Archive for the 'Real Estate News' Category
Price Cuts Spur Big Condo Sales in Chicago
February 25th, 2010 categories: Chicago Real Estate News, For Buyers, For Sellers, Housing Market
One thing still works for buyers struggling to sell condos in Chicago’s still sluggish condominium market: price cuts.
The HousingWire news service reported on Feb. 19 that Chicago real estate developer Belgravia Realty Group managed to sell 50 condominiums in just four weeks recently by cutting prices on units at its 565 Quincy project in the Loop by as much as 30 percent.
This made a big impact in the downtown condo market, according to Appraisal Research Counselors, the Chicago commercial appraisal firm quoted in the story. The company said that sales at 565 W. Quincy accounted for 79 percent of all new-construction sales in downtown Chicago since the first of the year.
565 W. Quincy, located at the intersection of Jefferson St. and Jackson Blvd. in downtown Chicago, provides an important point about the current state of Chicago’s downtown condominium market: Sales may be going up, but developers are slashing asking prices to fuel the jump.
It’s a good lesson for condo owners in the city, too. If you have to sell your condo in today’s residential market, make sure to meet with a skilled REALTOR® before you list your unit. A REALTOR® who knows your neighborhood and its localized real estate market will be able to help you set the right initial asking price for your unit.
Buyers today still have a lot of inventory from which to choose. This is especially true when it comes to condominium units in downtown Chicago. There are simply too many unsold units clogging the market. To sell a unit today, then, you have to do everything you can to set yours apart from your competitors. The best way to do this, still, is by offering the best price for your unit.
If you try pricing your downtown Chicago condo at an asking price that is too high for the current market, the odds are great that your unit will sit for months without attracting any solid offers. Price it right, though, and you greatly increase your chances to move your unit.
Belgravia knows this lesson. It’s one that all condo sellers should learn, too.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: 1 Comment »
Hey, Chicago, We’re Not as Miserable as We Once Were
February 23rd, 2010 categories: Chicago Real Estate News
Sometimes I don’t think people get Chicago at all. How else to explain how our city, filled with amazing theaters, top-flight restaurants and loads of recreational opportunities, consistently ranks so high in all of those high-profile lists of lousy places to live?
The latest blow came last week, when Forbes Magazine released its latest version of its list of America’s Most Miserable Cities. Chicago ranked 10th on the list, a bit of an improvement from the 2009 list, when our city came in at third.
Personally, I find such lists to be silly. Sure, they get people talking. My colleagues and I were debating the merits of Chicago’s spot on the list the day the news broke. But, really, such lists are hardly scientific. And in Chicago’s case, “researchers” aren’t taking into account all of the things that make our city so great.
For instance, there’s the amazing Millennium Park. There’s the Magnificent Mile, Wrigley Field, Soldier Field, the Museum of Science & Industry, Alinea Restaurant, the Steppenwolf Theatre … I could go on forever. How could a city with so many terrific places be the 10th most miserable in the country?
Granted, the survey does take weather into account, and no one around Chicago is too happy with the weather these days. Then there’s unemployment, which, of course, is high right now in Chicago. But there aren’t many cities across the country in which residents aren’t worried about losing their jobs.
To reassure myself that, despite what the editors at Forbes might think, people really do love our city, I just have to look at the growing number of real estate transactions I’m handling these days in neighborhoods like Lincoln Square, Lincoln Park, Lakeview and Wicker Park. People are seeking out condos and single-family homes in these areas because they’re impressed with how much in entertainment, dining and shopping these areas have to offer. They also know that real estate in these neighborhoods, despite the housing slump, tends to retain its value.
For the record, Cleveland topped Forbes’ list of miserable cities this year. The city reached the top because of high unemployment, lousy weather, equally lousy sports teams and corrupt public officials. Some of that does sound familiar to Chicago residents, I suppose. (Right, Blagojevich?) But most of the other cities on Forbes’ list simply can’t compare to Chicago when it comes to amenities and housing values.
In short, there is no way Chicago belongs on the magazine’s list.
| Discussion: No Comments »
Housing Prices in Chicago Still Affordable, According to Zillow
February 19th, 2010 categories: Chicago Real Estate News
Zillow.com has quickly become one of the most popular sites for homebuyers and sellers. Buyers use it to help determine if the home they are considering is a bargain or a rip-off. Sellers use it to help set the best price for their own listings, not too high and not too low.
Problem is, Zillow isn’t always accurate when it comes to housing prices. I’ve found that the market reports from the Illinois Association of REALTORS® are usually a far better gauge of how the Chicago housing market is performing.
That said, it can be fun to use Zillow to check out the average housing value of homes in your city. And the site is useful for determining housing trends: You’ll be able to tell, for instance, if home values rose or fell from one month to the next, and by about how much.
That’s why the fourth quarter markets report released earlier this month by Zillow is an interesting read. The news for Chicago? It’s good for buyers, not as great for sellers.
According to the report, home values in Chicago dropped 9.9 percent from December of 2008 to the same month in 2009. Zillow lists the average value of a Chicago home at $200,900 in December of 2009. For the entire Chicago region, which also includes the suburbs, the average value of a home stood at $197,400.
What does all this mean for buyers and sellers? For sellers, it means that you really do have to be careful when setting the price of your residence. If you price it too high, you’ll struggle to sell; buyers can simply find better bargains from another seller. Your best move is to meet with a skilled REALTOR® who knows real estate prices in your neighborhood. This real estate professional can help you set the best price for your home.
For buyers, the Zillow report is actually good news. You can still find a reasonably priced house in Chicago, even if you’re looking for a condominium or single-family home in such hot neighborhoods as Lincoln Park, Lincoln Square, Lakeview or Wicker Park.
Of course, you shouldn’t take the Zillow report as gospel. You’ll find that Chicago homes in top locations in trendy neighborhoods will usually sell for far more than $200,900. This doesn’t mean that the Zillow report isn’t interesting reading, or that it doesn’t highlight local housing trends. It’s best, though, to rely on a REALTOR®’s information when trying to determine whether a home is a good bargain or slightly overpriced.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Is Super Bowl Still The Kickoff To The Chicago House-Buying Season?
February 8th, 2010 categories: Chicago Real Estate News
Here are some interesting spending stats about America’s favorite football game, the Super Bowl:
1. Nielsen Research reported that nine out of 10 U.S. households planned to watch this year’s clash between the Colts and Saints at their own homes or at a friend’s instead of at a bar or restaurant.
2. Only 5 percent of consumers said they expect to spend more on food and beverages for the Super Bowl this year than last.
These two numbers suggest one thing: Consumers are still being frugal with their money. They’re still not spending freely. And who can blame them? Many of them are still worried about losing their jobs.
What does all this mean for the Chicago residential real estate market? Well, if consumers are as interested in saving money as they say they are, they’ll find that now is a terrific time to buy a condominium or single-family home in Chicago.
The median sales price of homes in even the top city neighborhoods, places like Lakeview, Lincoln Park, Lincoln Square and Wicker Park, is down significantly from just one year ago. The Illinois Association of REALTORS® reported that the year-end median price for a Chicago home in 2009 stood at $225,000. That’s down a solid 22.4 percent from 2008, when the year-end median price stood at $290,000.
Buyers have traditionally returned in droves to the residential real estate market after the Super Bowl. It’s as if the big game marks the unofficial end of the winter-holiday season. What about this year, though? This is still an unusual market, what with the national unemployment rate still uncomfortably high. Will Chicago buyers start looking in earnest for new townhomes, condominiums or single-family homes now that the game is over?
I think they will. It’s just too good of a time to buy. If the buyers do come out, they’ll find some terrific bargains. And if we’re to believe the statisticians at Nielsen, that should be enough to provide yet another boost to our local housing market’s young recovery.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: 1 Comment »
Even Super Bowl QBs Struggling In Today’s Condo Market
February 4th, 2010 categories: Chicago Info/News, Chicago Real Estate News, Economic Recovery, For Homeowners, For Sellers, Housing Market, Mortgage Info, Real Estate News
I don’t think Rex Grossman will have too many fond memories of Chicago. True, the former Chicago Bears’ starting quarterback led Chicago to the Super Bowl following the 2006 season. But he lost that game. He eventually lost his starting job, too. He was eventually “kicked” out of Chicago – Bears fans had long since turned on the quarterback – and is now a backup quarterback for the Houston Texans.
Now comes the news that Grossman, like so many other Chicagoans, has had to sell his city condominium at a loss. And not just any loss: According to the Chicago Sun-Times, Grossman sold his condo in River North’s Trump International Hotel & Tower for a whopping $700,000 loss.
The Sun-Times reported that Grossman sold his condo for $2 million last week. The paper also reports that he purchased it for $2.68 million in September of 2008. Grossman originally put the unit up for sale at $2.89 million before reducing his asking price to $2.3 million and eventually selling for $2 million.
Grossman’s tale is a good lesson for the owners of Chicago condominiums: Although the market has picked up considerably since 1/1/2010, unless one has lots of equity or absolutely has to sell, now might not be the best time to put your unit on the market. According to a story in the Chicago Tribune, condo prices in Chicago are now at early 2004 levels.
The Tribune cites data from Standard & Poor’s/Case-Shiller that shows that prices fell 8.5 percent for Chicago condominiums in the 12 months that ended in October.
Many condo owners have no choice but to sell now. Their employers may be transferring them to a new city. Maybe they’ve found a better job on their own in a new location. Or maybe they’re going off to graduate school across the country. Whatever the reason, these folks can’t wait out the market.
Their best bet is to do everything they can to set their condo units apart from their competition. These owners should work closely with their REALTORS® to set up a marketing plan. This may include steps as simple as giving their condo’s interiors a fresh coat of paint or something as advanced as hiring a professional stager to show off their unit in its best possible light.
In today’s Chicago condominium market, sellers need every advantage they can get.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
