Chicago Foreclosure Starts Hit 22 Month High In February

Chicago Foreclosure Starts Hit 22 Month High In February
Defaults spiked in February in Chicago.

I just picked up the latest foreclosure data from ATTOM Data Solutions' RealtyTrac Web site and updated my graph below. Once again they only released a short commentary on the state of US foreclosures and they note that Illinois gets bragging rights on being the state with the 5th highest foreclosure rate. I'm sure that's primarily driven by Chicago.

Looking at the data I did notice that defaults in Chicago hit a 22 month high, which you can kinda see in the blue area in the graph below if you look real carefully. ATTOM Data did note that Chicago was one of the few larger metropolitan areas that showed an increase in foreclosure starts from a year ago. Time will tell if this is a blip or a new trend but it's hard to believe it's a new trend. No signs of a softening market yet.

But, simultaneously, bank repossessions (burgundy) hit an all time low since I've been collecting the data and auctions (yellow) continue to bounce around at the lower end of the range.

Chicago Foreclosure Activity

Chicago foreclosure activity has declined dramatically since the housing crisis.

Chicago Shadow Inventory

Also, the number of Chicago homes that are in some stage of foreclosure did increase slightly from the previous month for the third month in a row. As you can see in the graph below it's a small effect but it's going in the wrong direction! In addition, it comes after a huge plunge in the number 3 months ago. I often see this kind of reversal after a large change in this number.

Chicago homes in foreclosure

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

#ChicagoForeclosures #Foreclosures

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, 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 using the form below. Please be sure to verify your email address when you receive the verification notice.

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