Foreclosures in Chicago continued to surge in the suburbs in 2009, according to nonprofit Woodstock Institute.
In the northern and northwestern suburban areas of Cook County, where Chicago is the county seat, foreclosure filings have increased by about 40 to 49 percent in 2009 compared to 2008, indicating a shift in foreclosure intensity from the center of Chicago and in the southern suburbs to the more affluent neighborhoods in the north.
In the western areas of Cook County, especially in Western Springs, foreclosure filings increased by 65 percent in 2009. In La Grange, filings also increased, but only by a small percentage.
In Oakbrook Terrace of DuPage County, filings soared by 79 percent, the highest rate of increase posted in the suburbs.
Local brokerage owner Paul Stepanovich said that the foreclosure crisis has crept into the homes of affluent households as big corporations laid off their top executives.
Sarah Duda and Geoff Smith, the researchers who prepared the Woodstock report, said that foreclosures in Chicago will continue to increase if the unemployment problem is not addressed and if home values continue to fall.
Home prices in many parts of the state continued to fall as the pace of Illinois foreclosures continued to surge. Based on home sales data from the Illinois Association of Realtors, the sales price median for houses for sale in Kane County fell by 6 percent to $159,900 in January this year from $169,750 in January last year. The average sales price also fell by more than 8 percent year-over-year from $194,956 to $178,188.
According to Geoffrey Hewings, economist at the University of Illinois, home prices in Chicago will remain lower by 6 percent than prices in other parts of Illinois as foreclosures continue to surge in the suburbs and in more affluent areas in Chicago.
Nevertheless, the surge in foreclosures pushed total home sales up in January this year. According to the Illinois realtor association, the metro area has been showing a trend of increased sales for the last seven months of 2009. Another research firm also said that total house sales in January this year surged by 29.2 percent from sales in January last year.
In Kane County, home sales soared by more than 43 percent in January this year. Sales in Kendall also increased, posting a jump of more than 41 percent in sales.
As the pace of foreclosures in Chicago continue to surge, the drop in prices are expected to continue pushing up total home sales.
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