Another Record Low In Chicago Foreclosure Activity

A couple of weeks ago ATTOM Data Solutions updated their RealtyTrac foreclosure data, which I use to maintain the graph below of monthly Chicago foreclosure activity data. August hit another record low in activity since I’ve been monitoring it.
There are 3 components to foreclosure activity: the number of defaults, the number of auctions, and the number of bank repossessions. Defaults represent the initial stage of the foreclosure process while auctions and repossessions represent the end of the process. For August defaults hit a new low and auctions came exceptionally close to a new low. In total activity was down 25% from the previous year, continuing almost an unbroken trend over the last 2 1/2 years. ATTOM Data Solutions reported that the nation as a whole saw a 24% decline in foreclosure activity from a year ago – very close to Chicago’s record.

Chicago Foreclosure Activity
Chicago foreclosure activity has declined dramatically since the housing crisis.

Chicago Shadow Inventory

Unfortunately, one really important metric has not seen an improvement since November of last year. That’s the total number of homes that are in some stage of foreclosure or shadow inventory. You would think that declining activity would also be reflected in a decline in that number and, for most of the time that I’ve been tracking this, that has been true. But since November there has actually been an increase in shadow inventory to the tune of 391 units.  This appears to be the longest stretch without some material decline in inventory. Hell if I know why.

Chicago homes in foreclosure
Chicago’s shadow inventory of homes in foreclosure is about 1/5 of what it once was.

#Foreclosures #ChicagoForeclosures
Gary Lucido is the President of Lucid Realty, the Chicago area’s full service real estate brokerage that offers home buyer rebates and discount commissions. If you want to keep up to date on the Chicago real estate market or get an insider’s view of the seamy underbelly of the real estate industry you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.

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