I frequently get questions from clients about the state of the real estate market. We are all well aware of the challenges that persisted in the residential real estate market through 2009, and most analysts have mixed feelings about what 2010 will bring. I believe we will see a gradual increase in the total number of transactions; however when we might reach a bottom in home pricing is anybody’s guess. Until the abundance of current and forecast foreclosures clear the market, we will continue to see downward pressures on home values.
Because of the large amount of distressed property owners in the market today, I recently partnered with a group that is one of Chicago’s most successful short sale and pre-foreclosure companies. While conventional transactions are still a large part of my business, I am now able to do more to help those clients and homeowners in need. Operating under the Jameson brand, we have set a goal to help as many distressed homeowners as possible.
A short sale allows a homeowner to avoid the damaging effects of foreclosure on their credit and relieves them of their mortgage debt (95% of the time without any further financial obligation). We have been able to help many homeowners successfully sell their homes at prices far less than the existing mortgage(s) on their properties. Through the short sale process, we negotiate directly with a homeowner’s lender to accept a mortgage payoff amount significantly less than the total loan balance. Because of the Mortgage Forgiveness Debt Relief Act of 2007, our client’s tax liability from these transactions is forgiven. These clients often walk away from very difficult situations with no financial obligation.
I recently put together a report that provide in depth housing statistics into select neighborhoods in the Chicago residential real estate market. It tracks average home prices during each of the last five years, and average market times. I’ve broken it down by Chicago neighborhood, including: Lincoln Park, Lakeview, Lincoln Square, Bucktown, Wicker Park, Roger’s Park, Ukranian Village, Streeterville, South Loop, West Loop, and beyond. If you would like me to email you a copy, please let me know!