Chicago real estate, living and neighborhood perspective

Moving Forward

By Sherwin Sucaldito on May 19, 2010

Downtown builders sold 256 condos and townhomes in the first three months of the year, up from 148 in the fourth quarter and 55 in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based real estate consulting firm.

Sales have been spurred from the recent tax credit, which help sales in entry to mid level housing.  In addition, many developers have discounted pricing significantly, attracting home buyers into the market.

565 W. Quincy St. in the West Loop led the market with 59 sales in the quarter.  The sales of the development is a joint effort between Chicago based Belgravia and @properties.  Other developers have decided to rent in lieu of selling in current environment.

There’s still inventory that needs to be sold, allowing buyers who missed the deadline to still find a good deal.  Rates are low, but many officials worried that this will cause a bubble.  Distressed sales and auctions are still a viable option, but could be stressful as you compete with investors and cash ready buyers, watching foreclosure notices.

Job growth and ability to qualify for loans seem to be the biggest concerns for buyers I speak to.  Independent contractors / business owners are having a difficult time qualifying for a loan.  A conversation with a bank a few weeks ago asked that independent contractors show long-term project commitments at time of loan, even if previous engagements could satisfy annual financial needs.

We still have yet to see how this will affect the upper end of the market.  The tax credit was very nominal in this segment, instead aggressive pricing helped spur sales.  With the recent sale of one of the units at Elysian in the Gold Coast for $7.25M (plans to resell for $10M+), there could be signs of recovery.  Buyers have closed on 31 of the 51 condos, and another 15 are under contract according to Mr. Pisor, president and CEO of Elysian Worldwide LLC.

Sherwin is a REALTOR® in the Chicago & Suburban area with @properties. Questions can be forwarded to Sherwin Sucaldito

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”Moving Forward” by Sherwin Sucaldito is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at Realty Evolved

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