July 28, 2008 - In the real life game of Chicago real estate, Trump may be trumped by flippers who are aggressively marketing their hotel condo units at the high-rise. Prices on these units are sometimes as much as 30% lower than what similar units are being sold for by the developer, Crain’s reported. Appraisal Research Counselors noted that despite healthy initial sales at Trump Tower, the number has since remained at about 70%, and a developer usually takes his profit from the last 20% of units sold, so it could potentially cut into the profit margin if those final units don’t sell or have to be reduced.

There are a minimum of 34 hotel condos for sale right now by investors. One of those is a one bedroom suite listed at $1 million, while the developer is selling them for $1.5 million. Another investor has a two bedroom unit for sale for $2.6 million, and trump is asking $3.2 million for a similar one.

Many investors bought condos and hotel suites at Trump Tower at pre-construction prices, so they got a relatively good deal. And as the 92 story tower progressed, Mr. Trump raised those prices. To move those last units, he may have to lower them again because his range of $1.3 million to $1.6 million for the one bedroom units versus resale prices starting at $879,000 will be difficult to compete with.

According to property records, one flipper bought a studio unit for $438,000 and sold it for $890,000. Another investor paid $1.4 million for a two bedroom and resold it for $1.8 million. Those numbers don’t account for the added expense of finishes though, which would be about $45,000 for the studio and $135,000 for the two bedroom, according to the article.

Ivanka Trump was quoted as saying she wasn’t concerned about the secondary market and attributed the lower resale prices to investors “fallen on hard times.” But anytime you can make a decent profit is a good time to Sell your Chicago Condo.

Technorati Tags: Trump Tower, Chicago condo, Chicago real estate

July 27, 2008 - The overall sales statistics for the Chicago Loop show a marked increase in activity and prices in recent months.  According to data for the second quarter from the MLS, sales were up by 18 percent and prices rose by an incredible 67 percent.

However, these stats hide some interesting trends in the neighborhood.  Sales of the largest units were up the most during the second quarter, helping prices soar.  Sales of condos with three or more bedrooms were up 92 percent from the same period last year, while the average sales price for these units rose by 89 percent.

When we look at the smallest units on the market in the Loop, the reality is quite different.  Just 6 studio units were sold during the second quarter, a 75 percent drop in sales from the same period last year.  However, prices were still up for these units, rising by 19 percent.  Low sales of studio units doesn’t mean there isn’t a number of choices for buyers.  There are currently 46 studio units listed on the market.  At the current pace of sales, the area has a market supply of 23 months for studio units, a staggering number when we consider that anything over a 6-month market supply is considered a buyer’s market.

We’ve worked to put together the most comprehensive and current list of Chicago Sales Stats available online.  Check out the latest numbers for neighborhoods around the city today.

Technorati Tags: Chicago Real Estate, Chicago Condos For Sale, Loop Condo Sales

July 26, 2008 - If you’re shopping for a single family home on the Northwest Side, then you may want to take a look at The Residences of Old Irving Park from C A Development. It may not qualify as the deal of the day, but they are taking off $75,000 from the price on four of the residences there, according to a press release in the Tribune. The discount is in effect if you close on one of the homes in the next sixty days.

The residences vary in reduced price from $624,900 to $724,900 and square feet ranges from 3,080 to 4,126. One two story home called the Greenwood has four bedrooms, 3.5 baths, a brick exterior, two fireplaces, roof deck plus front porch and a two car garage. This home come with $100,000 in upgrades thrown in. The other homes are similar in size and details, all with fireplaces, porches and decks.

If you’re more into Chicago condo lofts, then Prairie District Lofts on South Indiana Avenue still has units available. Kargil Development is behind this Chicago real estate redevelopment that has turned a former century old building into traditional loft units. Once rental apartments, the condos are now renovated with exposed concrete, timbers, brick walls and new kitchens and baths. The lofts have from one to three bedrooms and one to four baths and prices range from the $200,000 range on up to the low $500,000s. If you are either creative or adventurous enough, you can also purchase one of the units as is and move right in. Otherwise it will be at least a couple of months before these Chicago Lofts are ready.

Technorati Tags: Prairie District Lofts, Chicago condo, Chicago real estate