Illinois’ Housing Market Is Expected To Massively Crash In 2024
Illinois doesn't have the best real estate news to start 2024.
We all know that it's not a good time to be trying to buy a house right now. Forbes predicts that this year, homes will be on average 40% more expensive than they were in 2020. Meanwhile, we're all doing good to just afford groceries right now.
Newsweek says that three states in particular are expected to see a housing market crash this year and one of them is Illinois.
Why The Market Is Crashing
There are 3 factors that put Illinois in particularly hot water:
- more foreclosures
- higher unemployment rates
- more underwater mortgages (if you need that definition like I did: it's a home loan with a higher principal than the home is worth)
Another issue that seems to be sticking around are the problems COVID caused, like unemployment and overall messiness.
The Most Vulnerable Illinois Counties
Newsweek says that Cook, De Kalb, Kane, Lake, McHenry, and Will Counties in Illinois (around Chicago) are particularly at risk because wages are staying the same but house prices are going up a lot and affordability is a problem post-COVID.
A housing market crash would be a domino effect though, according to Yahoo Finance. So even if the problem starts around Chicago, there's no reason it couldn't make it's way through the rest of the state.
The other two states at a large risk of a housing market crash are New Jersey and California.
Signs The Housing Market Is Crashing
Yahoo Finance says you should watch out for a few signs to figure out if the housing market where you live is crashing:
- House prices are going up quickly but wages aren't going up to match it
- Lots of homes available, but not many are being sold
- Rising mortgage rates
- The overall economy struggles
- Rental properties are struggling to find tenants
- Shadow inventory impact (houses that aren't technically listed but could be on the market)
- Consumer confidence
- External factors impact property values (natural disasters, zoning projects, etc.)
- Foreclosure rates go up
If you start to see a lot of those signs around where you live, it could be a sign that the housing market isn't doing so hot in 2024. Research what you can do and be prepared.
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