Monthly ArchiveJanuary 2008

chicago-condos Dave on 31 Jan 2008

Chicago realtors band together to protest transfer tax

Realtors from around the Chicago region are banding together to protest a new transfer tax on real estate transactions.  According to the Chicago Association of Realtors, the 15,000-member organization will actively oppose any additional taxes on real estate transactions.

The group will hold a press conference today at city hall to protest the proposed tax increase of about 40 percent on the transfer tax of all properties in the area.  According to the plan, the increased revenue would go to fund the Chicago Transit Authority.

However, according to the Chicago Association of Realtors, the new transfer tax will go towards funding pension plans for the CTA, instead of buying new buses and trains.

The increase in the transfer tax is about $10.50 per $1,000.  This would represent a cost of about 1 percent on the total sales price, a hefty tax increase just at a moment when sales around Chicago are falling.

The city council should work to foment sales of condos and homes around the city by making it more affordable for people to buy and sell their property.  Find great deals on Chicago Condos and move into the home of your dreams today.

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chicago-condos Dave on 30 Jan 2008

East Garfield Park condo market cools

After two years of strong sales in the neighborhood, the East Garfield Park condo market saw a pronounced drop in demand during the third quarter.

According to data from the Chicago Association of Realtors, a total of just 9 condos were sold in the neighborhood, down from 32 units sold during the same period in 2006.

The drop in sales led to a marked increase in the inventory of unsold condos and lofts sitting on the market in the neighborhood.  If you’re selling your condo in East Garfield Park, it will now take you an average of 185 days to find a buyer, the longest that it has taken in more than 16 years.

However, despite the dramatic drop in sales and record turnover times, prices rose sharply during the third quarter.  The average sales price rose by 18 percent from the same period in 2006.

Buyers will want to watch prices in the short term to ensure that they do not get in the market at the peak.  If demand for Chicago Condos in East Garfield Park doesn’t increase, many sellers may be forced to offer lower prices to attract added interest in the area.

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chicago-condos Dave on 29 Jan 2008

Retail vacancy rates on the rise around Chicago

Condo sales aren’t the only worry for developers these days.  After several years of strong interest in new retail space, developers of Chicago Condos are now facing the specter of vacant space.  As the economy experiences what some are calling a recession, many Chicago area retailers are pulling back from plans for expansion, leaving many spaces vacant.

According to a report from real estate firm CB Richard Ellis Inc, the vacancy rate rose from 7.84 percent to 7.89 percent during the third quarter.  However, the annual increase was much higher, rising from 7.21 percent.

Rents were also up during the period, according to the report.  The average asking rent in the Chicago region hit $23.39, the highest level since 2004.

Some major leases have been signed in recent months, particularly around the Chicago suburbs.  However, until companies can measure the damage done by a recession in the economy, the vacancy rate for retail space on the Chicago real estate market could continue to rise.

However, as the number of mixed use developments coming on the market falls, the vacancy rate may level off over the next few months.

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