Chicago Relocation

Where housing is headed? WSJ responds…

November 13, 2009

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 The Wall Street Journal recently published its quarterly survey of where the U. S. Housing Market is headed.

What are some of the “30,000 feet” observations? A sharp drop in the number of homes listed for sale in most major      U. S. markets; yet a prediction for even GREATER home inventory in the marketplace.

Why?  With regulatory changes, banks are likely to acquire even more homes in the coming months, pushing them onto the open market as REOs, or foreclosed properties.

The news for Chicago, or transferees moving to Chicago or from Chicago?  A predicted 5.6% drop in inventory, to an almost 20 MONTH housing supply.  That will be in tandem with a 10.8% price change (downward, unfortunately), which happens to be the same percent as our current jobless rate.

Still, the fact of the matter is that the sooner we move through this acute correction, the sooner we will return to a normal market.  Of course, that will be the “new normal” and that is yet to be defined.

To read the entire report, click here.