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Hyde Park Real Estate – Condo Analysis – 3rd Quarter 2015

Hyde Park Real Estate – Rental Analysis – 3rd Quarter 2015

Let’s take a quick look at real estate values in Hyde Park Chicago.
Selling prices are up for studios, one bedroom, and two bedroom condos.
Studios are up a whopping 26 %. One bedroom condos are up 7% and
2 bedroom condos are up a healthy 4% year over year.

However, it looks like the larger units took a hit for some reason.
Condos with 3 or more bedrooms are down 16% year over year.
If you are thinking about buying a 3 or 4 bedroom condo in Hyde Park,
now might be a good time since the average selling prices have dipped.

Now let’s take a look at the Hyde Park rental market.
The Hyde Park rental market is in high demand.
The neighborhood has great amenities including restaurants, shopping,
and parks. When demand is high and supply is low, prices will increase.
As I just demonstrated, I have always been skilled at stating the obvious.
Studios rents are up 20%. Two bedroom units are up 6%.
4 bedroom units are up a whopping 30% year over year.
But, one bedroom and 3 bedroom rentals remained unchanged.

So what does this all mean? In a nutshell, Hyde Park condos are in demand.
But, some bedroom counts are doing better than others. After looking at this
data, one thing stood out to me: the relationship between studios and one bedrooms.
Studios are selling for 41% less than a one bedroom unit.
But the rental income for a studio is only 23% less than a one bedroom unit.
So your return on investment, or cap rate, is likely to be higher with a studio.
So instead of buying a one bedroom unit, you may want to consider purchasing
two studio units. Of course, your mileage may vary. Contact me for more information.

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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Hyde Park Real Estate – Average Selling Prices

In the chart shown above, we see that prices bottomed out around the beginning of 2013.
Prices have been slowly climbing since then. If the current trend continues, we will be back at 2010
prices pretty soon. If you are thinking about buying in Hyde Park, now might be a good time before
prices increase further.

Hyde Park Real Estate – Average Days on Market

Looking at the chart above, we see that market time was the lowest in 2013. This coincided with
the fact that selling prices were at their lowest too. As prices started increasing, so did the
market time. Currently, it is taking about 5 1/2 months to sell a 2bed/2bath condo in Hyde Park.
This is about the same amount of time it took to sell a condo in 2010.

Hyde Park Real Estate – Average Monthly Assessments on a 2bed/2bath condo

In the chart shown above, we see that the average monthly assessments are steadily climbing.
Monthly assessments generally cover things like heat, water, landscaping, snow removal, and
common insurance. The average assessments on a 2bed/2bath condo are currently about $730/month.
Well, I hope you found this information useful. If you have any questions about buying
or selling real estate in Chicago, please send me a note: mark@markkillion.com

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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Average Selling Price for a 2 bedroom condo in Hyde Park (by year)

2013 Hyde Park Real Estate Sales Analysis

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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This is what it looks like today:

The old Village Center in Hyde Park

( I think this picture is kinda cool, because I took it while they
were actually doing demolition work. )

And this is what it will look like at the end of 2014:

The “City Hyde Park” new development coming in 2014

Big difference huh?
This should have a positive impact on Hyde Park Real Estate values.
The only downside is that it will undoubtedly increase congestion and
traffic in this popular Chicago neighborhood.

Until the next time,

Mark Killion
RE/MAX Premier Properties
1205 N Dearborn
Chicago, IL 60610

Send me a note!

Visit me online: www.773property.com

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Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Hyde Park Mobil Gas Station being demolished

The Mobil gas station and car wash on 53rd Street is currently being demolished.
The gas station has been on 53rd street for many years. It is being demolished to
make way for a new 13 story residential and retail building! The new building will
be named Vue53. Construction is set to begin early 2014.

Hyde Park Village Foods Site of new Whole Foods

Rumor has it that a new Whole Foods grocery store is coming to Hyde Park.
It will be at the site of the old Village Foods grocery store on 51st and Lake Park.
There will also probably be a large apartment complex built near the same location.

The new Harper Square development was completed earlier this year.
53rd and Lake Park looks totally different than it did a couple of years ago.
53rd and Harper is looking good too. One of these days, I will have to catch
a movie at the new and improved Hyde Park Theater!

LA Fitness in Hyde Park Chicago at Harper Court

Theater in Hyde Park Chicago

Until the next time,

Mark Killion
Kale Realty
Chicago, IL

Send me a note!

Visit me online: www.773property.com

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A short-sale is a type of distressed property sale.
It is not a traditional re-sale of a property.
In a short-sale, a lender agrees to accept a payoff
that is less than what they are owed.
In this type of transaction, the lender comes up short
(hence the term short-sale).

Ironically, short-sales usually take a lot longer than
a traditional sale. Some real estate professionals
joke that they should have been named “long-sales”.
It is not unusual for a short-sale to take up to
3 months AFTER an offer has been accepted by the seller.

The reason that it takes so long is because the sale
requires 3rd party approval from the lender(s). If a
property only has one lien on it, it makes the short-sale
process much easier. This is because you only have to deal
with one lien holder.

Often times, there are multiple liens on the property.
So, you have to get written approval from each lien holder involved.
These types of short-sales are more difficult (but not impossible).
All short-sale properties have a 1st lien, which is usually the
primary mortgage. Some properties also have a 2nd lien that was
a home equity line of credit (HELOC). In these types of scenarios,
you have to negotiate with the 2nd lien holder as well.
On the bright side, many 2nd lien holders will settle for as
little as 6% of the debt.

If you are considering purchasing a short-sale property, I would
recommend researching how many liens are currently on the property.
Your real estate agent will be able to do this research for you.

If a property has multiple liens on it, the short-sale process will
probably take longer. So the name of the game is patience.
There are pros and cons with pursuing a short-sale property as a buyer.
The main downside is that the process takes a long time and it can be
frustrating. The main benefit to purchasing a short-sale is that your
patience will usually be rewarded with a great deal.
Short-sales typically sell for 10% to 20% below market value!

Benefits for a Seller:

A successful short-sale is really a win-win situation for all parties
involved. The seller gets to avoid having a foreclosure on their
credit report for the next 7 to 10 years. In many cases, the lender
may also forgive the deficiency debt. There was actually a law that
passed that made sure that the forgiven debt was not counted as
income for tax purposes. But this law is set to expire at the end of 2012.

FYI: The Mortgage Forgiveness Debt Relief Act Expires in 2012

If you are thinking about selling your primary residence,
and you are upside-down in your mortgage, do it in 2012
or forever hold your peace?after this act expires, the
forgiven debt will be viewed as taxable income (doh!)

Benefits for a Buyer:

If a buyer is patient, they can pick up a great home at a
nice discount. Generally speaking, short-sale homes are
in better condition than your average foreclosure.

Foreclosures have usually sat vacant for many months.
They may have been vandalized too. However, the short-sale
process can be frustrating. The bank can take a long time
to make a decision. And many times, the bank will ask for
more money from the buyer, seller, or both to make the deal
work. However, it will all be worth it in the end when
you get a home at 10% to 20% below market value.

Benefits for a Lender:

Although a lender would rather not accept less than what
they are owed, a short-sale beats a foreclosure any day.
Today’s unsold short-sales are tomorrow’s foreclosures.

The lender knows that if the property goes to foreclosure,
they will have to sell the property at a steeper discount
when they put it back on the market. Also, the time value
of money is important. Every month that a lender holds
a property in its portfolio, they are losing money.

2011 Sales Analysis for Short-sales in Bronzeville Chicago

We can gain a better understanding of short-sales by analyzing
transactions that successfully closed. I did a custom data analysis
of the Bronzeville neighborhood in Chicago, Illinois for 2011.

According to the MRED MLS system, there were 59 short-sale transactions
for the 12 month period ending 12/25/2011. That is an average of five
closed short-sale transactions per month! This number will probably increase in 2012.

Here are a few things that jump out at me:

* Most of the short-sales are happening with Bronzeville condos.
I expect this trend to continue.

* The biggest discounts are being realized with Single Family Homes.

* The amount of time it takes to get the short-sale approved is pretty
consistent across all property types. It takes about 3 months for
the bank to approve the average short sale. And this is AFTER a
written offer has been submitted by a qualified buyer.

If you would like a FREE evaluation of your specific situation,
please contact me. I have experience with short-sales,
and I have helped distressed homeowners avoid foreclosure.

———————————————————————–

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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Many times it is useful to review a chart of data to

identify trends. I decided to create a chart of selling

prices for condos in the Hyde Park Chicago neighborhood.

This set of data spans a 3 year period.

It runs from the 4th QTR 2008 through 4th QTR 2011.

It is based on the selling prices of 2 bed/2 bath condos.

I am frequently asked: “is it a good time to buy real

estate in xyz neighborhood?” So, I decided to

write a blog about it. I will cover several neighborhoods,

but for this blog post, I will examine Hyde Park.

I prefer to analyze and present the data,

and let the market tell us if it is a good time to buy.

The chart shown above is basically a 3 month moving average

of property selling prices in Hyde Park Chicago.

This chart is based on sales data from the MRED MLS System.

Findings:

A few things jump out at me when looking at this chart.

1) Prices hit a bottom in the 4th quarter of 2010.
Average prices in that quarter were about $80,000.
I would guess that most sales in that quarter were
bank-owned foreclosures.

2) Prices are trending upward in the 4th quarter of 2011.

3) During this rough three year period, prices have actually increased.
But there has been some volatility from quarter to quarter.

Based on this chart, it appears that prices are trending upward.
Since we don’t have a crystal ball, we can only hope that prices will
continue in that direction.

Here is a bit of information that this chart doesn’t show us:

Hyde Park will be getting a make over near 53rd and Harper.
Many new amenities are coming to the area (i.e. movie theatre,
Hyatt hotel, more restaurants, etc.)

So, in my opinion, it appears to be a good time to buy a condo
in Hyde Park. Prices have not only stabilized, but they are trending up.
Please let me know if you have any questions.

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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Former NBA star Magic Johnson is investing millions in
the Hyde Park Chicago neighborhood. There has been
renewed interest in the Hyde Park neighborhood by some
big time investors. I recently wrote about a huge commercial
transaction worth about $160 million. It appears that
investors with deep pockets view Hyde Park as a smart bet.

Magic Johnson leads an investment fund that is loaning up to
16 million dollars towards the redevelopment of 53rd and Harper.
This corner will be anchored by a new 130 room Hyatt Hotel.
It will offer about 150,000 square feet of office space.
It will also offer about 75,000 square feet of commercial retail space.

All of the office space has already been leased to the University of Chicago.
Half of the commercial retail space has been leased to L.A. Fitness.
They hope to fill the remaining space with restaurants and clothing stores.
There will also be a new movie theater across the street.

An artist rendition of “the new” 53rd and Harper.

The first phase should be completed in 2013.
The 2nd phase will include about 400 residential units.
I’m guessing the 2nd phase will be done by 2015.
The total project will cost about 150 million. (wow!)

This project will go a long way towards making Hyde park a
‘must visit’ Chicago neighborhood. This should also bode very well for
local real estate values.

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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Regents Park is a large and popular complex in the
Hyde Park neighborhood. It has about 1,000 units
and the rent prices are not cheap.
Rental demand is very high right now in the area.
So, that fact made this an attractive buy to the investors
from New Jersey.

They also are probably aware that a lot of new amenities
are coming to Hyde Park in the next few years.
(i.e. Hotel, movie theatre, grocery store, etc. )
So they are betting on the fact that the rents will keep rising
to the top!

This is the second biggest purchase this year in Chicago.
So this is really a big deal (pun intended)

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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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