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Distressed Properties Listings in Chicago Expected to Improve Soon

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By : John Cutts    99 or more times read
The housing market of Chicago, Illinois is on the verge of recovery, with problems related to distressed properties listings and foreclosures expected to ease soon, according to Mack Industries Inc. founder Jim McClelland. Mack is a residential development firm that specializes in bank owned homes.

McClelland based his forecast on several housing market developments, including the fact that most properties falling under Chicago foreclosure listings during the first six months of 2010 came from higher income and middle income communities. This, McClelland states, shows that foreclosure has run its course in the area.

He also stated that despite a wide array of choices in terms of properties under foreclosure listings in Illinois, the volume of existing house sales in the city of Chicago has risen for the current year. He predicts that these types of dwellings will post rising sales prices by the start of 2011.

Sales of single family dwellings, condos, foreclosure listings houses and regular residences in the city have increased steadily for the past 12-month period as shown by data provided by the Illinois Association of Realtors. Sales of these homes for June 2010 have risen by more than 27% when compared with the same period a year ago, McClelland has added.

Other reasons for the predicted recovery cited by the Mack Industries founder are declining vacancy rates among apartments, increasing rental rates, fewer properties under distressed properties listings and a decline in the number of underwater loans.

He also noted that although underwater mortgage loans in the city during the 2010 second quarter is still at a high of 29%, this is at least lower than the 31.8% recorded during the first quarter of the current year. The fact that mortgage rates are at record lows also helped, according to McClelland. He stated that current rates prevented further lowering of housing prices.

However, he also stated that higher rates would not be bad either, since they would mean improved confidence in the housing market and better chances for price appreciation among residential properties, including newly built homes and even dwellings under distressed properties listings. He also noted that year-over-year housing price declines as of May 2010 represent a vast improvement when compared with pricing declines recorded a year ago.

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