Chicago Experienced Sluggish Growth

Chicago Experienced Sluggish Growth

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Except for November, Chicago experienced sluggish growth in housing in 2016. In fact “House prices and sales in the Chicago metropolitan area are forecast to be the lowest of all major U.S. cities and their suburbs in 2017,” reports Will County Gazette on December 22nd. The forecast, by, places the Chicago-Naperville-Elgin Metropolitan Statistical Area last out of the 100 metropolitan areas surveyed.

Chicago experienced sluggish growth

This sluggish growth is a response to high property prices, according to Mark Glennon, who runs Wirepoints, an Illinois-based business information service.

“I would say this largely reflects the exodus of taxpayers, employers and the tax base out of the state,” Glennon told Illinois Business Daily.

A day earlier the Chicago Tribune announced that “In Chicago, sales increased 13.2 percent from November 2015 to 1,881 single-family homes and condos sold. The median sales price of a condo jumped 8.2 percent to $308,500, as sales rose 11.7 percent. The price on single-family homes surged 21.4 percent to $212,450.”

In June, after several months of increases, the median price in the Chicago area hit $242,500, but it has since posted five straight months of declines.

Despite the good report, November’s sales volume was 9.4 percent lower than October’s.

Chicago faces three housing problems:

  1. Chicago experienced sluggish growth as a direct result of high property taxes causing an exodus of taxpayers and employers
  2. An inadequate supply of houses. Houses stay on the market for between 45 to 53 days. Below six months is considered inadequate.
  3. Lack of price increases. Price increases have stalled and it doesn’t look better in 2017. Price increases encourage movement and movement means an increase in supply.

Then there is another problem

There are lots of reasons for selling your house including a desire to downsize, divorce, inheriting a house and a need to sell the house, and too much debt forcing you to the edge of foreclosure. Now there’s a fifth. By almost every measure, according to the Chicago Tribune, Illinois’ population is sharply declining, largely because residents are fleeing the state. The Tribune surveyed dozens of former residents who’ve left within the last five years, and each offered their own list of reasons for doing so. Common reasons include high taxes, the state budget stalemate, crime, the unemployment rate, and the weather. Census data released recently suggest the root of the problem is in the Chicago metropolitan area, which in 2015 saw its first population decline since at least 1990.

If you are feeling uneasy about Chicago’s sluggish growth, maybe now’s the time, to call Kelbry Properties. Kelbry Properties LLC is Lake County’s and Mchenry County’s premier real estate solutions company. Since our inception we have been helping homeowners along with improving communities in each and every city we work in.

We will take a walk through your home, see if there are any pressing maintenance issues, estimate how much money it will cost to bring your house up to the buyers standards, and offer you a cash price for your house. We can close in less than 30 days. You are under no obligation, but we will give you an honest appraisal of your house.

Call us today at 224-321-5300

Merry Christmas and a Happy New Year. Feliz Navidad y Feliz año nuevo.



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