We’ve discussed previously on our blog about the rising number of foreclosures in Chicago and across the state.
Now, according to this article from BankForeclosuresSale.com, the focus of the rising number of foreclosures in Chicago isn’t centered in the city anymore — the suburbs are presenting high numbers of foreclosures, too: “In the northern and northwestern suburban areas of Cook County, where Chicago is the county seat, foreclosure filings have increased by about 40 to 49 percent in 2009 compared to 2008, indicating a shift in foreclosure intensity from the center of Chicago and in the southern suburbs to the more affluent neighborhoods in the north.”
With even more affluent neighborhoods seeing increased foreclosures, you can expect the lower prices of Chicago homes for sale to continue. And as homes on the more expensive end of the market lower their prices to compete with the short sales of foreclosed homes in the same neighborhood, the overall average price will also continue to decrease.
Particular suburbs affected included:
- Western Springs, foreclosure filings increased by 65 percent in 2009.
- La Grange, foreclosure filings increased by a small percentage in 2009.
- Oakbrook Terrace, foreclosure filings increased by an astounding 79 percent in 2009.
What is the cause of so many suburban households facing foreclosure? “Local brokerage owner Paul Stepanovich said that the foreclosure crisis has crept into the homes of affluent households as big corporations laid off their top executives.” As foreclosures affect the real estate market in Chicago on all levels including the affluent suburbs, “home prices in Chicago will remain lower by 6 percent than prices in other parts of Illinois,” predicts Geoffrey Hewings, economist at the University of Illinois.
While for sellers and for the overall stability of the real estate market, a growing number of foreclosures isn’t the best news, it does create increased opportunity for those looking to invest in Chicago real estate. Overall home sales in Chicago have been up for the past couple of months, signaling that many buyers are indeed taking advantage of the low home prices. Whether you’re looking for a short sale to snap up or shopping Chicago homes for sale with reduced prices, these options will undoubtedly continue to be readily available in the suburban market surrounding Chicago.
If you are a buyer looking for a short sale in the city, you will probably be just as lucky as you would be in the suburbs. According to City Room, “Foreclosure filings jumped almost fifty percent last year in Edgewater. In Lincoln Park, they doubled. But in a lower-income community like Englewood further south in the city, filings actually dropped.” The higher income urban communities on the north side of the city of Chicago faced the foreclosure crisis like the rest of the city — the high concentration of condos sold in the past few years in those areas have led to an increased number of foreclosures as well.
Whether you are a buyer or seller in this economy, you should keep an eye on the Chicago real estate market. Understanding the trends we are experiencing, even if you need the help of an experienced agent to do so, will help you navigate the market and make good investment decisions.
