Market Update: Glencoe and Glenview

Before getting to the Glencoe and Glenview updates, I first want to share a little info about the North Shore for comparison.

For the entire North Shore, here are some important numbers to note with regard to distressed property sales during the past 12 months. 

Chicago’s North Shore 12 months ending 7.26.2011	Bank-owned properties Sold	Short Sales	Total distressed property sales
Total	408	338	746
% single family homes	59%	65%	62%
% condos/townhomes	41%	35%	38%

 

 

 

Meanwhile, as of July 26, 2011, there were 1,465 properties on the North Shore in pre-foreclosure.  These are households that are behind on their mortgage payments by at least three months.  All of these properties that may end up on the market as short sales or they may end up in foreclosure and sold as bank-owned properties.  Some homeowners may recover from and catch up on their payments, but the majority will not. 

Additionally, on the same date, I found 503 bank-owned properties in the tax records on the North Shore.  Some of these are already listed for sale, and the rest will be hitting the market in the coming months. 

So, to summarize, there were 746 distressed properties sold in the past 12 months, and there are potentially 1,968 distressed properties in the wings on the North Shore.

Interestingly, even though there were 746 distressed properties sold during the past 12 months, the total number of distressed properties in the wings (also known as “shadow inventory”) is about the same today as it was in January when I last reported on this.  This means that there are additional households having financial difficulties and falling behind on their mortgages.  A useful benchmark I am using to analyze the local markets is the number of distressed properties sold during the past 12 months as a percentage of the shadow inventory.  For the entire North Shore this is 746 divided by 1,968 or 38%. 

Glencoe

Shadow inventory in Glencoe declined from 33 properties to 27 properties from January to July.  This is a good sign for this community.  And, there were 17 distressed sales (short sales or bank-owned properties) during the past 12 months.  The number of distressed sales over the past 12 months was about 63% of size of the shadow inventory – another good sign for this market as this is significantly higher than the North Shore benchmark average of 38%. 

Glencoe 12 months ending 7.26.2011	Bank-owned properties Sold	Short Sales	Total distressed property sales
Total	6	11	17
% single family homes	100%	100%	100%

 

 

Glencoe may be at, or close to, the bottom of the market and should see stabilization in home prices as the remaining distressed properties are sold. 

Glenview

The number of distressed properties in Glenview as of July 26^th (265) is about the same as it was on January 26^th (262).  About ¼ of these are bank owned properties – the rest are in pre-foreclosure.

A total of 136 distressed properties sold in Glenview during the past 12 months.  This is about 51% of the shadow inventory, and is better than the 38% average for the North Shore.

Glenview 12 months ending 7.26.2011	Bank-owned properties Sold	Short Sales	Total distressed property sales
Total	84	52	136
% single family homes	62%	35%	51%
% condos/townhomes	38%	65%	49%

 

 

 

I believe that Glenview will continue to see some downward pressure on prices in the coming months because even though 136 distressed properties were sold, they have almost the same number in shadow inventory as they did 6 months ago.

Watch for Highland Park, Kenilworth and Lake Forest tomorrow...(or contact me directly for the complete report all in a single document.)

Thanks for reading!!

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