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Archive for the 'Chicago Real Estate News' Category

Demand for Condos, Apartments High in Downtown Chicago

 

Demand for Condos, Apartments High in Downtown Chicago

Demand for Condos, Apartments High in Downtown Chicago

It seems as if everyone wants to live in downtown Chicago today. This isn’t surprising: The city’s center, and its surrounding neighborhoods, offer plenty of boutique shops, restaurants, theaters, bars and parks. Why wouldn’t people, young and old, want to live in this part of the city?

The good news if you already own a condominium in this part of Chicago? Demand for residential space in downtown and the neighborhoods connected to it doesn’t seem ready to wane.

Crain’s Chicago Business proved this with a recent story detailing the early plans for a huge apartment tower in the city’s Loop.

CIM Group, which is the owner of the Block 37 shopping mall in downtown Chicago, has secured the first permits it needs to build a 34-story, 690-unit apartment tower on the top of the four-story mall that it owns. The tower will rise across the street from the Macy’s store on State Street, according to Crain’s.

According to Crain’s, the new apartment tower will be the largest rental building by number of units in the city’s central business district in several years. The project will also rank as the largest rental building in the entire downtown market since the 848-unit Alta at K Station opened its doors in 2010.

Some worry that the city’s downtown market might be seeing too many apartment buildings these days. But so far, demand for rental units in and around downtown has remained strong.

CIM Group’s plans for downtown Chicago show me that the city’s residential real estate market remains a hot one. People still want to live in downtown Chicago and the neighborhoods surrounding it. This is a trend we see across the country: People are moving from the suburbs and into the center of big cities.

This, of course, is good news for anyone who already owns a condo unit in the center of Chicago. I can’t predict whether your condo’s value will rise. No one can do this. But as long as demand for downtown and urban living remains high, real estate in areas like downtown Chicago will remain a sound investment.

The MG Group is an award winning residential real estate group ranked #1 IN ILLINOIS & TOP 40 IN THE NATION since 2011 by The Wall Street Journal & in Real Trends’ THE THOUSAND TOP REAL ESTATE PROFESSIONALS. The MG Group is also recognized as a LUXEHOME 25 by Top 25 Luxury Broker in Chicago and FIVE-STAR REAL ESTATE PROFESSIONAL by Chicago Magazine. SHARE THIS POST & FOLLOW US NOW ON:

 

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Foreclosures Still Hurting Chicago

Foreclosures Still Hurting Chicago

Foreclosures Still Hurting Chicago

Foreclosures and short sales continue to be a problem in the Chicago area, according to a recent story by Crain’s Chicago Business .

According to the story, Illinois in July had the country’s fifth-highest percentage of home sales that were considered distressed — sales that were either foreclosures or short sales. Crain’s cited numbers from RealtyTrac showing that distressed sales made up 18 percent of July home sales in Illinois. Only Nevada, Florida, Arizona and Michigan had a higher percentage of distressed home sales during the month.

Across the nation, distressed home sales made up just 13.6 percent of all home sales in July. This shows how much of a problem foreclosures continue to be in Chicago and Illinois.

Foreclosures, of course, can cause prices in an entire neighborhood to drop. Consider this example: You’re selling a home for $250,000. Unfortunately, a similar home at the end of your block is in foreclosure. That home is selling for $190,000. The odds are good that buyers will choose the foreclosure home.

If you have too many foreclosure homes in your neighborhood, you’ll have to lower your own asking price to compete for buyers. Today’s home buyers, after all, aren’t going to spend more on a home just because it isn’t in foreclosure.

The foreclosure numbers are even worse in the Chicago area itself. The Crain’s story points to numbers by Midwest Real Estate Data charting short sales and lender-sold foreclosure sales. According to these numbers, distressed sales accounted for 20.6 percent of home sales in July in the nine counties of the Chicago area. That number is too high. The good news? It’s the lowest that figure has been since January of 2011, according to the Crain’s story.

The truth is, until the Chicago area sees a smaller number of foreclosures and short sales, the city’s housing market will continue to be held back. Yes, the city’s housing market has shown steady improvements. But the improvements could be even stronger if there weren’t so many distressed sales holding back the momentum.

The MG Group is an award winning residential real estate group ranked #1 IN ILLINOIS & TOP 40 IN THE NATION since 2011 by The Wall Street Journal & in Real Trends’ THE THOUSAND TOP REAL ESTATE PROFESSIONALS. The MG Group is also recognized as a LUXEHOME 25 by Top 25 Luxury Broker in Chicago and FIVE-STAR REAL ESTATE PROFESSIONAL by Chicago Magazine. SHARE THIS POST & FOLLOW US NOW ON:

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Chicago Luxury Apartments are in Demand

Chicago Luxury Apartments in Demand

Chicago Luxury Apartments in Demand

Downtowns are hot today. And Chicago is no exception.

A recent story by Chicago Magazine illustrates this nicely. According to the story, the city’s luxury apartments are leasing quickly. At the same time, developers are flocking to downtown Chicago to add more apartments to the city’s core.

The Chicago Magazine story cites data provided by Appraisal Research Counselors showing that by the end of 2016, downtown Chicago could see as many as 8,700 new apartment units. That’s a significant figure, especially considering that there are about 28,000 total apartment units in downtown Chicago today.

As an example of the demand for high-end downtown apartments, Chicago Magazine points to the performance of the new luxury apartment tower OneEleven Wacker. According to the story, the development’s 500 units are more than 50 percent leased. That’s impressive, considering that the building has only been open for six weeks. A total of 150 leases were signed before OneEleven Wacker opened its doors, according to the Chicago Magazine story.

These apartment units aren’t cheap, either. The Chicago Magazine story points out that monthly rents for studio apartments in OneElevenWacker stand at nearly $2,000 a month.

These numbers should come as no surprise to anyone who knows downtown Chicago. The center of the city has become a 24/7 neighborhood, offering everything from boutique shops and high-end restaurants to green spaces, bars and experimental theaters to its residents. There’s so much to do, it’s no wonder that people are willing to spend big dollars to live here.

The demand here is strong, too, for condos. Buyers today want the urban experience. They want to walk to public transportation, restaurants, grocery stores, theaters and shops. Many of today’s younger buyers don’t even want the hassle of a car.

I expect, then, demand for downtown Chicago living to only increase in the coming years. City centers are popular today across the Midwest. And Chicago’s downtown certainly ranks as one of the best urban downtowns on the globe.

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The Latest Numbers: Sales Down, Prices Up in Chicago Housing Market

Sales Down, Prices Up

Sales Down, Prices Up

Home sales continued their downward trend during the heart of the summer selling season, according to the latest sales numbers from the Illinois Association of REALTORS®.

The good news though, is that those Chicago condominiums and single-family homes that do sell this summer are fetching higher prices.

According to the REALTORS® association, the city of Chicago saw 2,664 home sales in July of this year, down 8.2 percent from the same month one year earlier. In July of 2012, the city of Chicago saw 2,902 home sales.

On the positive side, the median price of homes sold during July in Chicago rose to $270,000. In July of 2013, those homes that sold in the city fetched a median sales price of just $250,000, or 8 percent less during the same month this year.

The median price is not to be confused with the average home sales price. The median price is that price at which half of all homes sold for a higher amount and half sold for a lower figure. In July, half of all Chicago homes sold for less than $270,000, while half sold for more than that amount.

This is not a new trend in the city. Housing sales have been slowing for months while median prices have been on the rise. If you’re trying to sell a house, it’s necessary to work with an educated REALTOR® who can market your home to the widest pool of potential buyers. A REALTOR® will ensure you receive a fair price for your Chicago condo or single-family home.

And if you’re buying? You need a REALTOR® to make sure that you don’t overpay for a home. The inventory of available single-family homes and condos in Chicago is tight today. The right REALTOR® can help you locate your dream home during times of tighter inventory, and will make sure you pay the right price.

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Crain’s Conclusion: Plenty of Positives in Today’s Chicago Housing Market

Crain’s Conclusion: Plenty of Positives in Today’s Chicago Housing Market

Crain’s Conclusion: Plenty of Positives in Today’s Chicago Housing Market

Crain’s Chicago Business recently attempted to sum up the current state of the Chicago housing market. Crain’s conclusion? It found four signs that the Chicago housing market was in solid shape and a potential red flag that future problems might await.

First, the good news. Crain’s reported that in June non-distressed homes — homes that were not sold through the foreclosure or short sale processes — accounted for nearly 78% of all the home sales in the Chicago region. This is the highest that this figure has been for at least 3.5 years, according to the Crain’s story.

Don’t believe that the region is free of its foreclosure problems. As the Crain’s story says, Illinois is still struggling with the 3rd highest foreclosure rate in the country. But the high percentage of non-distressed home sales in June is certainly a good sign.

Crain’s also reported that Chicago-area homes are taking less time to sell. In June, homes in the area sold in an average of 71 days, according to Crain’s, about 25 days faster than during the same month one year earlier. And back in 2011, it took Chicago-area residents an average of 180 days to sell their properties.

In more positive news, the rate at which local home prices are appreciating is slowing. That might sound like bad news. But as Crain’s explains, no one wants to see housing prices rise too high too quickly. That happened before, and it led to the housing crash that started in late 2006 and early 2007.

Finally, the number of home sales in the Chicago area is on the rise again, Crain’s said. In June, the nine-county Chicago area saw 8,801 home sales. That was up 10% from the 7,998 homes sold in June of 2013, according to Crain’s.

The news, though, isn’t all good. Crain’s said the number of homes available for sale in the Chicago area continues to be too low for demand. That is making life difficult for potential buyers who are struggling to find homes in the most desirable of Chicago neighborhoods.

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