Foreclosures for the state of Illinois declined 27% in February compared to January levels. Foreclosure levels were also 45% lower than February 2010. Illinois currently has the 11th highest rate nationally. Foreclosure filings also fell significantly in Illinois (33% lower than January levels). It should be noted, however, that IL still ranks third in the nation due to high unemployment and a lagging economy.
The lower foreclosure rate appears to be having a positive impact in a number of communities in the greater metropolitan Chicago area according to MLS data for Northern Illinois. Overall, the average and median sales price is flat through February 2011 compared to the same period in 2010. [Click here to see market statistics by town.]
This news sounds encouraging but the consensus is that the decline in foreclosures is due more to court challenges regarding the processing of foreclosure paperwork and other cases affecting the mortgage industry. In other words, this may just be a lull in the storm before the next hit starts. It has been widely reported that the shadow inventory of foreclosure will strongly impact the housing market. The shadow inventory for the Chicago area is, not surprisingly, huge. As a matter of fact, Standard and Poor's estimated 59 months to clear this inventory as of the end of 4th quarter 2010. The impact of a significant number of additional foreclosures is expected to cause market values to decline.
This actually may be a pocket of good news for some sellers. This is not a recovery in prices but sellers looking to put their home on the market this year may want to act sooner to take advantage of this lull. Less competition from foreclosures is definitely a good thing. Homes that are properly priced and prepared for viewing may just net a better price than later in the year.
Millie C Lumpkin, SFR
Realtor
Century 21 Pro-Team
Phone: (708) 213-6141
Email: mlumpkin@c21proteam.com
Website: http://RealEstateSolutions4Today.com
"Forget the Doom and Gloom... It's a GREAT time to Buy!"
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