One of our favorite real estate analysts and guides, Steve Harney was just on the Fox Business segment, talking about the importance of working with an expert, and also about how the time to sell is now.
Unsurprisingly, he was talking common sense about Supply & Demand, and he shared something you may not already realize: the banks have a whole lot of inventory on their books (we're talking about foreclosed homes here) that is not yet on the market for sale. As they do put these properties on the market, our already deep housing inventory becomes even deeper. How many homes? 3.2 to 5 Million homes in "shadow inventory".
Greater supply, without a surge in demand, leads to a continued softening market.
Chicago has one of the three largest shadow inventories in the country, so we will be impacted.
Steve projects, consistent with Fannie Mae, Bank of America, and Wells Fargo, an 8% drop in home prices this year.
Watch the full interview: