Monday, November 02, 2009

SOUTH LOOP DEVELOPERS DISH UP NEW CONDO BARGAINS FOR THANKSGIVING

First-time buyers who are shopping for a bargain-priced new condominium in downtown Chicago and are willing to close before November 30th and really could have something to be thankful for at Thanksgiving.

With 1,538 new condos delivered this year in the South Loop, there’s a glut of units on the market, reports Appraisal Research Counselors. That batch of condos is being added to the 1,312 new ones that hit the market last year, and many still haven’t been sold.

“Condo developers who are selling units this autumn are discounting prices,” said Gail Lissner, vice president of Appraisal Research. “And, some of the best deals are in the South Loop.”

If you are shopping for a classic timber-beam loft, take a tour of loft condos available for immediate occupancy at Prairie District Lofts, 1727 S. Indiana Ave. in the South Loop.

“Kargil Development has reduced prices on 20 select units by as much as 25 percent,” said Keith Giles, president of WEICHERT, REALTORS—Frankel & Giles, the exclusive marketing agent.

Here is a sampling of the available deals:

• A 1-bedroom, 1.5-bath loft with 1,073 square feet of space is bargain-priced at $227,800, down 22 percent from $289,800—a savings of $62,000.

• A 2-bedroom, 2-bath loft with 1,234 square feet of space is discount-priced at $282,800, down 25 percent from $374,800—a solid reduction of $92,000.

• A 4-bedroom, 2-bath loft with 1,915 square feet of space is bargain-priced at $379,800, down 24 percent from $499,800—a hefty savings of $120,000. “Prairie District Lofts is approved for Federal Housing Administration-insured financing, so qualified buyers can purchase with a down payment as low as 3.5 percent,” Giles said. For more information, call 312-360-9988 or visit www.pdlcondominiums.com. Half-off discounts are being touted at Michigan Avenue Tower II, a 257-unit condo tower at 1400 S. Michigan Ave. in the South Loop. Russland Capital Group, the developer, plans to auction 40 of the remaining 97 units on November 15th, with minimum bids starting at $99,000.

A 2-bedroom, 2-bath unit with 1,027 square feet of space could sell for a minimum bid price of $175,000. That’s a 56 percent discount from the last asking price of $395,900. Units can be previewed up to November 14th. Call 312-583-9520, or visit www.1400michigan.com. First-time buyers who close before November 30th will be eligible to receive the $8,000 federal tax credit through the federal government.

More than 51,000 Illinois families have received the tax credit and more than 1.4 million first-time home and condo buyers nationwide have taken advantage of the federal tax credit as of mid-September.

Meanwhile, the housing marketing continued to rebound in the Chicago area in September, according to the Illinois Association of Realtors (IAR) latest report.

Year-over-year home and condo sales were positive for the third consecutive month, up 5.9 percent to 6,862 units sold in September, compared with 6,477 units sold in September of 2008. However, resale prices still are soft. The median home sale price for the Chicago area was $199,000 in September 2009, down 10.8 percent from $223,000 in September 2008.

In Chicago, September total home and condo sales were up 5.8 percent to 1,918 sales compared to 1,813 homes sold in September 2008. The city of Chicago median price in September 2009 was $225,000 down 16.2 percent compared to $268,600 a year ago in September 2008.

“Buyers taking advantage of the first-time home buyer tax credit were clearly out in force in most regions statewide in September and thus building momentum for a recovery in the housing market,” said Mike Onorato, president of the IAR.