Homes Sales Jump by Crains

Local home sales jump in second quarter compared with 1Q

By: Staff Aug. 11, 2009

(Crain's) — Chicago-area home sales jumped almost 68% in the second quarter compared with the first quarter, according to the Illinois Assn. of Realtors. Local sales fell about 15% compared with the second quarter last year.

“We are moving through inventories and that’s a good sign for the Illinois housing market,” Pat Callan, president of the association and owner of Realty Executives Premiere in Wheaton, said in a release Tuesday from the association. “Year-over-year sales are still lower, but one promising trend is the rate of decline has slowed in recent months and is now at a pace last seen in the third quarter of 2007.”

In the nine-county Chicago region, 17,622 homes were sold in the second quarter, up from 10,507 sales in the first quarter. Chicago-area sales were down 15.4% from 20,827 in second-quarter 2008, the Realtors group said.

In the city of Chicago, second-quarter sales rose 65.2%, to 4,947, compared with the first quarter. Sales fell 21.3% compared with the same quarter last year.

The Chicago-area median price — where half the homes sold for more and half sold for less — was $201,050 in the second quarter, up 7.2% from the first quarter but down 19.6% from the second quarter of 2008.

In the city, the median price rose 7% to $230,000 compared with the first quarter but was down 25.8% compared with second-quarter 2008.

Statewide sales rose 61.8% in the second quarter compared with the first quarter and fell 16.4% from the second quarter last year.

The Realtors group's sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

128 East Maple Street, Hinsdale, Price Drop

Courtsey of MLS Connect

This home has another price drop in persuant of a short sale. It started out listed for $1,200,000. and is now dropped to $975,000.00. It is a 4 bedroom, 4.1 bathroom home, built in 2006, taxes are $6820.00. The house sits on a lot size of 50x115. This home is lovely and should sell soon. It is listed with David Ricordati, of ERA Jensen and Feinstein Realty. Plese call 630-464-2633 to see this home.

909 Allmen Hinsdale - A Deal After the Price Drop?

Courtsey of Connect MLS

This is a 5 bedroom, 4.1 Bathroom home on a 85x132 lot. The taxes are $18,256.00. This is a newer home, built in 2003. It started off listed for $1,895,000.00. Since then, the price has dropped to $1,295,000.00. I will be watching this listing to see if the market sees this as a bargain to purchase. I think this property is still overpriced in the current market. For the current list price, the lot size is very small.Listed with Dawn McKenna,Coldwell Banker. Call
630-464-2633 to see this home.

222 E Pearson filed for Foreclosure

Crain’s reports that PrivateBank & Trust Co. has filed to foreclose on the 219-unit conversion Pearson on the Park at 222 E. Pearson in the Gold Coast.

From Crain’s:

The bank alleges that the developer of the project at 222 E. Pearson St., an entity formed by Ganesan Visvabharathy, missed its February loan payment and failed to pay off the $6.8-million loan balance when it came due in March.

Attempts to reach Mr. Visvabharathy, who has a Ph.D. and is better known as Dr. Vish, were unsuccessful. The developer paid $46.6 million for the building in July 2005, when it was an apartment building. He borrowed $52.5 million from Hypo Real Estate Capital Corp. and $7.5 million from American Mortgage Acceptance Corp. to finance the purchase and his plan to convert the apartments to condos.

Those loans came due in August of 2007, and he refinanced the development with a new $17-million loan from PrivateBank. The loan carried interest of the prime rate plus 1%, or 7.25%, whichever is greater, according to a document included with the foreclosure suit, which was filed this month in Cook County Circuit Court.

To secure the loan, Dr. Vish pledged 55 acres of undeveloped land in downstate Mount Vernon and signed a personal guarantee. The loan originally matured last November but was extended to March.

The developer asked for another extension, to March 2010, a request PrivateBank had agreed to consider based on certain conditions, according to a letter the bank’s attorney sent Dr. Vish in April. Now, however, the bank just wants its money back.

Pearson on the Park is 80% sold but Crain’s reports that just 3 units have sold this year.

In recent months, the developer has cut prices in condos at Pearson on the Park by an average of 13%, but it’s unclear whether that will be enough to goose sales in the building. Downtown condo converters sold just 17 units in the first quarter, down from 62 in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based consulting firm.

Streeterville condo conversion faces foreclosure [Crain’s Chicago Business, Alby Gallun, July 29, 2009]

High End Homes Sale are Down

The Wall Street Journal discussed the lack of sales of high end homes today and compares Schaumburg and Kenilworth (and the north shore.)

While it doesn’t mention Chicago’s high end home market, I think it’s relevant enough to quote here.

In the article, one seller in Northfield cut her price by a million dollars and then the only offer she received (and rejected) was for under her 1999 purchase price. The seller ended up renting it out instead.

Will Homedelete be right? Will we go back to 1999 prices?

Sales were up 41% in June in Schaumburg where there was a median income in 2007 of $65,000. Bidding wars have broken out.

“I can’t even tell you how many I’ve been in over the last two months,” says Joe Stacy, a local real estate agent.

But in Kenilworth, with a median income of $230,000, just 13 homes have sold this year leaving 65 more on the market.

“We’re extremely oversupplied,” says Sherry Molitor, a local real estate agent. “Sellers are struggling to realize that we’re back to 2001-2002 prices.”

In another example in the article, a Kenilworth owner bought a 5-bedroom Dutch colonial 5 years ago for $1.3 million using a 25% down payment obtained from selling two prior homes. The husband lost his job in December and took a lower paying one causing the owners to miss one mortgage payment in the spring.

They are now current but local real estate agents told the sellers they would be lucky to sell the house for $960,000, the amount owed on the jumbo adjustable mortgage.

“We’re considered either rich people who don’t deserve help or deadbeats who bought too much house,” says Kelli Kaborl, a 42-year old substitute high school teacher.”I don’t see Washington prepared to deal with us.”

High End Homes Frozen Out of Budding Housing Rebound [Wall Street Journal, Nick Timiraos and James R. Hagerty, August 3, 2009] [subscription required]

Price Reduction: 142 N Stough, Hinsdale

Courtesy of connectmls

142 N. Stough in Hinsdale has had its price cut again. It is listed as a short sale. This is a 6 bedroom, 7.1 bathroom home. It has a 3 car garage, was built in 2007, taxes are $14,338 and has a lot size of 80x220. The price was reduced from $2,999,000 to $2,499,000. I will be keeping on eye on this property.

Listed with North Shore Capital, O. Chura. Call 630-464-2633.

110 S Columbia Ave,Hinsdale

Photo from connect mls

This is another short sale in Hinsdale.
List price of $1,299,000 on 4/11/07.
Relisted for $1,117,000 on 11/7/08.
This began a long series if reductions over the several months bringing it down to $640,000. on 6/23/09.
It is currently under contract.
5 bedrooms, 4.1 bathrooms, 2 car garage, and basement, built 2003.