More Foreclosures In Village

Posted in Foreclosures, July 1st, 2008 |

Morton Grove village is seeing more foreclosures and less number of sales. The situation is much better than those areas that have been badly scarred with foreclosures but nevertheless the problem of vacant foreclosed units is becoming a cause for worry after many years of ‘unprecedented growth.’

The North Shore-Barrington Association of Realtors compiled foreclosure figures. It showed that the number of house sales and the price has gone down but the foreclosure numbers have increased. During 2006 to 2007 the number of sales fell by 24% to 170 from 224. Simultaneously the median value of houses dropped by 5% to $375,000 from $395,000. The figures include single-family units only. But if condos are included then the number can be assessed to be about double. In 2006 Morton Grove saw 25 foreclosures of residential houses. In 2007 it had jumped by 144% to 61 units. In the adjacent villages of Skokie and Niles the spike was 92% and 129% respectively.

The drop in real estate indicates the drop in value of houses and in the sale of houses that are not expensive. Joel Moll deals with real estate in Morton Grove. He comments that houses valued at more than $500,000 have little chance of being marketed. But those within the price range of $200,000 are still finding buyers.

For three or four years the going was good says Bill Neuendorf the director of Community and Economy of the village. But from 2007 the hiccups have started. He reasons that the increase of foreclosures in Morton Grove is partly because of speculation. People bought second houses as investment expecting quick profits. But the timing was wrong. The phenomenal increase in real estate could not sustain itself – a fall was inevitable. Now they are stuck with houses that cannot be sold in a seller’s market. Today the value of the units has become less than even the loan amount. Morton Grove has been badly hit like the rest of the country. Neuendorf added “Before you could sell a house in three months.” But now the waiting period has extended from six to nine months. He is optimistic that things are bound to take a turn but nobody knows when that will be.

Morton Grove continues to be a quiet haven with good schools and the best of facilities. All the fundamentals of real estate are present. If the boom had not come this burst would not have followed.