If you think U.S. economy sucks, think twice!

Spring is officially here and it brought new hope to a number of counties around the world, especially those hit hard by the current recession. Last winter was probably the most difficult to bear in Island. This small country between Europe and America has not only a very cold climate, but is also now in a middle of economic crises of catastrophic proportions. 

The failure of the country’s biggest banks in October 2008 eliminated more than two thirds off the value of the local currency last year and pushed inflation to almost 20 percent while sending unemployment to a record high.

 

 The outlook for the rest of this year is grim. Experts predict a 10.5 percent economic contraction (!!!) which in turn, may help contain the runway inflation.  You can learn more about economic troubles of Island on my favorite economic blog – Planet Money.

In this country we face a rising wave of foreclosures after a number of self-imposed foreclosure moratoriums ended last week. Buyers take advantage of extremely low prices not seen on real estate market for a decade or more. You can see a number of foreclosed houses, foreclosed condos and other bank owned properties in Cook County by visiting www.arlingtonheights-realestate.info

First Time Home Buyers to receive $8,000 bonus

The Stimulus Bill becomes a law today and among 787 billion dollars, there is something everyone involved in the real estate business should be glad about: a bonus for first time home buyers! It is big enough to cover a 10% downpayment on a modest condo or a townhouse. Once President Obama signs the Bill, anyone who purchased a home between January 1st, 2009 and November 30th 2009 is entitled to $8,000 or 10% of the home's value, whichever is less, that can be claimed on 2008 or 2009 taxes.

Buyers may not have owned a home for the past three years and must live in the house for at least three years after the purchase. Otherwise they would have to pay back the credit to IRS.

There are also some income restrictions: buyers must earn less than $75,000 for single filers or $150,000 for couples. If the make more than that, they may receive a partial credit.

If there is anything to jump-start this real estate market, the first time home buyer bonus is certainly something we can count on. Cheap condos, especially bank-owned homes clog up our Chicago suburbs MLS inventory. An $8,000 bonus will certainly help clear the huge backlog created by bank foreclosures in our region.

Home Sales in Illinois Up in December 2008

According to Illinois Association of Realtors, In the month of December, home sales in the Prairie State were up 7.38 percent higher in December 2008 with 6,590 units sold compared to November 2008 6,137 units sold. On the other hand however,  sales were down 17.5 percent from December 2007 total sales of 7,990. 

For the intire 2008, a total of 107,680 units were reported sold, 23.3 percent less from 140,378 sales in 2007.

With historically low interest rates and huge real estate inventories, great deals are to be found almost in every neighborhood. Please visit our website for more information about foreclosure properties including foreclosed condos in Des Plaines IL and Arlington Heights IL.