South Shore Property Values – Chicago Real Estate
Now let’s take a look at Chicago’s South Shore neighborhood.
Like everywhere else, the real estate meltdown has really hit
South Shore hard.
In my opinion, South Shore is very undervalued right now.
Buying real estate in South Shore should be a great long term value play.
This neighborhood has a lot going for it. For one, it is very close to the lake.
So this is lakefront property selling at prices from 15 years ago.
Also, there are big development plans in the works for this neighborhood.
A whole new lakefront community is being planned. It will be near 83rd and South Shore Dr.
It may take 10 to 15 years for it all to come to fruition though (see an artist rendition below).
This neighborhood has plenty of shopping and it is close to the
Metra Train and public transportation.
It is important to note that two distinct markets have emerged in most of Chicago.
A low-end market, and a high-end market.
Low-end market: Also known as distressed sales. These include foreclosures and
short-sales. These properties usually need extensive repairs.
These are priced very low, usually under $50K.
High-end market: Recently rehabbed properties. These properties have granite counters,
hardwood floors, custom cabinets, stainless steel appliances, etc.
These are priced much higher, usually starting at $150K.
Also, the availability of financing is a major influence on selling prices. If a property can
not be financed, the selling price will generally be much lower than its financed counterpart.
You see this a lot with all of the low priced condos out there. Condos are very difficult to finance
right now. If the current association is underfunded, you can’t get financing. This phenomenon is reflected in
the depressed selling prices for condos (see below).
But that’s enough of the small talk and real estate ‘mumbo jumbo’, let’s get down to the numbers.
This analysis is based on MLS Data for the 6 month period ending SEP-23-2011
SOUTH SHORE SINGLE FAMILY HOMES:
2 BEDROOMS: 2 homes sold. Average price = $20K
3 BEDROOMS: 17 homes sold. Average price = $94K
4 BEDROOMS: 17 homes sold. Average price = $109K
5+ BEDROOMS: 4 homes sold. Average price = $194K
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SOUTH SHORE CONDOS:
1 BEDROOM: 6 condos sold. Average price = $35K
2 BEDROOMS: 19 condos sold. Average price = $36K
3 BEDROOMS: 20 condos sold. Average price = $33K
4 BEDROOMS: 19 condos sold. Average price = $27K
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SOUTH SHORE MULTI-UNIT:
2 FLATS: 13 properties sold. Average price = $95K
3 FLATS: 10 properties sold. Average price = $86K
4 FLATS: 2 properties sold. Average price = $37K
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SOUTH SHORE MULTI-FAMILY 5+ Units:
6 unit building: 3 sold. Average price = $109K
9 unit building: 1 sold. Average price = $100K
10 unit building: 1 sold at $40K (Needed total rehab)
20 unit building: 1 sold at $300K (NOI = 68K)
68 unit: 1 sold at $400K (Needed total rehab)
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SOUTH SHORE RENTALS:
Studio…. 6 rented… Average Rent = $534
1 Bedroom…. 22 rented… Average Rent = $669
2 Bedroom…. 22 rented… Average Rent = $948
3 Bedroom…. 18 rented… Average Rent = $1,158
4 Bedroom…. 5 rented… Average Rent = $1,380
5 Bedroom…. 18 rented… Average Rent = $1,479
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Well, there you have it. Another informative analysis done by yours truly.
If you are thinking about buying, renting, or selling in the South Shore
neighborhood, this should give you a good idea of current market values.
If you have any questions, or need advice, please feel free to contact me.
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
EQUAL HOUSING OPPORTUNITY
(pun intended)