Edgebrook / Sauganash / Gladstone Park Market Conditions – Third Quarter 2010
Third quarter sales stats for 60646 this year are somewhat similar to 2009 Cook County second installment property tax bills: They are both delayed beyond belief, with very little time before the next edition is due. The difference being that I’m not deliberately tardy, and, I’m not running for any kind of political office. I assure you though that nothing earth-shattering happened in zip code 60646 during Q3 2010, as far as residential real estate sales are concerned.
Also on behalf of RE/MAX Cityview in Edgebrook, I wish you and your families a wonderful holiday season, and a happy, healthy, and prosperous 2011. Fourth quarter 2010 and year-end stats for zip code 60646 are coming up in a few short weeks.
Edgebrook Real Estate Market Conditions Q3 2010 ↓↑
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With a total of 11 closed homes in Q3 2010, Edgebrook saw a 38.9% decline of sold units vs. Q3 2009, and worse, a 66.7% decline vs. Q3 2008. There are no specific reasons for this drop-off, as far as I can see, other than the general culprits of bad economy / hideous job market / stingy mortgage lenders. Only one of the closed sales was a bank-owned / foreclosure / REO property which again proves that the Edgebrook and Wildwood markets are not pre-dominantly affected by foreclosures. On the plus side – and those figures are not included in this analysis – six condo units at Edgebrook Pointe (intersection of Touhy and Caldwell Ave.) were sold/closed in Q3 2010 at a median price of $227,000 (all 2 BR-2 BTH units). The previously unsold condos at this project had been purchased from Archer Bank by an investor who managed to sell all but one of the residential units in an average of 38 days, as a result of very aggressive pricing. Nicely done!  Edgebrook Q3 2007-2010 Units Sold Not only were sales soft, but home values seemed to take a nosedive in Edgebrook as well in Q3 2010. At $324,000, the median price for a single family home in Edgebrook fell by 22.8% in Q3 2010 vs. Q3 2009. This is a relatively steep drop, given that the decline in value from Q3 2008 to Q3 2009 was “a mere” 9.2%. Obviously, not every home in Edgebrook and Wildwood is a luxury home, hence, there is a suspicion that the 11 sales did not (or hardly) involve any luxury properties, which in turn could explain why the median value was “only” in the lower 320′s in Edgebrook in Q3 2010. I’ll expand on that farther down below. Average market time improved marginally from 154 days in Q3 2009 to 142 days in Q3 2010.  Edgebrook Q3 2007-2010 Sale Prices While the downward change in median home values in Edgebrook was nothing to write home about, a look at the sale-to-list-price ratio reveals that Q3 2010 home sellers in Edgebrook did not compromise their expectations by much, compared to last year’s sellers in Q3. In Q3 2010, sellers were not willing to part with their homes for more than an average of 7.5% below asking price, while in Q3 2009 that figure was 7.2%. More realistic pricing had certainly something to do with that.  Edgebrook Q3 2007-2010 Sale-List Prices And finally, a look at the breakdown of sales by residence size sort of confirms that Q3 2010 was not particularly geared towards luxury home sales in Edgebrook. The vast majority of transactions involved homes with 3 bedrooms or less, and sold below $375,000. Only two homes had four or more bedrooms, selling for $415,000 and $430,000 respectively.  Edgebrook Q3 2010 Stats by Home Size With 40 homes currently for sale in Edgebrook, the MSI-Index (Months Supply of Inventory) stands at 10.9 months which means that if no other homes came on the market for sale, it would take 10.9 months to sell off the existing inventory of homes in Edgebrook. |
Sauganash Real Estate Market Conditions Q3 2010 ↓↑
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16 homes sold in Sauganash in Q3 2010, and that includes one residence that is located in the Brynford Park area (bound by Victoria St., Tripp Ave., Bryn Mawr Ave., and Pulaski Ave.) We could debate whether that patch is still Sauganash or North Park, the fact though is that it’s zip code 60646, and it’s closer to Sauganash than it is to North Park. Besides, there is not that much real estate activity to report of from that area anyway. So, 16 sold homes means an 11.1% decline of unit sales vs. Q3 2009.  Sauganash Q3 2007-2010 Units Sold Now comes a pleasant surprise: Average and median home values in Sauganash rose in Q3 2010 vs. Q3 2009. Average by 35.4% and median by 41.2%. Granted, among the inventory of closed homes in Q3 2009 in Sauganash, we had four bank-owned / REO sales and one short sale, whereas in Q3 2010, we only saw one bank-owned / REO sale and two short sales among the 16 closed units. Nonetheless, a $116,000 median home value increase a year later is quite impressive. But, I think it’s still way too early to call this a market turnaround. Average market times rose to 227 days, which is a bit of a skewed figure, as that one residence in Brynford Park closed after a cumulative 814 days. Without that property, the average market time in Sauganash in Q3 2010 would have been 188 days.  Sauganash Q3 2007-2010 Sale Prices More good news: The sale-to-list-price ratio in Q3 2010 rose to 93.5% from 91.8% in Q3 2009. If we disregard the three distressed sales in Q3 2010, the ratio would be 92.9% which is still higher than Q3 2009′s ratio including 5 distressed sales. So, this might be an indication that the era of “fire sales” – if there ever were any in Sauganash – are coming to an end.  Sauganash Q3 2007-2010 Sale-List Prices With 37 homes currently for sale in Sauganash, the MSI-Index (Months Supply of Inventory) stands at 6.9 months. This is an absorption figure that is almost indicative of a balanced real estate market |
South Edgebrook/Gladstone Park Real Estate Market Conditions Q3 2010 ↓↑
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In Q3 2010, the residential real estate market in South Edgebrook / Gladstone Park did not disappoint: Two more homes were sold than in Q3 2009, for a total of 16 properties. That tied the Q3 2008 sales figure, but was short two homes vs. Q3 2007. On a graph, this looks like we’re coming out of a valley…  SEGP Q3 2007-2010 Units Sold While unit sales were satisfactory, median home values declined by 3.9% vs. Q3 2009. It’s not really a worrisome issue because we had one bank-owned / REO sale and three short sales in Q3 2010, and the quicker banks work their way out of the distressed property inventory, the faster home values will stabilize and rise again. Here’s a Q3 2010 “feel-good” story from the North Gladstone Park neighborhood: A bank-owned property at 5755 N Melvina Ave. was purchased on June 30, 2010 for $225,000. The property underwent some remodeling (not exactly sure what was rehabbed), was placed on the market for sale on July 31, 2010, and closed again on September 9, 2010 for $320,000. Obviously, the improvements made in July must have been worth $95,000 to the buyer and the appraiser, as this was a conventionally financed transaction. Can you say “Flip that house”?  SEGP Q3 2007-2010 Sale Prices And more good news for South Edgebrook / Gladstone Park, as the sale-to-list-price ratio further improved in Q3 2010 vs. Q3 2009 by 1.3%. It’s not a huge change, but you can see the trend on the chart: Home sellers are becoming less negotiable as a result of realistic pricing, as average list prices in Q3 2010 dropped by 4.6% vs. Q3 2009.  SEGP Q3 2007-2010 Sale-List Prices With 51 homes currently for sale in South Edgebrook / North Gladstone Park, the MSI-Index stands at 9.6 months. Another very reasonable absorption figure, pointing in the direction of a balanced real estate market. |
Possibly related posts:
- Edgebrook / Sauganash / Gladstone Park Market Conditions – Fourth Quarter 2010 And Year-End Stats
- Edgebrook / Sauganash / Gladstone Park Market Conditions – First Quarter 2010
- Edgebrook / Sauganash / Gladstone Park Market Conditions – First Quarter 2011
- Edgebrook / Sauganash / Gladstone Park Market Conditions – Second Quarter 2010
- Edgebrook / Sauganash / Gladstone Park Market Conditions – Fourth Quarter 2009 and Year-end Stats
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Tags: Absorption, Edgebrook Towers, Gladstone Park, Home, House, MLS, Old Edgebrook, REO, Sales, South Edgebrook, Wildwood
Ha! They'll fall in the winter and then rise again in the spring just as the sun rises in ...
... It's going to be a long cold winter. I'll be back in the spring.
That's what I'm reading too, ...
Why go into business if you can't sell?
In career choice there are all these older guys who confuse ...
Ill tell you what’s up. I want to move to Edgebrook or Wildwood. I like the homes, the woodsy feel of the neighborhood, the good cps schools, access to the highways, and reasonable commutting times to my and my wife’s jobs. We have a combined hh income of 140,000 per year, far higher than the Chicago median or average. Im looking for a modest house at 2.5 or 3.0 times my household income.
There are almost no homes that meet my criteria. Even the smallest and most outdated homes are nearly $400,000 and are almost $300 psf. For a small home with one shower, one car garage
and $7,000 a year taxes.
Apparently many others agree with my sentiment, which explains the66% drop off in sales volume from 2007. Ill revisit your neighborhood when the day comes that I can buy grandmas outdated 3 bedroom colonial in need of work for less than$ 3000000. Until then your sales volume will be almost nonexistent.
So, you’re looking to purchase a home in Edgebrook/Wildwood between $350,000 and $420,000 (2.5-3 times your combined hh income). A cursory glance at homes for sale in Edgebrook shows that there are about 15 or 16 for sale in that price range, at the moment. They may not all be a match for your search criteria. But then again, you have not told me what your search criteria are.
Take this one, for instance. A split-level, and certainly not a small house by any stretch of the imagination. There are others, of course. But the question that you ought to ask yourself is: In a neighborhood with fantastic schools, excellent access to highways and public transportation, which offers a suburban vibe (all the things that seem to be important to you), shouldn’t home prices in that neighborhood be somewhat higher than in a neighborhood that has no appeal whatsoever to you and your family?
When you can sincerely come to the conclusion that homes in Edgebrook/Wildwood should command some sort of a premium, simply by virtue of their outstanding location, I will happily go to work for you to find you and your family your dream home. And it doesn’t have to be grandma’s old colonial.
$300,000 not $3,000,000 sorry for the typo.
I looked at the 6727 Wildwood property. Granted, that property isn’t bad, but it’s a bit rich at $286 a square foot when the median selling price in the zip 60646 is roughly $225 psf. The kitchen is going on 11 or 12 years old, and being a split level in a neighborhood of Colonials, Georgians and Tudors, (and some sprawling 1960′s ranches) this property stands out but not in a way that makes buyers want to pay a premium over the other offerings in the neighborhood.
Here’s a better example of what I’m talking about:
6700 N. Keota. Listed less than a week ago. Quite literally Grandma’s house. Same owners for 40 years. A kitchen installed in an era when jimmy carter was president. Old worn linoleum in the kitchen and the master bedroom (the smallest of the three) on the main floor and no bathroom at all upstairs. The assessor lists the home at 1,548 feet which makes this home $257 psf which is better than the Wildwood st home above but the cost to tear out and redo the kitchen and bathrooms negates the savings per square foot.
6620 N Keota Ave, 7107 N MCALPIN Ave, 5912 W FITCH Ave, 7017 N MONON Ave same thing.
Ok then, what do I like that’s been sold? I like 6773 N Keota with 5 bedroom, plenty of updates and a wide lot for $440,000.
6830 N Algonquin Ave is slightly more at $462,000, 3/2 with a wide lot, updated and not totally apparent it’s a split level at $270 a sq ft.
The foreclosure on 6407 N LEROY Ave was a steal.
6230 N LE MAI Ave is also at the seemingly common $270 psf which everyone seems to price their home at in 60646. Gorgeous kitchen, two full luxurious bathrooms on a 60 foot lot for $270 psf. This is not grandma’s colonial.
What do I like for sale now?
Given the low inventory nearly everywhere, there’s not a lot that grabs my attention (and I’m not the only potential buyer that shares this sentiment).
6712 N KEOTA Ave is really nice but about $125,000 over priced, it should be in the $250′s psf. 6916 N TONTY Ave is nice but at over $300 psf that’s absurd which explains why it’s listed on and off for 2 years now.
Other than that, there’s not much else that really sticks out. Some properties are priced appropriately for today’s market but nothing that pops, and the few properties that are under contract have psf prices in teh $300′s like 6974 N DOWAGIAC Ave. I counted only 10 properties in wildwood, edgebrook and old edgebrook for sale and 4 of those were in the edgebrook towers neighborhood and one weird property in old edgebrook.
I’m not quite ready to buy, as you can see from my examples above, but maybe next year; but if I haven’t already purchased in some other comparable area, I’ll revisit the 60646 blog neighborhoods again; and I’ll call you to take up your offer to help me find a home in 60646. but again, not until next summer! ciao!
@ interested party:
A quick observation and a general comment upfront. I noticed that you compare property values by using square footage. This is not a problem when used as a (very) rough approximation. It does assume though that (a) square footage info is available for ALL properties, and (b) square footage measuring guidelines are applied consistently and accurately across ALL properties. On both counts, the news is not good when it comes to single family homes; neither in zip code 60646, nor anywhere else in Chicago. Why? Because our Multiple Listing Service (MRED LLC) does not force its members to record square footage (let alone accurately) for their listings. As a result, for single family homes, listing agents only occasionally input sqft. More often they don’t. And when they do, it’s not clear how exactly the measurement was ascertained. So, we have a classic apples-to-oranges scenario. The Cook County Assessor provides square footage info for properties on their website, but how they have arrived at them … your or my guess is as good as any.
Secondly, MRED LLC rules prohibit me from commenting on any properties/listings where respective sellers have specifically opted out of their properties being commented on publicly (such as on blogs, social media etc.) As a result, some of the addresses that you have mentioned above, I am not authorized to comment on, here or on any other blog. I appreciate your understanding.
Generally speaking, “interested party”, the vast majority of the housing stock in Edgebrook and Wildwood is from the mid 40′s to the mid 50′s. My guess is that there is still a long way to go before most of this inventory is updated/renovated. With the turnover of homes every 7 years on average, this process may accelerate in the future, but a few things won’t change (thank God): The superior location, the oversized lots, the suburban/woodsy feel of the neighborhood. My point is: Folks who move here are not deterred by the financial ramifications of having to update grandma’s old colonial, on top of the relatively steep acquisition costs. It’s a price they gladly pay to escape city congestion, to send their kids to award winning schools, and to live in the suburbs with a Chicago address.
I understand, im just giving my opinion why i want to live in 60646 but im just not ready to commit to a large mortgage 3x my inncome on a house with a kitchen from 1980. I know 60646 prices are hurting bad, the trib had a story recently, and volume is significantlly down. Things will pick up and new younger buyers with children will soon move in and life will go on. Just not for a while longer.