Today is the last day of 2007, a year that brought many changes to real estate markets around the country. The Chicagoland market wasn’t spared the impact of peaking real estate values and the challenges of “creative” loans that created some of the artificial demand that contributed to the push up of real estate values.

Tomorrow we start 2008. In 2008 purchasers of real estate will be those who actually need, and can afford, the property they are buying. This will result in fewer transactions but those that are completed will be real transactions, with buyers who actually will be using the properties as a home or as a long term investment. Hey, isn’t that what should always be done?

This adjustment is positive for the long term strength of the real estate industry. We may not be able to make a complete adjustment in 2008, but we will make significant strides forward so that 2009 and and beyond will again be years of solid performance for the real estate industry in the Chicago area. Here’s to starting on the road forweard in 2008!