February 13, 2010 - Yesterday we told you about the rather dismal sales numbers for Chicago condos and townhomes in 2009. There is a bit of a bright spot in Chicago real estate for 2010 though, and that is the demand for apartments. With more developers and investors deciding to rent out unsold Chicago townhomes and condos, plus new apartment towers nearing completion, there will be a huge number of units up for lease this year.

As Appraisal Research Counselor VP Gail Lissener told Crain’s, “There will be intense competition for renters.”

Renters are still grabbing up downtown apartments though. ARC stated that there were 1,739 more units under lease at the end of 2009 than there were in 2008. That is the largest year-over-year increase that ARC has ever tracked, according to a Crain’s article.

But the upcoming glut of new apartments plus condos for rent could spell trouble for the rental market as well. About 2,234 new rental units spead out in six large projects will hit the market this year, according to the Sun Times. Those prokects include EnV, Alta at Ka Station and 555 W Kinzie.

ARC VP Ron DeVries told Crain’s that apartment occupancy rates could drop to 90% this year. But after 2011 there won’t be as many new apartments coming into the pipeline and both occupany and rental rates could be on the rise by 2013.

So renters of Chicago Apartments should be enjoying the same lower prices and more unit choices as Chicago condo buyers right now.

Technorati Tags: Chicago Apartments, Chicago Condos, Chicago Real Estate

February 12, 2010 - According to the latest numbers released from Appraisal Research Counselors, downtown Chicago condo sales were up slightly in the fourth quarter. The increase is attributed to Chicago real estate developers making deep price cuts to try and move unsold inventory. Crain’s reports that ARC numbers showed that 148 condos and townhomes were sold during October, November and December 2009. That is 56 more than were sold in the third quarter of 2009. There was also a net sales loss of 253 units in the fourth quarter of 2009.

ARC vice-president Gail Lissner was quoted in Crain’s as saying that buyers won’t start making purchases again until certain conditions fall into place. “They have to be convinced that the market has bottomed out and we’re going to see some price appreciation.”

In all, only 572 Chicago condos and townhomes were sold during the entire year of 2009. That number is even lower than total sales for 2008, which were 592.

The number of unsold condos and townhomes right now is about 3,000 units, which is less than the 4,000 units that were piled up at the end of 2008. ARC states that there will be 2,234 new downtown condos and townhomes completed this year though, which will only add to the oversupply.

It will be interesting to see what 2010 brings for sales of Chicago townhomes and condos. If you check the Chicago real estate listings you’ll see plenty of units available as well as price reductions. And if sales remain sluggish, you’ll probably see more of the same in the coming months.

Technorati Tags: Chicago Townhomes, Chicago Real Estate Listings, Chicago Condos

February 10, 2010 - Yesterday we told you about the future of Mod being in question due to a foreclosure suit. The first phase of this Chicago real estate development switched to rental and now there’s a chance the second phase might not be constructed. One of Mod’s developers, Steven Golovan of Graystone Development and Castlebar Enterprises is also having problems with another project, The Catalina. This 12 condo low-rise located on 2524 North Ashland Avenue is also under litigation from a $5 million foreclosure suit filed last April by Amcore Bank, according to a Crain’s article.

The article went on to say that Mr. Golovan had, “attempted a similar fix last spring,” on The Catalina before the foreclosure suit was filed in April ‘09.. This taken to mean that like Mod, the units at the Catalina were offered for rent when sales slowed. At last count, half of the units were under contract.

The so-called extra-wide Chicago condos at The Catalina were being marketed last year from the mid $400,000s to low $700,000s. The units had two to three bedrooms and baths with between 1,478 to 2,740 square feet of living space. The finishes were high-end with Jenn-Air and Bosch appliances, granite counter tops, walnut cabinets, wine coolers, steam showers in the baths, high-speed phones, custom built-in bookcases and a deck. Parking was also included in the purchase price.

The Crain’s article quoted Susan Tjarksen of Stabilized Asset Resources LLC as saying that sometimes the best option for developers is to rent unsold inventory.

“It at least stabilizes the asset. When the market comes back, there’s a good chance these rental tenants will buy. The goal is to keep these young tenants happy, so that they stay. It may not be the best exit strategy, but it may be the only exit strategy,” she was quoted as saying.

And if you are undecided about renting or buying, there are plenty of Rent to own condos in Chicago right now, so check out what’s available.

Technorati Tags: The Catalina, Chicago Condos, Chicago Real Estate