Monthly ArchiveJanuary 2009

chicago-condos & Chicago Real Estate pcherry on 28 Jan 2009

Townhomes Still Available At Cornelia Court

January 28, 2009 - Construction on the townhomes of Cornelia Court is moving along pretty well, and the second phase of this Chicago real estate development is basically sold out. The last sales figures released from Anchor General indicated that there was only one residence left for sale, and that was a three story, 2 bedroom, 2.5 bath unit that was priced in the mid $400,000s. The townhome has been used as a model, and as such it has a lot of upgrades and can be delivered immediately if bought.

Phase three at Cornelia Court still has a few homes available as well, and there should be a model ready for viewing sometime next month. The townhomes in phase three, the Addison, Cornelias and Bentleys, range in size from about 2,242 to 2,904 square feet and are priced from the $500,000s to mid $600,000s.

Cornelia Court has 32 townhomes across six buildings already standing. When the rest of the construction is complete at this Avondale complex, there will be another seven buildings with 31 more townhomes. Many experts are predicting that buyers will be drawn to smaller homes with fewer upgrades, but this development has bucked that trend and had some decent sales considering the slow housing market. There are evidentially still buyers out there who want more space and are willing and able to pay for a townhome or larger Condos In Chicago.

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chicago-condos & Chicago Real Estate pcherry on 27 Jan 2009

Chicago Home Sales Down 26% From Last Year

January 27, 2009 - The S&P/Case-Shiller Home Price Index report made public this week gave a sobering and realistic view of the troubled housing market. The report showed that home prices in 11 of the 20 biggest U.S. markets experienced record annual drops. All of the 20 cities in the report showed price decreases from November 2007 to November 2008. Overall, November year to year prices (2007 to 2008) fell a record 18.2%.

Locally, Crain’s reports that the Illinois Association of Realtors found that Chicago area homes sales were down 26% from last year. The median home price also fell about 5.5% in 2008. There were a total of 68,676 single-family homes and condos that sold in 2008. That number is down from the 92,657 that sold in 2007.

For in-town Chicago, sales of single-family homes and condos were down 25.9% in 2008. A total of 20,589 residential units sold, down from the 27,503 that sold in 2007. The median sale price for a residence in-town Chicago was $290,000 for 2008. That is only a 0.5% drop from the 2007 median prices of condos in Chicago and single-family homes.

The city of Chicago also fared better than the nation as a whole when it came to sales in the last month of 2008. From December 2007 to December 2008, home sales in-town Chicago dropped 17.5%.

Chicago real estate seems to be retaining value better than many of the markets across the U.S. While Chicago home sales and values have declined, the gap hasn’t been as big as Florida, Nevada or California. Home owners can take some encouragement from that.

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chicago-condos & Chicago Real Estate pcherry on 26 Jan 2009

The Peshtigo Struggles For Sales

January 26, 2009 - The list of Chicago real estate projects that are marketing but haven’t been able to obtain a construction loan or break ground yet keeps growing. And with condo sales slowing at almost every project, hitting the magic number for lenders to fund a high-rise is getting even more difficult. In the past, usually 40% of a building’s units had to be sold before a construction loan could be secured. Now, many banks are requiring at least 50% and even 60% in some cases and they aren’t supplying all of the funds needed. The developer has to put up some equity as well. With that in mind, the future of The Peshtigo may be uncertain.

Related Midwest is the developer for this 57 story high-rise, and they have already had to cancel another large scale project, Canyon Ranch, due to lack of enough sales. The Peshtigo was designed by Ralph Johnson of Perkins and Will, with plans calling for 358 condo units in the $180 million development, according to an article in Crain’s. Of those 358 condos, only about 61 have been pre-sold so far, from data gathered by Appraisal Research Counselors. That’s only roughly 17% and far from what would be needed to gain financing.

The developer hasn’t issued any formal statement one way or the other as to whether or not the project will continue to market units, be shelved unit the economy improves or be scrapped completely. The excess inventory of new Condos In Chicago will increase this year as more projects wrap up construction, and more developers are deciding to wait out the cycle until at least 2010 before launching any more.

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