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Illinois Real Estate Market: When Will My Home Value Return?

Illinois housing prices hit their peak in 2009, but sellers will need to wait until the excessive inventory of homes on the market begins to get cut down.

The Fiserv Case-Shiller Analysis noted that home values in nearby Indiana are expected to return in the second quarter of 2013. However, the fact of the matter is that there are still a huge number of Illinois homeowners who are either struggling to pay their mortgage or who are stuck in a home with a quickly deflating property value. In other words, the foreclosure crisis has hit Illinois, and it has hit Illinois in a big way.

Large Inventory of Homes

The large inventory of homes in major Illinois markets, such as Chicago, has seen slowed sales and falling home prices. The current supply of homes could take some time to clear the market, leaving many anxious homeowners in the lurch.

Home prices continue to free fall, with some areas, such as Chicago, experiencing a near double-dip decrease in home prices. The loss of value in the homes in Illinois means that many homeowners will find themselves underwater in their mortgage.

There are some areas of Illinois, like Decatur, that have proven everyone wrong. Decatur housing prices have seen slight increases, as many people have begun looking outside of the urban areas for inexpensive homes. Areas of central Illinois, such as Peoria, have seen small dips in home prices as well. The majority of home sales in Peoria are between the $120,000 and $150,000 range, showing that buyers are looking for more modest homes.

As the economy took hold over Illinois in 2009, major employers began to make large cuts and foreclosures began to pick up. Homes are lingering on the market for a longer period of time, although Illinois cities like Bloomington have seen rising home prices and a smaller inventory of homes on the market. Homes are expected to increase in value about 3.6 percent over the next year.

Median Home Prices Showing Improvement

Median home prices in Illinois have begun improving, although they are still declining. Median home prices are expected to decline five percent during 2010. Although this is still a decline, it is much better than the 20 percent declines of 2009.

The large inventory of homes on the market, foreclosure problems and declining home values have all contributed to the struggles of the Illinois housing market.

• Chicago
• Aurora
• Rockford
• Naperville
• Joliet
• Springfield
• Peoria
• Elgin
• Waukegan
• Cicero