RealtyTrac just released their August Foreclosure Market Report and the data for Chicago shows a continued decline in foreclosure activity but also a bottoming in the shadow inventory. It’s hard to see in the graph below but defaults, which initiate the foreclosure process, are near an all time low and bank repossessions just plummeted to an all time low since I started to track the numbers. Auction activity is still relatively high but at least that clears the pipeline.
Apparently, Illinois is running counter to the national trend in bank repossessions, which is actually on the rise. Illinois repossessions are down 22% from a year ago. This is what the national trend looks like and you can see that they are on the rise lately after several years of decline.
The good news for the nation though is that foreclosures starts continue the decline that they have been on for like 7 years as you can see in the graph below. So the nation’s shadow inventory should also be on the decline.
Chicago Shadow Inventory
So you would think that Chicago’s shadow inventory (homes in the foreclosure process but not on the market) would continue to decline given these statistics. However, for whatever reason, that’s just not the case. Look at the graph below and you’ll see that it really seems to have flattened out. I’m almost expecting it to suddenly plummet – as if there is some kind of data error that will suddenly correct itself one day.
#realestate #chicagorealestate #foreclosures
Gary Lucido is the President of Lucid Realty, the Chicago area’s full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insider’s view of the seamy underbelly of the real estate industry, or you just think he’s the next Kurt Vonnegut you can Subscribe to Getting Real by Email. Please be sure to verify your email address when you receive the verification notice.