According to a recent report, Chicagoland experienced an overall increase in foreclosures during the first quarter of 2012. Foreclosures increased about 8% compared to the last quarter of 2011. [See complete article.] The other side of the distressed market are short sales. This includes those homeowners who were in pre-foreclosure as well as those who were underwater on their mortgage. Nationwide, short sales are surging in some areas but there has only been a moderate increase overall in Chicago’s south/southwest suburbs. Shown below is a table showing first quarter foreclosure and short sale figures for a select number of south suburban communities.
Overall, according to the MLS, foreclosures were 43% of total first quarter sales in the south/southwest suburban area. This is a 3 pp increase from the last quarter of 2011. Foreclosures remain very high in some communities. Other communities such as Homewood and Monee saw foreclosures rise significantly.
Short sales were 13% of total first quarter sales in the south/southwest suburban area. There was a 3 pp increase from the last quarter of 2011. Crete, Matteson and Olympia Fields showed the biggest increases in the percentage of short sales. However, most communities remained fairly stable in regards to the percentage of short sales.
RealtyTrac reports that there were 12 states in January where short sales outpaced REO sales. Some of these states include CA, FL, AZ, NY and NJ. IL has the 3rd highest foreclosure activity but there is not an appreciable increase in short sale activity in most south suburban communities. It has consistently had one of the highest foreclosure rates in the country month after month. It was only 2.5% of the total # of U.S. short sales in January 2012. Hopefully, trends will change and more Chicagoland homeowners will take advantage of the benefits of short sales.
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