AgentMarkets & Economy

Short sales the order of the day in Chicago

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Is it time to start worrying about Chicago?

Personally, it's one of my favorite cities to visit, but on an objective level, the trend lines aren't good and the state government isn't helping.

Earlier this year, to ease a budget crisis, the state passed a tax bill that increased state income tax from 3 percent to 5 percent and the corporate tax rate from 4.8 percent to 7 percent. Immediately, other states such as Indiana and New Jersey cranked up efforts to lure away Illinois businesses. But, even before the tax increases, there were concerns about job growth in the state.

"I don't think there has been very good job creation in the state of Illinois nor in the city of Chicago," said Mabel Guzman, president of the Chicago Association of Realtors. "And now the tax base has become an issue."

Unlike other Midwest cities, Chicago has done a good job of recreating itself as a vibrant metropolitan area, thus maintaining i...