Chicago Foreclosed Homes for Sale Drove Total Home Sales Up- By: John Cutts
The total home sales for September in an Illinois city rose significantly. Thanks to Chicago foreclosure homes sale which helped push up the sales number, making it three consecutive months of increase.
The September home sales gain was the biggest in three consecutive months. According to industry experts, sales posted in the city were the first year-over-year gain for 3 and a-half years. Meanwhile, sales across the Chicago area also rose for three consecutive months compared with the same period in 2008.
Statewide, year-over-year home sales rose for the first time since March 2006, according to market data. Meanwhile, home prices continued to drop in the area compared with the previous year.
Industry experts said that because of the significant rise in home sales, particularly with Chicago foreclosed homes for sale, there is a lobbying effort to extend the federal tax credit of $8,000 made available to first-time homebuyers. The tax credit is scheduled to expire by the end of November.
Experts said that much of the credit in the increase in home sales in Illinois and other parts of the country is given to first time homebuyers who flocked to foreclosure sales hoping to get good deals and to investors who are laden with cash and want to take advantage of the current low priced houses.
Industry analysts pointed out that based on current trends, the tax credit has greatly helped in pushing up the home sales numbers. They believed that extending the program until 2010 would help significantly in stabilizing home prices and creating job opportunities that rely on the housing market.
In the Chicago region, a total of 6,862 condominiums and single-family houses were sold in nine counties last month, representing an increase of 5.9 percent compared with 6,477 total sales for the same month last year.
The monthly percentage gain year-over-year was the highest of the three monthly consecutive sales increases since May 2006.
Meanwhile, year-over-year median prices dropped in the city and the Chicago area. Median price means half of the houses sold for less and the other half sold for more. The median price in the region was $199,000 last month, a 10 percent drop compared with the same month last year.
The drop in prices showed the continued influence of Chicago foreclosures for sale which pulled down home prices below their market value.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.