Chicago Real Estate Leaders See an Improved 2012

January 29, 2012

How do you think the Chicago real estate market will do this year?

The experts are being “cautiously optimistic.”

The Midwest Real Estate Data (MRED), the Chicagoland multiple listing service (MLS), shared statements made by its Board of Managers on the upcoming year in real estate.

“I agree that we have reason to be cautiously optimistic,” said Russ Bergeron, Chief Executive Officer of MRED. “As we move forward and see the signs of an economy and real estate industry that are turning the corner, we all need to be prepared to take advantage of the ‘new normal’ market.”

Most of the MRED leaders believe the real estate market has “hit bottom” in recent years and that 2012 will begin the road to recovery.

“After the last four years, 2012 will be like a breath of fresh air,” said Tom Guttilla, Owner of Coldwell Banker Today’s Realtors.

“Rates will stay at historic lows and sales volume is improving but is still at lower levels. This, combined with the pent up demand from the last few years should ensure future sales increases and improving values, but the latter only after inventories are diminished.”

The needs for larger sales volume and smaller inventory are not the only obstacles impeding a complete housing recovery this year.

“I think signs are showing improvement but the foreclosures will continue throughout the year, even at a slower pace, which will keep prices low. Interest rates may become a factor as the economy improves, however,” said Jim Haisler, Chief Executive Officer of the McHenry County Association of Realtors┬«.

“2012 will be a good year, but I think the longer term outlook is even better for the next three to five years.”

One thing all the managers agreed upon is that real estate professionals need to stay educated on such topics as the mortgage industry, market trends and changes with lenders.

After all, the glory real estate years of 2001-2006 are over.

“For those who continue to operate under the premise the housing boom is coming back and home prices are going to sky-rocket again, this year will not be good at all,” said Anthony Trotto, Attorney and Managing Broker of Anthony J. Trotto Real Estate.

“But for those who adapt and learn about where we came from so we don’t go there again, the year should at least be fulfilling.”

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