Monthly ArchiveJuly 2010
July 30, 2010 - According to the latest report from the Cook County Assessor’s office, foreclosure sales accounted for about one third of all residential sales in the first three months of this year (2010). There were nearly 8,100 Chicago condos, apartments and single-family homes that closed during the first quarter of this year and of those, 35% were foreclosure sales of some kind. That translates to about 2,851 units that sold and closed from January through March of 2010 that were a type of foreclosure sale.
Those foreclosure sales play a big part in driving down the price of Chicago real estate, according to a Crain’s article. On top of that, the median price of a foreclosure sale in Cook County also fell about 21% to $88,500 in the first quarter of this year as compared to last year. The median price of all other non-foreclosure Chicago condos and single-family homes only dropped about 7% in the first quarter of this year to $231,000.
The article went on to point out that all of these Chicago foreclosure sales may be driving down condo values right now, but the sooner they are sold and absorbed the sooner the over-supply of homes will be eliminated. When that happens and there isn’t such a glut of condos on the markte, prices New Chicago Condos should become stable and begin to recover.
Chicago Real Estate pcherry on 29 Jul 2010
July 29, 2010 - More than a few planned Chicago real estate developments have been scrapped the past couple of years due to the beating that the housing market took. Some projects are left partially built while others never made it past the paper stage. The Park 1000 is one of those that probably would have been a success if the timing had been right. But the parcel of land where the planned high-rise was to be built was recently auctioned and the price it brought is a reminder that the market hasn’t recovered yet.
The Park 1000 site was located close to Grant Park on 1000 South Michigan Avenue. It is a prime piece of property and about $25.3 million was still owed on the site by developer Warren Barr. Rick Levin conducted the auction recently and acording to a Crain’s report, the building site only brought $11.3 million as the winning bid, with the winning bidder an affiliat of teh First American Bank that is owed the money in the first place. That is less than 50% of the amount still owed to the bank, and a sobering look at currently land values. The bank will take title to the land, according to the article.
Park 1000 was to be a 40 story tower with 346 Chicago condos. The one to three bedroom condos were marketed for anywhere from the $280,000s to over $1.4 million. Because of the slowdown of the housing market back in 2008 when Mr. Barr was trying to sell units, he didn’t get enough purchase agreements signed to satisfy a lender and obtain a construction loan. First American then was granted a foreclosure in 2009 for the money loaned to buy the site.
Buyers still have plenty of choices when it comes to Chicago condos for sale even without the developments that never made it above ground.
July 15, 2010 - Parkside of Old Town is still advertising price cuts on the townhomes and Chicago condos that are for sale from the developer. Reductions of as much as 30% to 40% are in effect, so if you’ve been considering making a purchase at Parkside, you may want to visit the sales center soon.
There are still around 27 townhomes for sale and those are designed with from two to three bedrooms and have attached garages with parking for either one or two cars. The prices on the townhomes at Parkside of Old Town start in the $330,000s with the 40% price cut.
There are about 75 condos still available at Parkside with 30% price reductions. Prices on the one bedroom condos start in the $170,000s and the two bedroom condos are priced from the $240,000s. The larger three bedroom condos start in the $320,000s. Indoor heated parking is also available for condo residents.
Another perk about Parkside is that the development has FHA approval so qualified buyers may be able to get that low 3.5% down payment. The City of Chicago and the Partnership for New Communities $10,000 grant is also still available for qualified buyers.
You can compare the condos and townhomes at Parkside of Old Town with other New Chicago Condos for Sale and see how the prices and finishes rate.