Despite high attention at the national level for having so much foreclosure inventory, the comparison between bank-owned and non-foreclosure inventory is not quite as terrible as it may seem. In a new study by the Chicago Real Estate Notes blog, there is marked improvement in Chicago foreclosure inventory thanks to more initiatives from the government, such as the Block by Block program, which are proving effective in helping Chicagoland real estate recover.
When it gets down to the numbers, distressed property has shrunk from being 12 percent of the overall housing inventory down to 7.2 percent between March 2012 and 2013. In addition, the percentage of home purchases that were bank owned has shrunk down significantly – at this time in 2012, it was a full 18.9 percent of homes (nearly one out of every five homes sold was bank owned) down to 12.6 percent, or just over one in ten. Finally, all homes – distressed or not – are selling for more. In 2012, the average home price in Chicago was $374,500, while distressed homes sold for $200,000. Just a year later, homes are selling for $20,000 more on average at $395,000, while distressed homes saw a bigger jump up to $230,900.