Archive for the 'Illinois Articles' Category

The number of newly-built homes and houses offered at foreclosure properties auctions that were sold in March 2011 declined in Rockford, Illinois compared with the same 2010 month. However, sales were higher when compared with February 2011. Average selling prices of dwellings in the region also went down from last year and from the previous month.

According to housing market analysts, Chicago home auctions and residential property sales in most Illinois markets showed that the industry is still in the throes of the foreclosure crisis as majority of residents are still opting to rent than purchase a residence. In March, sales figures were mixed, depending on which timeline is used to compare monthly figures with. The Rockford Area Realtors has reported that a total of 211 housing and condo units were purchased by buyers in the region in March of this year.

This represents a surge of 22% when compared with the number of new houses and properties in Illinois home auctions that were sold in the area during February of this year. However, compared with March 2010, the sales total represents a decline of 32.6%, with last year's sales reaching a total of 313 residential units. Market analysts have explained that year-over-year figures are more reliable in gauging trends in the housing industry, but they did remind market observers that 2010 sales figures were skewed by the federal government's tax credit program.

They claimed that sales at foreclosure properties auctions and at regular home sales channels in 2010 were artificially inflated by as much as 16.5% by the tax credit initiative, which means that the sales decline recorded in March is not as high as statistics demonstrate. They also stated that the coming months will be much better for Rockford's home sellers as unemployment rates in the region continue to drop.

Realtors share analysts' optimism, with most of them reporting increased interest from homebuyers. Sellers are also said to be taking advantage of the anticipated surge in sales by holding more open houses and house showings to lure buyers in. Despite the optimism, industry analysts are still worried about the continuous drop in housing prices in the region.

As of the end of March, average selling prices in Rockford had declined by 7.1% compared with February to rest at $103,856. The February 2011 average selling rate was at $111,824. Meanwhile, average prices of homes sold at foreclosure properties auctions and newly built dwellings sold during the month declined by 10% compared with March 2010 when the rate was pegged at $115,416.

The population loss encountered by most Chicago communities during the 2000 decade was attributed in part to the high number of bankruptcy homes and foreclosed properties in the region. During the 10-year period, 57 of the metro area's 77 communities experienced population decline, according to a 2010 U.S. census report.

The report revealed that the areas hardest hit by dwindling populations were the South and West, where a huge number of African Americans live. These people, the report stated, left the area as crime escalates and more homes fall into foreclosure Chicago home auctions. Another reason cited was the decline in the quality of schools in both sides and the economic squalor prevalent in the neighborhoods.

One example cited was Englewood, a neighborhood located on the South Side of Chicago, where a huge number of properties had been sold at Illinois home auctions. Almost 25% of the area's population, equivalent to around 9,500 residents, was reportedly lost by the area over a period of 10 years. Another 10,000 have also abandoned the neighboring community of West Englewood.

According to housing market analysts, the population decline happened gradually during the first half of the decade, but the recession and the housing market crisis that occurred later accelerated the loss. In the last two or three years of the decade, the number of foreclosed houses and bankruptcy homes that have been abandoned and left empty increased dramatically, leading more people to leave the area to avoid the sight of boarded up dwellings.

Residents revealed that the rise in the number of abandoned properties, most of them homes at auctions, drove away even those who still have their homes and have avoided the foreclosure crisis. They stated that these homeowners cannot abide living in a neighborhood surrounded by empty houses. The number of immigrants in the city has also declined over the decade as Hispanics and other groups left their neighborhoods.

The areas of Pilsen, Little Village and Logan Square, generally known as immigrant neighborhoods, have reportedly lost 8,000 to 12,000 residents during the course of the decade. Residents stated that, if the number of abandoned foreclosed dwellings and bankruptcy homes rises again this year, more people will likely leave the metro area.

Sales of residential properties, including foreclosed houses offered at Sheriff Sales and foreclosure auctions, declined in Illinois last year. Now, the real estate market is facing the possibility of an increase in income taxes that some are predicting will have a huge impact on the housing market.

Last year was not a very good one for home sellers in the state. Elgin foreclosure auctions and other property auctions all around the state posted fewer numbers of closings. Housing data for Illinois showed that sales of houses increased during the first half of 2010 while the federal government's tax credit program was in place. However, figures declined rapidly in the second half, immediately after the expiration of the tax credit.

One good development for the housing market of the state is that December 2010 sales, including properties offered at foreclosed home auctions in Illinois, posted improved numbers compared with sales figures recorded in December 2009. This improvement has given rise to optimism among housing market observers that the trend will continue in 2011.

However, some analysts claim that the planned increase in taxes might reverse the positive trend in the housing market. According to them, people buying properties from Sheriff Sales and foreclosure auctions might be put off by the planned tax hike. Individual income taxes are projected to rise to 5% from 3% in the state, while corporate taxes will reportedly increase to 9.5% from 7.3%.

Realtors stated that the projected increase in taxes makes it harder to gauge where the real estate industry is going. With foreclosure auction houses selling more properties last December, local agents and brokers are worried that the coming tax rate hike will derail the momentum of the home selling sector. However, most realtor associations in the state have yet to express an outright stand regarding the potential impact of the hike on the residential property market.

A number of housing industry observers stated that, although realtors and other industry participants are eager to see Sheriff Sales and house auctions continue their positive run, they are also aware that the tax hike will help the fiscal condition of Illinois. So far, no official stand has been issued by local realtor organizations.

Real estate brokers reported that a big percentage of residential properties for sale in Chicago, Illinois, in 2010 was foreclosures. This is because supplies of foreclosed properties escalated in the city last year, with total numbers recording a significant jump when compared with 2009 levels.

Compared to other mortgage lenders, Bank of America has been driving more Chicago foreclosure auctions over the past years.

Karen Hsu, a lawyer at Land of Lincoln Legal Assistance Foundation, has provided details on foreclosure regulations governing tenants of repo homes in Illinois.