"I like to keep track of what may be lurking in the shadows out there that can come out and bite us," says local correspondent Honore Frumentino of Prudential Rubloff.
"Last year we had a lot of foreclosures dumped on us, and it really affected the spring market this year," Frumentino reported. "The appraisers were using distressed properties as comparables for our conventional sales, and that impacted our closings."
Frumentino subscribes to RealtyTrac data as one means of anticipating what's "lurking in the shadows," and watches pre-foreclosure activity carefully. Pre-foreclosures are properties where the borrower is more than 60 days late on mortgage payments.
With the exception of Lake Bluff, pre-foreclosures are less than two percent of households in each of the north and North Shore suburbs Frumentino monitors. "Lake Bluff," she notes, "is unusual due to the number of condos in unincorporated areas that have a Lake Bluff address."
Frumentino interprets the current level of pre-foreclosure activity and other market indicators as signaling a bottoming-out of price declines.