for  Trulia, he commented that ”smart cities will continue to have hot real estate markets next year. But Kolko defined smart cities much more broadly than the California tech hubs. Other tech centers like Austin, Texas, and the Massachusetts suburbs of Cambridge, Newton and Framingham all made Kolko’s list, as did Rochester, N.Y. (a town known for its highly educated, highly skilled work force).”

4. Consumers will get ‘hopeless’

Nelson says “I mean hopeless in the best of all possible ways.”  I think what she really means is “realistic.”  Which probably follows some sort of a twelve step program that includes “despair,” “denial,” etc.  Regardless, I think that her hope for “hopeless” is still a big optimistic.  I might push that prediction to 2013 myself….

Regardless, it’s a great article, you can read it all here.  And what are your thoughts, Chicago real estate professionals?

 

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