The home prices have increased double digits in five year increments since 1980. 1980-85, 25%, 1985-90, 27%, 1990-95, 25%, 1995-2000, 29% AND 2000-2006…89%. We are NOW in a market of adjustment. The downturn in economy, increasing number of short sales and foreclosures and reduced number of qualified buyers are driving prices down. According to First American Corelogic in 10/09, “21% of Illinois mortgages are underwater”. Stan Humphries, Zillow’s chief economist says “The negative-equity will rise and spin off more foreclosures. I see a substantial downsize risk to prices and I don’t think we’ll see a bottom until the middle of next year”.
Now, to the question of waiting to sell your home; the current tax credit through April, 30, 2010 should stimulate buyers in the first quarter. Business Week in 9/09 says “With any luck, three years should be long enough for the U.S. economy to recover and for the nation’s housing inventory to shrink to more normal levels.”
USA Today has looked at the housing situation by state. Illinois' excess housing is predicted to be reduced by 2012 or later. If you want to sell or need to sell January through June 2010 seems to be a good time. After that, we’ll have to wait and see how fast housing inventories will grow. For more details, please contact us at piketteamrealtors@hotmail.com.