Kendall County suffers highest local rate of bank-owned sales (Crain's Real Estate Daily)

By David Lee Matthews

August 9, 2012

 

 

More than a third of all home sales in Kendall County since 2010 have been by banks, the highest rate in the seven-county area, a new report shows.

 

Kendall, about 50 miles southwest of downtown, was one of the fastest-growing counties in the Chicago area during the from 2000 to 2010, with boom towns such as Yorkville and Oswego.

 

Now that the market has turned, 35.1 percent of the 3,817 homes sold in Kendall County between Jan. 1, 2010, and June 30, 2012, were owned by banks, according to a study by residential brokerage RE/MAX Northern Illinois, which analyzed data from multiple listing service Midwest Real Estate Data LLC.

 

The lowest rate was in affluent DuPage County, where 20.5 percent of its nearly 21,000 sales were bank REO, short for real estate-owned.

 

Popular with bargain-hunters, REO homes accounted for nearly 28 percent of the nearly 180,000 sales in the Chicago area over the past 2½ years.

 

About 58 percent of those REO sales took place in Cook County, the biggest of the seven counties. Bank-owned homes accounted for 28.6 percent of sales in Cook County.

 

While the foreclosure crisis has spread across the Chicago area, the data show that the problem has a greater hold on the fringes of the metropolitan area. Also, it could be the result of a slower foreclosure process in Cook County, which lengthens the time it takes for bank-owned real estate to be put on the market.

 

Foreclosures made up 27.3 percent of all area sales for the first six months of the year, down from 2011 but about the same as 2010, according to RE/MAX.

 

Though that dip might suggest a thinning of distressed inventory, the lull is likely temporary as local foreclosure filings and auctions rise this year, said Tom Feltner, vice-president of the Woodstock Institute, a Chicago-based research and advocacy organization.

 

Foreclosures made up 27.3 percent of all area sales for the first six months of the year, down from 2011 but about the same as 2010, according to RE/MAX.

 

Though that dip might suggest a thinning of distressed inventory, the lull is likely temporary as local foreclosure filings and auctions rise this year, said Tom Feltner, vice-president of the Woodstock Institute, a Chicago-based research and advocacy organization.

 

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