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Tax Hike Planned in Illinois Amid Decline in Foreclosure Sheriff Sales

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By : John Cutts    99 or more times read
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.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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