Thursday, December 15, 2011

Lake View two-flat sales in 2011 up 46%: 21% are distressed sales

Two-flat in Southport Corridor: Photo, Eric Rojas Realtor / Broker

Lake View Community Area Two-flat Sales
38 two-flat buildings closed so far in 2011 with a median price of about $490,000. Unit sales are up 46% from the same period of 2010.  The 2011 median price was lower by $75,000 than the $565,000 in 2010.
The highs: By far the highest closing was $1,325,000 at 1445 W Addison 60613. This was a grey stone on a 62 feet wide, 134 feet deep lot in Southport Corridor. The second highest was $800,000 for a frame rehab on a standard lot (25' x 125')
The lows: $225,000, a foreclosure at 3942 N Hermitage Ave 60613 on a small 25' x 90' lot.
Distressed: 8 of the 38 two-flats sold by December 15th, 2011 were either short sales or foreclosures (21% of sales). 

Over-all, the Lake View Community Area has seen 76 multi-unit buildings (2-4 total units) close from January 1st to December 15th.  This is also up 46% over last year. Currently, there are 14 more multi-unit buildings under contract.


Anonymous said...

I would be interested in knowing how many of these two flats were purchased by developers for new construction development and how many will be maintained as two flats.

Eric Rojas said...

Great question.

We've been writing here about many gut rehabs and new construction for retail sale. This type of speculation is making money again due to lower purchase prices by professional developers.

Some are pretty obvious when we know the developer who is the purchaser for cash etc.. (we know some of these for sure).

Others are more speculative and they could be purchased to tear down or convert to single family homes if the market conditions are good. Some purchase with the intent to convert to single family homes, but hold as two flat rentals.

We'll never know for sure on the exact numbers, but we do watch these things in our target neighborhoods. I watch it close for my buyers clients because some of these homes don't make it to the MLS before they are sold.

There is a trend of people buying and keeping properties as two flats because the numbers make good sense for smart property buyers. The live-in owner/ operator is becoming more common again due to affordability.