Byline: ALBY GALLUN
After falling nearly 5% in 2007, Chicago-area home prices are poised for an even steeper drop this year as the housing market hangover persists.
An index of Chicago-area single-family home prices will decline 8.1% in 2008 and another 2.2% in 2009, according to a forecast by Fiserv Lending Solutions, a unit of Brookfield, Wis.-based Fiserv Inc.
Amid a weak economy, rising foreclosures and a tough lending environment, homeowners shouldn't expect a rebound anytime soon. Home prices remain high relative to area incomes and will need to fall further for the market to stabilize.
"Sellers are still needing a serious reality check,'' says A. J. ...