Continuing a trend that has been seen nationwide, Chicago has reported that its foreclosure rate is down a satisfying 59% from just one year ago, according to the latest study. This is a promising sign for the recovery of the housing market, which has seen similar drops in numbers of foreclosures across the country in 2013. Many experts believe these numbers are the signal of a recovering market; some are even calling the market ‘recovered.’
Explaining the Numbers
Foreclosures in Cook County are up 5% from last month, but the year-to-year numbers are looking much better, according to a prominent foreclosure lawyer. What the numbers mean is that the housing market is looking much, much better than it was a year ago, in terms of homeowners who are able to maintain their mortgages. One possibility, is that many of the already underwater mortgages from the 2007 housing bust have now gone into foreclosure or been the subject of short sales; this view says that the market is not recovering, but merely that the dust is finally settling from the original fallout. On the other hand, experts on the other side point out that due to a number of other supporting factors, these numbers are no fluke, but rather a sign of the housing market’s real recovery. According to this side, it means that mortgage terms being negotiated today are fair and equitable to both sides, resulting in homeowners being able to make their payments and lenders being satisfied with the numbers, as well. That is the definition of recovery, these people argue.
Whether or not this is so, it is a positive sign for Chicago and for the rest of the country; less foreclosures mean less people faced with the prospect of losing their homes, and that is always a good thing for the country.