A mortgage banker that has worked with several of my clients sent the following story to me. I appreciate all the information I can get. In December, I attended the Chicago Association of Realtors' Economic Forecast that preceeded the story below. We continue to see the Midwestern market as a good investment. More importantly to keep in mind, however, is that Chicago remains a great place to live and work. The decision to buy here should be based more on your lifestyle and values than purely economics (but positive numbers help!).
On Friday CNNMoney.com reported the latest 2006 housing price forecast from Fiserv Lending Solutions for 379 metro areas. This report projects declining prices in several metro areas that experienced huge growth in 2004-2005, including California, Florida, Las Vegas and New York metro areas. These markets saw price increases of up to 40% over the past year. No Midwest metro area is forecasted to experience a decline in prices. The Chicago-Naperville-Joliet metro area is projected to see a modest 0.6% growth in 2006. Projections for NW Indiana, SW Michigan and SE Wisconsin metro areas range between 3% and 7% growth. Here is the link to the full report with the forecast for all 379 areas. Check it out. http://money.cnn.com/2006/02/03/real_estate/