*Based on sales data from the MLS for JAN-01-2010 through JUL-20-2010
This report is based on sales data from the MLS for JAN-01-2010 through JUL-20-2010.
This is for zip code 60653 only. This zip code includes a few different neighborhoods.
It includes Bronzeville, Oakland, and the north half of Kenwood.
You will notice that there is a wide range of selling prices. This is because foreclosures
are still hitting the market at very low prices. But, at the same time, high end properties
are still selling. Sales prices are mostly determined by the condition of the property.
On the low end, you will have the foreclosures that require a total gut rehab.
On the high end, you will have the recently rehabbed properties and/or newer construction.
The average property will be somewhere in between. It will usually be in fair condition,
but it has not been updated or remodeled in several years.
So looking at the present market, and its wide range of prices, one may conclude that there
is a great opportunity to buy a bank owned property at a very low price, do a high-end
rehab, and put it back on the market a few months later for a much higher price.
Many investors have realized this opportunity and the demand for bank owned properties is high.
It is not uncommon for those properties to sell for 25% to 50% OVER asking price.
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SINGLE FAMILY HOMES
Overall: 31 Single Family Homes were sold in zip code 60653.
Prices ranged from $30,000 to $445,000. The average
selling price was $192,000
3 Bedrooms: 11 sold ranging from 60,000 to 415,000
Average selling price: $193,000
4 Bedrooms: 12 sold ranging from 30,000 to 445,000
Average selling price: $190,000
5 Bedrooms: 5 sold ranging from 65,000 to 430,000
Average selling price: $225,800
6 Bedrooms: 6 sold ranging from $41,000 to $301,000
Average selling price: $138,000
CONDOS:
Overall: 96 condos were sold in zip code 60653. Prices ranged from $2,000 to $329,000.
The average selling price was $97,000.
Studio: 1 sold for $33,000
1 Bedroom: 1 sold for $170,000
2 Bedrooms: 30 sold for prices ranging from $5,000 to $250,000
Average selling price: $79,000
3 Bedrooms: 54 sold for prices ranging from $2,000 to $329,000
Average selling price: $104,000
4 Bedrooms: 8 sold for prices ranging from $16,000 to $255,000
Average selling price: $91,000
5 Bedrooms: 8 sold for prices ranging from $179,740 to $250,000
Average selling price: $214,870
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MULTI-UNITS (Two to Four Units):
Overall: 27 multi-unit properties were sold in zip code 60653.
Prices ranged from $25,000 to $420,000.
The average selling price was $106,000.
Two Flats: 14 sold for prices ranging from $25,000 to $156,000.
Average selling price: $79,000
Three Flats: 13 sold for prices ranging from $29,000 to $420,000.
Average selling price: $105,000
Four Flats: 0 sold so far this year.
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MULTI-FAMILY (5 or more units)
6 Flats: 4 sold for prices ranging from $120,000 to $750,000.
Average selling price: $409,000
Note: Financing for commercial properties is a lot harder to come by these days.
Many commercial lenders are asking for a 25% to 30% down payment.
And most lenders are not allowing sellers to “hold paper”
(finance part of the sale by holding a secondary mortgage).
As a result, sales for multi-family properties are currently depressed.
For this multi-family analysis, I had to look at a couple of nearby areas in
addition to zip code 60653 (i.e. Hyde Park, Washington Park).
However, there are still investors in the market looking for high yield opportunities.
If you have a multi-family property, and it is currently rented and generating
positive cash flow, you definitely have a chance to sale your property.
You just have to offer it at a price point that allows a high return on investment
for the next owner. This doesn’t mean you have to give your property away.
It just means that investors that can buy right now are looking for a high return
on their investment.
Here’s a rough estimate of where you need to be right now with pricing in 60653:
Multiply your annual rental income times 6.5
For example: let’s say you have a 6 Flat and you are getting $1,000 per month
for each unit. Your monthly gross income would be $6,000 and your annual
gross income would be $72,000
6.5 x $72,000 = $468,000
$468,000 would be your estimated marketing price when you put your building on
the market.
This would be for a property that is currently generating income. If your property is
vacant, you will have to sell it for much less. (probably around $320,000)
Many of the six flats that did NOT sell this year had an average price of about $550,000.
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LAND:
Similar to multi-family commercial properties, the demand for land is currently depressed.
This is because land sales and new construction go hand in hand. Since there aren’t many
construction loans available right now, there is no need for developers to purchase land.
However, you will always have a few investors looking for good deals on land in desirable locations.
Two lots were sold this year. One was a standard residential lot. It sold for about $65,000.
The other lot was a much larger commercial lot and it sold for about $390,000.
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RENTALS:
The rental market in Bronzeville and zip code 60653 is booming! Over 400 units have been rented
so far this year. Here’s a summary of average rental prices:
1 Bedroom: $900
2 Bedrooms: $1,200
3 Bedrooms: $1,600
4 Bedrooms: $1,900
5 Bedrooms: $2,600
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If you would like a personalized market analysis for your property, please let me know.
I would be more than happy to prepare a FREE report for you. If you have
any questions about the Bronzeville Real Estate market, please call me at
773-469-4943. You may also send an e-mail to: mark@markkillion.com
And as always, if you know anyone that needs to buy, sell, or rent real
estate, please let me know. Your friends and family deserve exceptional
customer service. I am here to serve you!
Until the next time,
Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!
Visit me online: www.773property.com
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