An interesting study published by the Chicago Reporter this week shows the struggles many homeowners are facing in Evanston. The study looks at the likelihood of buyers to take out a high-cost or subprime loan based on race, and found some interesting results.

According to t he report, African American buyers were five times more likely to be shouldered with a high-cost or subprime loans than white buyers. A total of 48 percent of African-Americans who were surveyed had a high-cost loan in Evanston. However, just 10 percent of white buyers were facing the same difficulty in finding an affordable loan in Evanston.

High-cost and subprime loans have been one of the main causes of a recent jump to record levels of foreclosures around the country, and that has many real estate professionals concerned. Markets that have seen a lot of foreclosures in recent months have also experienced double-digit drops in prices. Nevada, California, and Florida lead the nation in foreclosures and price declines that exceed 20 percent.

The high rate of subprime loans among African-Americans in Evanston as well as many other Chicago suburbs could hit hard in low income neighborhoods around the region, and result in the loss of home values for many parts of the North Shore Chicago Real Estate market.

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This entry was posted on Tuesday, May 6th, 2008 at 10:53 pm and is filed under Evanston Real Estate(t) .