Sue Fox, @Properties. Direct 773.816.1788

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Experts predict bottom for housing prices

filed under: Buyers, Chicago home prices, Gold Coast, Market conditions, Sellers posted on July 6th, 2011

Will 2011 prove to be the bottom for Chicago home prices? The jury is still out, but on a national level, many housing experts believe that the worst will soon be behind us.

A MILLION DOLLAR DISCOUNT: This Gold Coast

DRAMATIC DISCOUNTING: This Gold Coast greystone, built in 1883, still boasts many historic details, such as a hand-carved staircase, leaded glass windows and a mosaic tile foyer. All it needs now is a buyer! Have prices finally found a bottom in Chicago? One can assume that this owner, who 0riginally priced the home at $2.15 million, hopes so. Currently for sale at $1.49 million, it has been on the market for nearly 3 years. Jeanne Carava of Prudential Rubloff has the listing.

In June, MacroMarkets LLC polled more than 100 economists, real estate experts and investment strategists with a wide range of viewpoints, including the National Association of Realtors Chief Economist Lawrence Yun, Moody’s Analytics economists Mark Zandi and Cecilia Chen, FusionIQ CEO Barry Ritholtz, and Freddie Mac Chief Economist Frank Nothaft. More than half of the panel said they expect U.S. home prices to hit bottom sometime this year and then remain stable through 2015.

“A significant majority of our panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year end,” said Robert Shiller, co-founder of the Standard & Poor’s/ Case-Shiller National Home Price Index and Macro Markets’ chief economist and co-founder. “Despite persistent macroeconomic uncertainly and unprecedented housing market dysfunction, almost two-thirds of the panelists see the U.S. residential real estate market as at an historic turning point.”

To be sure, I still see plenty of homes that aren’t selling. But those that do sell tend to be either distressed properties at bargain prices or handsome homes with plenty of amenities in solid neighborhoods. Put it all together, and it seems home prices in Chicago are finally starting to touch bottom.

Written by Sue Fox //

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