What is the real cost of having a foreclosure in your neighborhood? A new study looked at the Chicago area and found that having one or two foreclosed properties within a tenth of a mile of a home can reduce its price by $6,535, based on a home worth $150,000, according to research by the Regional Economics Applications Laboratory (REAL) of the University of Illinois.
REAL looked at five years of data (2008-2013) to determine the impact foreclosures were having on Chicago neighborhoods. Click here to read the full report.
While the study shows that foreclosures do impact neighborhood home prices, it is important to note that the foreclosure crisis has eased and as more of the distressed properties come off the market, Chicago’s inventory levels, and overall foreclosure outlook, are moving in the right direction. REAL provides forecasts for the Illinois Association of REALTORS® and sees foreclosures returning to pre-recession levels by as early as this fall, according to the latest forecast.
There is help available if you are a struggling homeowner trying to avoid foreclosure. Here are some foreclosure resources to consider: