Condo Foreclosures Take a Growing Share of Chicago Market (REO Insider)

By Jon Prior

July 22, 2010

Foreclosures on condominium units in the six-county Chicago area made up 19% of all filings in the first half of 2010, from 17% last year, according to the Woodstock Institute, a nonprofit research firm based in Chicago.

Lenders foreclosed on 39,212 Chicago-area properties in the first-half of 2010. That’s up 37.5% from the first half of 2009. In Q210 alone, there were 21,216 foreclosures, more than double the amount in Q209.

The largest increases in the first half of 2010 occurred in the region’s middle- and higher-income communities, according to Woodstock. Of all filings, 72% were single-family homes, and 9% were on multi-family properties. Condos made up the rest and are taking a larger portion of the market.

Condos located in Cook County showed the highest increases in foreclosure. In the Northwest region of the county, predominately the suburbs of Chicago, 44% of all foreclosures were on condos in the first half of 2010, up from 39% last year. Filings on 98 condo units in a single development made up 7% of all condo filings there in the first half of 2010.

According to Woodstock analysis, many of the new condo foreclosures in the six-county region “may be extremely concentrated geographically in large suburban developments.” Outside of the suburbs, growth in condo foreclosures remained relatively flat.

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