A new report predicts an uptick in home sales in Illinois in the coming year. Although a number of potential homebuyers are still sitting on sidelines. The forecast for housing prices in the coming year shows some increases, but not the kind of gains experienced in the last couple of years.
Geoffrey Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois says while the housing market continues to recovery, he says millennials would rather rent than buy.
"And this is a little surprising in view of the fact that rental rates have been escalating much more rapidly and the benefits of home ownership are becoming much more attractive", said Hewings, who also noted that uncertainty is keeping some consumers on the sidelines.
"What happens in Washington and what's been happening in Springfield is not providing the appropriate signals to make people fully confident that the economy is on track for a sustained recovery. And I think as a result, a lot of people are still sitting on the fence", he said.
Hewings says Illinois is on track to recover. He expects home prices statewide to his pre-recession levels in the next 18 months.
While the prices will be up, there are still foreclosed properties on the market that will keep prices from growing as much.
Hewings projects median prices in Illinois to rise from five to ten percent.
