The real estate market in major cities around the country is going through one of the most difficult times in recent years.
Two years ago, almost anyone could apply for a mortgage and receive approval. Subprime lenders were offering mortgages with adjustable interest rates to underqualified buyers.
This strategy backfired, as shown by the drastic increase in foreclosures around Chicago and the rest of the country. According to RealtyTrac, Inc, the number of foreclosures in the city increased by 12.5 percent in August alone.
As the Fed moved interest rates higher several times a year, many homeowners were unable to cover the rising costs of their mortgages.
The Fed recently stepped in to give homeowners a reprieve on rising costs by dropping interest rates.
This action by the Fed was also expected to spur demand from new buyers who could now afford the cost of a mortgage.
However, the most recent numbers from the Mortgage Bankers Association show a 2.7 percent decline for the last week in September.
Government officials and industry experts are left wondering what, if anything, can jumpstart the floundering real estate market.
One thing is for sure. If demand continues to drop around the city, then buyers should be able to find Luxury Chicago Condos at excellent prices in the short term.
Technorati Tags: Chicago Mortgage Crisis, Chicago Foreclosures, Chicago Real Estate Report
