Why You Shouldn’t Wait to Buy Property in Chicago
Prices are Increasing
Though Not as Much as the Balance of the U.S.
(There are still values to be found!)
Rents are going up
Interest Rates are Increasing
More support for Mortgage Increases…
Inventory is increasing,
so you have lots of housing choices today!
To Buy Real Estate In Chicago…
All of Chicago real estate is crazy right now – buyers are out there in droves…
This weekend, I had buyers who put in an offer on a property they liked – they were 1 of 5 offers! No, they didn’t get it – someone overpaid. Let’s hope they have a large down payment, because the property likely won’t appraise out.
Condo Sales – Median Sales Prices
Here are median sales prices in my Primary Market Area (see map of it below)…
There is only a 2.9 month supply of homes. Remember, a 6 month supply is a BALANCED market – neither a buyers’ nor sellers’ market. This is definitely a sellers’ market!
# Condo Sales – Homes Sold
The number of homes sold is at a 10 year high!
Market Time (Days) for Condos
And, as you would guess, the market time is LOW LOW LOW – 27 days on average.
% Sales Price of (Last) List Price
Yes – properties are selling for almost list price! Here, we’re looking at properties between $250,000 and $550,000…
They’re selling for 98.9% of list price — and that’s a median number — many are selling OVER list price!
What does all this mean for you?
For Condo Home Sellers –
If you are on the market, but you don’t have an offer, something is very wrong. Call me and let’s move forward!
If you are thinking of going on the market, you need someone who can navigate through this market- getting you
- the highest price possible,
- with no appraisal/loan problems,
- with a buyer that doesn’t get cold feet!
There are definitely tactics to do this – give me a call and I’ll explain how we can accomplish this!
If you own a condo, now may be the time to cash in – explore your options… call me today!
For Condo Home Buyers –
You MUST work with someone who can guide you –
- Don’t overpay just because the market is busy!
- Be the first in a newly listed property!
- Work with someone in the Top Agent Network, who uses the MRED Private Listing Service, and networks with colleagues to find new properties before others!
- Learn how to write winning offers and negotiate to your best advantage!
One of the many services I offer is the Home Search Alert-
You’ll get an email within 15 minutes of a new listing hitting the MLS.
Be the first to know what’s available… let me set that up for you today!
Typically, the Chicago Real Estate spring market kicks off on Super Bowl Sunday.
This year, however, buyers have been out in droves since mid-January.
Today, the activity is off the charts!
The Real Estate 606** Top Producer group, of which Anne is a member, has been strategizing about ways our buyers and sellers can take advantage of this situation. “How to take advantage of Chicago’s Hot Real Estate Market” will be the topic of the next post.
Let’s look at just how busy the market is:
A “healthy” market is defined by lenders as a 6 month inventory of homes available for sale.
Right now, in Anne’s primary market area,
there is only a 3.1 month inventory –
the LOWEST IN RECENT HISTORY!
RISMedia just published the Realtor.com HOTNESS index –
the number of days on the market for real estate properties.
How HOT is Chicago’s Market?
How many days does it take to sell?
This chart shows the # of days between the date the property was listed and the date a contract was agreed upon. The median number of days between list date and contract is
What is this HOT real estate market doing to Chicago Sales Prices?
Sales prices are increasing rapidly!
- We’re seeing multiple offers that exceed listing prices.
- Sometimes, properties are selling without even being listed – either via agent to agent word of mouth, or via systems like MRED’s private listing service or Top Agent Network (TAN), of which I’m a member.
Buyers are having difficulty finding and acquiring property…
- Inventory is so low – there are not as many choices as in a typical Chicago real estate market
- Buyers have to act quickly in a fast paced real estate market – this can be frustrating
- Buyers who aren’t working closely with a real estate agent just won’t be able to find the same options as those who rely solely on online listing sites (often out of date and incomplete)
What does this mean to you?
More than ever, it’s critical that buyers and sellers work closely with a real estate agent who has the experience and expertise to guide them.
For Sellers, your expert real estate agent will know how to:
- Set the right listing price – not underpricing your home and thereby “leave money on the table” ,
- Price your home not so high that appraisers can’t support the price and the buyers fail to get the loan,
- Use a “Hot Real Estate Market Action Plan” that creates excitement, brings all buyers in quickly, and yields a quick, high priced offer
- Recognize buyers’ remorse, buyer pre-approvals you can count on, and buyers tying up properties while they “make up their minds”
For Buyers, your expert real estate agent will know how to:
- Educate you so when the opportunity presents itself, you are comfortable enough to act,
- Find the best property – via TAN, Private Listing Network, the MLS, or word of mouth,
- Make your offer stand out from the pack,
- Ensure you don’t overpay and knows how the appraiser will evaluate the home’s value, and
- Will provide energy, persistence, and determination to help you achieve your goals.
Do you want to buy or sell but aren’t sure where to start?
Contact Anne and let her guide you!
This is a bit of a macro view of the Chicago Real Estate Market, but I think it’s an interesting comparison to the chicago real estate, Illinois, and the nation.
Chicago Real Estate Market?
Basically, from the South Loop/Near South Side to Devon, including areas just west of the Kennedy Expy, Forest Glen, and Irving Park.
Chicago Real Estate Market Trends
2008 to Today
The following market trend charts are for both single family and “attached” properties (condos, townhomes, co-ops).
Median Sales Price
Here is an interactive chart of what Chicago Real Estate median sales prices have done since 2008…
Number of days on the market, from listing to contract…
How many months worth of housing stock is available at any point in time? Lenders use 6 months as the benchmark for a “stable market”. Under 6 months of inventory is considered a “sellers” market.
% Sales Price to LAST List Price
This may or may not be the ORIGINAL list price. Once the property reaches the RIGHT list price, it’s currently selling for 97.8% of that last price.
Since April, 2013, over 10,000 homes have been sold in the marketplace. This is a very strong number!
For information on your neighborhood, or to get a quick pinpoint market analysis,
contact Anne today!
Baird & Warner
Chicago single family home prices-
where have they been and where are they going?
The following chart shows median home prices for the city of Chicago — 2008 to 2014
The inventory of homes has dropped to almost nothing – this puts pressure on prices, causing them to rise. A “steady” market is 6 months of inventory. It’s neither a buyer’s market nor a sellers’ market at 6 months. Today, it’s a SELLERS’ MARKET!!
Here’s the Chicago inventory of homes (in months):
And, in raw NUMBER of sales, the units of single family homes sold in Chicago has risen dramatically:
Would you like to see these charts for your neighborhood?
Would you like to see the Market Insights Report for your area?
and ask for the report to be emailed to you –
one time or automatically each month!
StreetAdvisor Question this week:
Can a couple live affordably in Chicago’s Loop?
In order to answer the question, we need to know how much it costs to live there, and then based on the current interest rates, determine monthly costs. From that, we can figure out how much income one needs to purchase this mythical condo.
If the couple lives in a One Bedroom condo in Chicago’s Loop, Near North, or South Loop Neighborhoods….
I did research on 1,2, and 3 bedroom condos in Chicago’s Near North (8008), Loop (8032) and Near South (8033) neighborhoods, and I discovered the following:
- One bedroom sales have increased between 20% and 36% in the 3 neighborhoods
- Average taxes range between $ 3364 and $ 3723 per year.
- Average assessments range between $ 445.39 (South Loop) to $ 590.26 in the Gold Coast.
Cost to Live in a One Bedroom Condo
Let’s determine the monthly cost of one of these one bedroom condos.
Purchase Price: $ 230,000
Down Payment: $23,000
Interest Rate: 4.5%
Debt Ratio 28% of Gross Income
Monthly Payment Resulting from these assumptions:
Principal and Interest: $ 1841
Taxes: $291.67 (or, $ 292)
Gross Monthly Payment: $1841
Annual Tax Savings for Federal and Illinois: $3254 (from Bankrate.com)
Net Monthly Payment (not including property tax savings): $1569
What do you have to Earn To Afford This Purchase?
Lenders usually allow for more debt than this, but when I first became a Realtor in 1987, the 28% rule was always followed. (Part of why we got into trouble in 2008 was our relaxing of this 28/36 debt ratio.)
28% debt ratio means that the gross monthly payment can be no more 28% of the gross monthly income.
For this example, $1841 / 28% = $ 6575 per month.
Annual Income Required: $ 6575 x 12 = 78,900.
Two Bedroom Condos –
Loop, Near North, Near South
Three Bedroom Condo Prices –
Loop, Near North, Near South
Want to Learn More about condos in the Loop, Near North, or Near South Neighborhoods?
Are you ready to begin the first steps toward owning a condominium in Chicago?
Contact Anne Rossley
of Baird & Warner today!
What are the most expensive streets
in Chicago’s Lincoln Square Neighborhood?
Based on the MRED sales data over the last 5 years, 4 streets in Lincoln Square are known for their luxury properties:
Since 2007, 32 homes sold for over $800,000 on these 4 streets. Giddings had the most homes that sold over $800K (11), according to the Midwest Real Estate Data MLS service. Sunnyside had 9, averaging $1,364,117. Hamilton’s 6 averaged just over $1.3MM, while Wilson’s 6 averaged $1.1MM. Of all 32 properties, 8 were vintage homes (built before 1925), which were clearly the bargains- they averaged $1.0MM. Only 3 (on these 4 streets) sold for over $1.0MM.
Tour The Most Expensive Lincoln Square Streets
See photos and get property information by selecting one of the following links:
pdf version tablet version
| || ||Closed Date||Listed||Sold||SF||# Rms||Beds||Baths||Yr Blt||Lot Dim||Recent Rehab
|2012||Giddings||8/8/13||$1,050,000||$1,010,000||3900||9||4||3.1||2001||30 X 123||No
|2019||Giddings||5/25/12||$1,795,000||$1,795,000||5100||12||7||4.2||2012||37.5 X 124||No
|2129||Giddings||7/21/08||$1,595,000||$1,497,500||4950||12||5||4.1||2008||37.5 X 123||No
|2152||Giddings||2/1/11||$1,795,000||$1,675,000||5100||13||7||4.2||2010||37.5 X 124||No
|4439||Hamilton||7/16/13||$2,689,000||$2,589,000||NR||13||6||3.2||2008||37.5 X 177||No
|4913||Hamilton||7/9/13||$999,000||$975,000||4700||10||3||3.1||2005||30 X 117||No
|4934||Hamilton||8/3/13||$1,299,900||$1,206,500||4600||12||6||4.2||2008||30 X 120||No
|2104||Sunnyside||1/30/13||$1,395,000||$1,367,500||4100||12||4||3.1||2012||35' X 100'||No
|2109||Sunnyside||10/4/13||$1,280,000||$1,280,000||NR||11||5||3.2||2013||26 X 125||No
|2132||Sunnyside||9/1/09||$899,000||$860,000||NR||12||5||3.1||1886||50 X 100||Yes
|2161||Sunnyside||9/18/09||$1,862,500||$1,862,500||5500||13||6||4.2||2009||37.5 X 125||No
|2310||Sunnyside||1/29/10||$1,249,000||$1,301,000||NR||11||5||3.1||2007||24 X 125||Yes
|2120||Wilson||9/16/10||$1,379,000||$1,310,000||4300||11||5||3.2||2005||37.5 X 125||No
|2125||Wilson||1/30/09||$899,900||$847,500||NR||11||4||2.2||UNK||35 X 135||No
|2174||Wilson||7/11/08||$1,175,000||$1,087,500||NR||13||5||3.1||2007||37.5 X 125||Yes
|2174||Wilson||3/22/11||$1,050,000||$825,000||5500||14||4||3.1||1901||37.5 X 125||Yes
|2600||Wilson||6/7/11||$1,250,000||$1,200,000||6000||12||5||5.1||1920||45' X 120'||Yes
What Homes in Lincoln Square Sold for the Most Money?
I shared the streets that had the most pricey homes,
but what are THE MOST EXPENSIVE HOMES?
See the Most Expensive Lincoln Square Homes
See photos and get information – select one of the following links:
Pdf version Tablet Version
| || ||Listed||Sold||Date||ASF||# Rms||Beds||Baths||Yr Blt||Lot Dim||Recent Rehab
|4439||Hamilton||$2,689,000||$2,589,000||7/16/13||0||13||6||3.2||2008||37.5 X 177||No
|2161||Sunnyside||$1,862,500||$1,862,500||9/18/09||5500||13||6||4.2||2009||37.5 X 125||No
|2019||Giddings||$1,795,000||$1,795,000||5/25/12||5100||12||7||4.2||2012||37.5 X 124||No
|2131||Agatite||$1,875,000||$1,775,487||8/31/11||5100||12||7||4.2||2011||37.5 X 124||No
|2152||Giddings||$1,795,000||$1,675,000||2/1/11||5100||13||7||4.2||2010||37.5 X 124||No
|2129||Giddings||$1,595,000||$1,497,500||7/21/08||4950||12||5||4.1||2008||37.5 X 123||No
|2104||Sunnyside||$1,395,000||$1,367,500||1/30/13||4100||12||4||3.1||2012||35' X 100'||No
|2120||Wilson||$1,379,000||$1,310,000||9/16/10||4300||11||5||3.2||2005||37.5 X 125||No
|2310||Sunnyside||$1,249,000||$1,301,000||1/29/10||0||11||5||3.1||2007||24 X 125||Yes
|2109||Sunnyside||$1,280,000||$1,280,000||10/4/13||0||11||5||3.2||2013||26 X 125||No
|2145||Eastwood||$1,299,000||$1,250,000||6/28/10||4600||11||4||4||2004||37.44 X 121.55||No
|4934||Hamilton||$1,299,900||$1,206,500||8/3/13||4600||12||6||4.2||2008||30 X 120||No
|2600||Wilson||$1,250,000||$1,200,000||6/7/11||6000||12||5||5.1||1920||45' X 120'||Yes
|4420||Campbell||$1,199,000||$1,150,000||10/6/08||0||10||4||3.1||2007||30 X 125||No
What’s for Sale Now in Lincoln Square?
As of this writing, there are 4 homes for sale over $800K, ranging in price from $899,000 to $ 1,199,000.
It’s early in the spring selling season, so to get immediate alerts when new listings become available, sign up for a Lincoln Square Home Search Alert by selecting this link:
Looking for a real estate agent who’s an expert in Chicago’s north side neighborhoods?
Contact Anne Rossley of Baird & Warner.
As a StreetAdvisor contributor, I have been considering how to answer the question,
This is a loaded question, indeed!
Here are the reasons I CANNOT answer the question:
- What’s “upper middle class”? Certainly, the cost of living in Chicago is higher than the cost of living where I grew up — in Bloomington, Illinois. We’re not Manhattan, however. Chicago has 77 neighborhoods, or communities, all with their own charms.
- What’s “best” ? Best in terms of location? Amenities? Value? What’s best for the young professional right out of college may not be best for a family of 5 with 3 kids in elementary school, nor the same for empty nesters in their mid 60’s.
Here’s what I CAN answer:
- Average (mean) cost of single family homes by neighborhood,
- Published demographic information by neighborhood
- Amenities for each neighborhood
Relative Prices of Some Chicago North Side Neighborhoods
For purposes of this post, I’m including a few examples of neighborhoods in which I’m most familiar. This is NOT an all-inclusive list of neighborhoods in Chicago. The chart below shows average (mean) prices for single family homes – resale only (not new construction) for
As of today’s writing, the average prices are:
Lincoln Park $1,350,000
North Center $875,000
The prices aren’t surprising – essentially, the closer the neighborhood lies in relation to the loop, the more expensive the homes.
Micro-Neighborhoods in Chicago
These neighborhoods include many sub- or micro-neighborhoods. Sales prices within each neighborhood can vary greatly, depending on many factors (proximity to public transportation, conformity, school district…)
For example, Edgewater has multiple micro-neighborhoods, delineated by block clubs, as seen in this map:
There are so many neighborhoods, micro-neighborhoods, and even preferred areas within the micro-neighborhoods that giving an average price for Edgewater is somewhat misleading. I live, for example, in Lakewood Balmoral (# 16 above). This block group, the Lakewood Balmoral Historic District, is part of Andersonville, which is part of the Edgewater Community. To give an average resale price for all areas above is not at all indicative of the values within LBRC (or #16).
Here are the differences:
| ||# Properties Closed||# Days on Market||Median Sales Price
|Lakewood Balmoral Historic District||11||67||$940,000
Beyond Home Prices – Other Criteria for Choosing a Neighborhood
So far, we’ve just talked about average prices.
Other things to consider when choosing a “best” neighborhood:
- Crime by block, neighborhood, police beat, community – See Clear Map – Select this link
- Elementary Schools – See my website to learn more about Chicago Elementary Schools and specifically, CPS Elementary School Districts on the city’s north side.
- Proximity to Public Transportation/Highways – See Map Below and click on photo to pull up website.
Having said all this, I find there’s no way to easily answer the question, “What is the best upper middle class neighborhood in Chicago”.
This post is just a long-winded way of saying that it’s critical that buyers work with an experienced Realtor who’s familiar with the neighborhoods AND MICRO-NEIGHBORHOODS in Chicago, who can help clients best understand their priorities, and who can then provide all options that meet those needs.
East Ravenswood Historic District was a popular neighborhood in 2013!
East Ravenswood is located in 2 Chicago Communities – Uptown on the north and Lakeview on the south. Because it straddles 2 communities, getting concise market data is a challenge.
The graph below depicts single family home sales over the last 3 years for each of the communities– both neighborhoods have remained strong, but when looking at each one separately, the statistics are very different.
Combined Statistics for the
East Ravenswood Neighborhood
When looking at ONLY DETACHED homes (old and new) in the quadrant bounded by
– 4000-4800 North, and 1400-1900 West –
one can see a more accurate representation of the homes in this district:
click on the photo above to download the pdf file
The average sales price was 96% of the list price of the home when the contract came in, and it took 108 days on average to sell a home in this neighborhood.
The average 3 bedroom sold for just over $ 650,000 and the average 4 bedroom closed at $ 1,054,000.
Interested in seeing what’s available for sale
in the East Ravenswood Historic District?
Select this link to see TODAY’s list of available homes.
East Ravenswood Homes Sold in 2013
Get a photo tour of these homes – select a link below
Home Tour- pdf format
Home Tour – Tablet Format
The chart below lists the HISTORIC homes that sold in East Ravenswood in 2013
|Stat||Street #||Str Name||List Price||Sold ||SF||# Rms||Beds||Baths||Gar Spaces||Days||Yr Blt||Lot
|PEND||4341||Greenview||$695,000||NR||7||4||1.1||2||5||1902||25 X 120
|CLSD||1440||Pensacola||$1,189,000||$1,124,500||4050||12||5||3.1||2||285||UNK||25 X 121.75
|CLSD||4335||Greenview||$789,000||$769,000||NR||8||3||2.1||2||15||1900||25 X 120
|CLSD||1700||Wilson||$699,000||$680,000||NR||11||5||1.2||2.5||245||1909||45 X 108
|CLSD||1443||Pensacola||$825,000||$820,000||NR||9||4||3.1||2||8||1901||125.25 X 25
|CLSD||4031||Hermitage||$1,029,000||$1,089,000||4642||11||4||3.1||4||6||1900||30 X 165
|CLSD||1466||Pensacola||$820,000||$815,000||NR||7||3||2||0||42||UNK||37.6 X 121.9
|CLSD||1409||Berteau||$1,199,000||$1,169,500||NR||10||4||3.1||2||74||UNK||25 X 125
|CLSD||4115||Greenview||$1,387,000||$1,387,000||NR||11||4||4||2||1||1901||25 X 161
See a map of all Chicago Historic Districts by selecting this link: Chicago Historic District Maps on Google
The most frequently requested property in Chicago is probably the 3 bedroom condo — and outdoor space of some kind is usually a “must have” for today’s buyers.
This post includes information for 3 bedrooms in 3 Chicago neighborhoods – Near North (including Streeterville and the Gold Coast), the Loop, and the Near South Side (South Loop).
Three Bedroom Sales Statistics
Three bedroom condos in the South Loop, Loop, and Near North are listed (on average) at $ 1.3MM, and they range in price from $ 335,000 to $5,900,000. There are currently 271 condos for sale in these neighborhoods, and 336 have sold over the last 6 months — the inventory is low right now!
The properties that sold were under contract in an average of 97 days, and they sold for 96% of the listed price at the time of contract. (Many had price reductions during the listing — the sales price was 89% of the ORIGINAL listed price.)
Click Here for Condo Sales Data for the Loop, Near North, and South Loop Neighborhoods
# Months Supply of 3 Bedroom Condos
Average Sales Prices of 3 Bedroom Condos
See What’s for Sale Today…
Select the appropriate link below and see what 3 bedroom condos are listed now:
Best 3 Bedroom Condos for Sale
$500,000 – $800,000
While 3 bedroom condos average over $1MM in these neighborhoods, I’ve found some terrific properties for sale between $500,000 and $800,000. Below are my top choices in what’s available today.
Take an online tour of these homes when you select this link.
Make an Appointment to find your Chicago Condo!
Contact Anne Rossley of Baird & Warner
| || ||Unit|| ||List Price||SF||Days||RMS||BR||BA||EXP||Incl?