Thursday, February 14, 2013

Can you spare (more than) a million?

It is virtually impossible to buy a new construction home for $1 million or less in our target North Side Chicago neighborhoods of Lincoln Park, Lakeview, Uptown, North Center and Lincoln Square.  This has been true in Lincoln Park for many years, but now it's also the case in the further north and west neighborhoods (south of West Foster Avenue, east of North Western Avenue).  Gone, as well, are the developer new construction foreclosures and short-sales that may have slipped under $1 million after 2008 financial crash.

2109 W Belle Plaine in Coonley School district asking $1.279 million sold quickly (photo Eric Rojas)
North Center continues to be one of the hottest markets for new construction homes sales.  Just this week two new construction houses (our clients wanted to see) went under contract (both incomplete...2109 W Belle Plaine selling within two weeks priced at $1.279 million, 2115 W Warner priced at $1.28 million selling in a week).  Both builders I spoke with did not have any new projects started and were both looking for land in the area.

This has been an eye opener to our $1M plus buyers that are looking to take advantage of low interest rates and buy a new or newer construction four bedrooms or more house.  They have found that the market for new construction houses, "like new" re-sale homes (recent new construction) and gut renovation homes is very competitive and fast. They are also finding new construction and new gut renovations on desirable blocks and in well ranked school districts are now selling at over $1.2 million with few exceptions.
We recently noted the cleared out lot at 2108 W Leland in Lincoln Square... the 40 wide lot will afford a future market price of $1.6 million or more for a new house build.

When an existing property is torn down it is likely the new home built will retail for over $1.1 million just about anywhere in the neighborhoods of Lincoln Park, Lakeview, North Center, Uptown and Lincoln Square.  This is a phenomenon surprising and even shocking to many long time Chicagoans I speak with (regardless if they are in the market or not.)