Monday, February 09, 2009

DEVELOPER INCENTIVES LOOSEN CHICAGO’S NEW HOME AND CONDO LOGJAM

The barrage of lucrative incentives currently being offered by Chicago-area residential developers apparently is beginning to loosen the logjam in the new home and condominium market.

And the gradual sales of new-construction residential units in Chicago also is starting to have a positive impact of housing values, reports Midwest Real Estate Data (MRED), a Northern Illinois multiple-listing service. In 2008, the median sales price of Chicago condominiums rose 5 percent to $310,032 from $295,400 a year earlier, reports MRED.

David Hanna, president of the Chicago Association of Realtors (CAR), attributed the increase in median sales price to the hundreds of new-construction units that were closed in 2008.

“Contracts for many of these residences were actually signed in the three years before the market declined, and finally they were built and closed in 2008,” said condo market analyst Ric Cox. For more information visit www.ChicagoCondosOnline.com.

Even with mortgage rates near a 50-year low, rock-bottom financing rates and freebie loan deals appear to be the magnet pulling many buyers into today’s marketplace.

Developer Steve V. Frytz of Anchor General recently started offering free mortgage principal and interest payments for six months—a cash value of about $15,000—at the Park Homes of Cornelia Court, a new 10-unit townhome phase in the 63-unit development in West Roscoe Village.

“We sold three townhomes in December and another one in January, sales months that traditionally are extremely slow,” said Gale Goldstick, of Coldwell Banker Residential Brokerage. “Now we are 50-percent sold in Phase III and 95-percent sold in Phase II at Cornelia Court, and grand opening a new model is scheduled for February 21st.” Call 773-478-8414, or visit www.corneliacourt.com.

Qualified Chicago home buyers who are willing to close a deal quickly and move in now currently will find once-in-a-lifetime deals. However, you must have down payment cash, job security, a good credit score, and be able to qualify for a mortgage, consumer advocates say.

C.A. Development, builders of Edgebrook Glen in the Edgebrook/Forest Glen neighborhood and two other Northwest Side communities, is offering a new “Home Buyer Stimulus” program and giving buyers a choice of 4-percent financing, six months prepaid principal, interest and taxes, or a $15,000 closing credit.

Immediate-occupancy homes, previously priced as high as $1.15 million, are now offered at prices starting at $575,000, said developer Paul Bertsche of C.A. Development.

“As a result, we have sold eight immediate-occupancy homes in the last quarter of 2008 and have six more luxury homes available with price discounts up to $275,000. For more information please call 773-631-9225 or visit www.cadevelopment.com.

Developer Roby Frankel, partner in Bluestone Development, recently slashed townhome prices more than $100,000 at Fletcher Row, and is now offering seller financing with a down payment as little as 10 percent and interest rates as low as 4.99 percent on jumbo loans.

The 20-unit new-construction townhome community at 2424 West Fletcher St. in West Roscoe Village has 3-bedroom and 4-bedroom units with 3 or 3.5 baths and 2,179 to 3,044 square feet of living area. Base prices range from $499,900 to $749,900. Call 773-281-6600 or visit: www.fletcherrow.com.

At the 17-unit Residences of The Abbey, a landmark historic renovation at 4715-4721 S. Greenwood in the Kenwood neighborhood on the South Side, developer Bob Angevin of Starbuck Capital, LLC, is marketing 17 unique condominium-conversion units and offering an eight-year real estate tax freeze for landmark property.

“The incentive will save buyers at The Abbey thousands of real estate tax dollars over eight years, said Angevin. Five remaining 3-bedroom and 4-bedroom units range from $335,000 to $599,000 including parking. Call 312-480-0144 or visit www.theabbeyhydepark.com.