Foreclosure Properties Sales in Chicago Rose by 22 Percent

by Peter Vernon on States

Foreclosure properties sales in Chicago increased by more than 22 percent in the July to September quarter, based on foreclosure home sales data from the Illinois Association of Realtors.

Sales of all types of homes, meanwhile, increased in the Chicago area by 2.4 percent, compared to third quarter sales in 2008. Total sales rose from 20,802 units in 2008 to 21,298 this year. The sales data included sales of condo units and single-family houses.

The home sales price median was $205,000, a drop of more than 16 percent from last year’s third quarter median sales price of $244,900.

The Chicago area includes the counties of Cook, DuPage, DeKalb, Kendall, Lake, Grundy, Will and McHenry.

While overall home sales increased in the Chicago metro area, total house sales in the main area of Chicago dropped by almost 5 percent to 5,821 units, compared to 6,117 units in the July to September quarter last year. The sales price median was $230,000, a drop of nearly 21 percent compared to $290,000 in the same three-month period last year.

According to Mike Onorato, head of the Illinois realtor group, the increase in foreclosure properties sales and all other types of home sales in Illinois showed the important role of the federal tax credit in increasing home sales. He added that the expansion and extension of the program will continue to push up home sales.

Onorato also explained that the tax credit does not only help first time buyers, sellers and real estate agents, but also provides a big boost to other trades such as storage, moving, home inspection, home improvement, title and legal services.

Statewide, overall home sales increased by 0.3 percent to 32,460 units, compared to 32,358 units in the July to September quarter in 2008. The sales price median was $165,000, a drop of nearly 13 percent from the third quarter price median of $189,500 in 2008.

Local housing analysts said that the increase in home sales and the decline in sales prices indicate that homebuyers were enticed by the attractive prices. With these lower prices combined with the first time home buyer tax credit and lower mortgage rates, a lot of prospective home buyers took advantage of great buying opportunities.

According to Genie Birch, head of the Chicago Association of Realtors, the increase in foreclosure properties sales and other types of house sales in the Chicago area will continue because of investors’ interest in the city and because of the expansion and extension of the federal tax credit.

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