Welcome to the DK Home Team
S&P is now putting the “Shadow Inventory” principal balance at $450 Billion
S&P is now putting the “Shadow Inventory” principal balance at $450 Billion
Shadow inventory is a term that refers to real estate properties that are either in foreclosure and have not yet been sold or homes that owners (banks) are delaying putting on the market until prices improve. These are mainly the result of the mortgage meltdown of 2007-2008.
According to Realty Trac, one in every 577 housing units received a foreclosure filing in February 2011.
Here is a breakdown of the number of foreclosure filings in February, by county, for Cook and the surrounding collar counties in Illinois:
- Cook County 1 in every 470 homes
- Lake County 1 in every 308 homes
- McHenry County 1 in every 298 homes
- DeKalb County 1 in every 405 homes
- Kendall County 1 in every 174 homes
- Will County 1 in every 279 homes
- Kane County 1 in every 293 Homes
The total foreclosure activity in these 7 counties accounts for 7,574
Sales Trends:
Cities with the highest gains in Home Sales prices, based on the last 2 calendar quarters, are River Forest with an average sales price of $602,967,a 39.39% quarterly increase, followed by, Schiller Park, Hazel Crest, and Prospect Heights.
The city with the greatest drop in home sales prices was Downers Grove with an average sale price of $255,258 (a 25% quarterly % decrease in value), followed by Hoffman Estates, Ingleside, Lincolnshire, Winnetka, Burbank Zion.
How do we rank on a National level regarding the foreclosure rate?
- Nevada
- Arizona
- California
- Utah
- Idaho
- Georgia
- Michigan
- Florida
- Colorado
- Hawaii
- Illinois
NOTE: Before we get that warm fuzzy feeling about NOT being in the top 10, keep in mind that in Judicial foreclosure states there was a 19% decrease in the foreclosure filings in January and a decrease of 48% from February 2010. Judicial States are taking much longer to clear up the robo signing mess than non-judicial states. These figures do not reflect the increased delay in filings which could be substantial.
From everything we are hearing in the industry, there appears to be some agreement that 3rd and 4th quarter will see an increase in REO inventory at a controlled pace.
