Chicago Real Estate Notes

Chicago Real Estate Market Summary – April 2012

John Irwin — Tue, 15 May 2012 20:42:37 +0000

April 2012 continued to show improvement in most categories when compared to 2011 for the combined areas of Lakeview, Lincoln Park, Near North and the Loop. While Unit Sales and Units Under Contract increased dramatically and Inventory levels decreased, Median Prices continued to drop.

Some interesting notes:

All three price points showed increases; however, the total Unit Sales increase was driven by homes priced under $500,000 which showed a 35.3% increase over April of last year.

Homes priced from $500,000 to $1,000,000 increased 14.5% and homes priced over $1,000,000 increased 17.6%.

While these are all positive numbers, the higher percentage of increases in lower priced homes may account for the fact that median prices continue to drop despite a 3.7 months of supply of inventory.

Units Under Contract showed a dramatic 68.3% increase over April of last year. Lincoln Park led the other areas with a 130% increase over the previous year.

After three consecutive months of increases, Lincoln Park median prices dropped 10.2% in April 2012 in comparison to last year.

The numbers below represent homes listed in the MLS of Northern Illinois. (MREDLLC)

Please click on the Market Statistics tab above for more detailed printable reports.


	Apr-12	Apr-11	% +/-

Unit Sales – Total	481	374	28.6
Lakeview	138	117	17.9
Lincoln Park	100	65	53.8
Near North	182	159	14.5
Loop	61	33	84.8

Unit Sales By Price Point
0 – $500,000	349	258	35.3
$500,000 – $ 1,000,000	95	83	14.5
$ 1,000,000 – Up	40	34	17.6

Units Under Contract – Total	774	460	68.3
Lakeview	220	148	48.6
Lincoln Park	184	80	130.0
Near North	275	179	53.6
Loop	95	53	79.2

Unit Inventory – Total	4,118	5,884	-30.0
Lakeview	1127	1638	-31.2
Lincoln Park	892	1108	-19.5
Near North	1618	2389	-32.3
Loop	481	749	-35.8

Inventory (Months Of Supply)	3.7	10.5	-64.7
Lakeview	3.5	8.7	-59.3
Lincoln Park	3.2	11.3	-71.8
Near North	4.2	11.1	-61.8
Loop	3.5	12.1	-70.9

Median Pricing – Total	345,000	367,750	-6.2
Lakeview	363,000	390,000	-6.9
Lincoln Park	417,000	465,000	-10.2
Near North	338,000	339,500	0.4
Loop	275,000	315,000	-12.7

Ventless Fireplaces – What Are They And How Do They Work?

John Irwin — Tue, 24 Apr 2012 15:35:19 +0000

Ventless Fireplaces have become very popular in Chicago condominiums and single family homes. They allow the addition of fireplaces to almost any room in the house without costly chimneys and venting.. The following excerpts are from an article by E How.com explaining what ventless fireplaces are and how they work.

What is a Ventless Fireplace?

A ventless fireplace, or a vent-free fireplace, does not require a chimney or vent. It is fueled by natural or propane gas or a gel fuel. The gas fireplaces are a great heat source for a single room and the gel fireplaces are used mainly for aesthetics. Ventless gas fireplaces require a gas line to be installed from a public gas source or a propane tank to the fireplace. There are many different types and sizes to fit the needs of any room. By not needing a chimney, they are very inexpensive to install. The heat the fireplace provides is measured in BTUs and will be posted on each one. This is an important number to know because it will be the determining factor of whether it is right for your particular room. Always check with your local building code office before having a gas fireplace installed, as they have been outlawed in some states. Because of certain health concerns, always have them installed by a professional. Installing it yourself without knowing the all of the particulars can lead to sickness and even death.

How Does a Gas Ventless Fireplace Work?

The first consideration in purchasing a gas ventless fireplace is its intended use. If it will be used it as a secondary source of heat for a chilly room, make sure it is sufficient, yet not too powerful for that room. The BTU measurement will describe the minimum square footage a room needs to be to use the fireplace. It is suggested they are not used for more than 4 hours a day. The reason so much attention is placed on the room size is because of the ventless feature. A gas line is installed to the fireplace in order for the gas to fuel the fire. The box in the fireplace is either made of a fireproof metal or ceramic and there are artificial logs sitting inside the box. Start the fire with a button on the fireplace or by remote control. The fire is ignited directly under the fake logs and you can see the flames around them. It almost looks like a real wood fire. You can control the amount of heat output by a dial on the fireplace or the remote control.

Unfortunately, all fires use oxygen and vent somewhere. A ventless fireplace will take the oxygen out of the air in the room and replace it with carbon monoxide and moisture. For this reason the units are equipped with oxygen and carbon monoxide detectors. If it senses too much carbon monoxide it will shut the unit off. The same is true when it senses the oxygen level is too low. Because the units put out quite a bit of moisture, a mold problem could develop. Having a dehumidifier in the room helps tremendously. When the fireplaces are installed by a professional and properly sized and adjusted, they are very safe and can help with those high winter heat bills.

The Gel Fireplace

Another form of the ventless fireplace uses cans of alcohol-based gel fuel. These fireplaces also have artificial logs and the entire unit can be put together with just a Phillips head screwdriver. They are completely portable and can be moved from room to room with ease. The cans of fuel are place behind the artificial logs and lit. They will last up to 3 hours and you can burn 1 to 3 cans at a time. They even make the crackling sound of a real fire. Even though these units are just for look and ambiance, they can produce up to 3,000 BTUs of heat. The gel has no odor and does not emit any toxic fumes or smoke. This type of ventless fireplace is great for the corner of a bedroom or living room when you just want the cozy feeling of a fire.

Chicago Real Estate Market Summary – March 2012

John Irwin — Mon, 09 Apr 2012 20:04:19 +0000

March 2012 showed improvement in most categories, when compared to 2011 for the combined areas of Lakeview, Lincoln Park, Near North and the Loop. While Unit Sales and Units Under Contract increased dramatically and Inventory levels decreased, Median Prices continued to drop.

Some interesting notes:

The Unit Sales increase was driven by homes priced under $500,000 which showed a 39% increase over March of last year. Homes priced from $500,000 to $1,000,000 decreased 11.7% and homes priced over $1,000,000 had a 2.6% increase over last year

While Lincoln Park showed the lowest percentage of increase in Unit Sales, it showed a 65.2% increase in Units Under Contract. It also posted an increase in Median Prices for the third consecutive month. All other areas had Median Price decreases when compared to March 2011 despite a cumulative 4.1 Months Of Supply.

The numbers below represent homes listed in the MLS of Northern Illinois. (MREDLLC)

Please click on the Market Statistics tab above for more detailed printable reports.

	Mar-12	Mar-11	% +/-

Unit Sales – Total	431	351	22.8
Lakeview	122	82	48.8
Lincoln Park	75	70	7.1
Near North	181	156	16.0
Loop	53	43	22.3

Unit Sales By Price Point
0 – $500,000	328	236	39.0
$500,000 – $ 1,000,000	68	77	-11.7
$ 1,000,000 – Up	39	38	2.6

Units Under Contract – Total	728	460	58.3
Lakeview	228	138	65.2
Lincoln Park	140	91	53.8
Near North	275	183	40.4
Loop	103	48	114.6

Unit Inventory – Total	4,230	5,970	-29.1
Lakeview	1162	1620	-28.3
Lincoln Park	852	1086	-21.5
Near North	1681	2527	-33.5
Loop	535	737	-27.4

Inventory (Months Of Supply)	4.1	10.3	-60.2
Lakeview	3.5	9.2	-62.4
Lincoln Park	4.4	9.5	-53.8
Near North	4.8	10.9	-55.7
Loop	3.4	13.1	-73.8

Median Pricing – Total	333,000	379,000	-12.1
Lakeview	313,750	353,000	-11.1
Lincoln Park	425,000	418,000	0.7
Near North	318,000	390,000	-18.5
Loop	289,000	215,000	34.4

Chicago Real Estate Market Summary – February 2012

John Irwin — Tue, 06 Mar 2012 23:07:04 +0000

February 2012 showed improvement in most categories when compared to 2011 for the combined areas of Lakeview, Lincoln Park, Near North and the Loop.

While Unit Sales were flat, Units Under Contract rose 47.3% and Inventories continued to drop significantly. Unfortunately, inventory levels continue to be high enough to have an adverse affect on median pricing.

Lincoln Park was the exception showing the only increase in Unit Sales and an increase in Median Pricing for the second consecutive month

Sales for homes priced under $500,000 and those priced over $1,000,000 showed increases over last year, while homes priced from $500,000 to $1,000,000 decreased.

The numbers below represent homes listed in the MLS of Northern Illinois. (MREDLLC)

Additional reports are available by clicking the Market Statistics tab above.

	Feb-12	Feb-11	% +/-

Unit Sales – Total	261	216	0.0
Lakeview	71	75	-5.3
Lincoln Park	42	35	20.0
Near North	105	108	-2.8
Loop	43	43	0.0

Unit Sales By Price Point
0 – $500,000	190	186	2.2
$500,000 – $ 1,000,000	47	55	-14.5
$ 1,000,000 – Up	25	20	25.0

Units Under Contract – Total	554	376	47.3
Lakeview	165	108	52.8
Lincoln Park	123	65	89.2
Near North	212	161	31.7
Loop	54	42	28.6

Unit Inventory – Total	4,042	5,456	-25.9
Lakeview	1083	1436	-24.6
Lincoln Park	809	958	-15.6
Near North	1623	2380	-31.8
Loop	527	682	-22.7

Inventory (Months Of Supply)	6.6	12.1	-55.0
Lakeview	4.8	11.0	-56.9
Lincoln Park	4.8	12.1	-60.5
Near North	5.9	12.4	-52.1
Loop	7.3	13.9	-47.7

Median Pricing – Total	325,000	343,000	-5.2
Lakeview	342,500	369,000	-7.2
Lincoln Park	538,358	440,000	22.4
Near North	275,000	334,000	-17.7
Loop	325,000	317,900	-2.2

Clay Bricks vs Concrete Bricks – What is the Difference?

John Irwin — Tue, 21 Feb 2012 15:53:21 +0000

All bricks are not created equal and if you are considering buying a home or own a home you may be interested in some of the differences between clay brick and concrete brick, both of which are used extensively in Chicago.

The following excerpts from an article from Bricks inc. explain the differences between these two materials.

Throughout the course of history, brick has been one of the most versatile and widely used materials for construction. Brick is made by mining clay, a natural material, and creating slurry, which is extruded through a machine. The end or cap where the brick comes out is referred to as a “pug”. The pug determines the size and sometimes the texture of the brick. Once the brick is cut and dried, it is fired in kilns at up to 2,000 degrees.

Brick walls often served as the structure, weather barrier, vapor retarder, insulator, and sometimes the interior finish of a structure. Brick buildings, up until the introduction of concrete masonry units (CMU), were built by stacking multiple wythes of brick and tying them together. The wythes of brick supported the load of the structure. Flemish bond was a common way of tying multiple wythes of brick together.

The advent of Cinder Block in 1917 changed this method of construction. Now CMU supports the weight of the structure and the brick acts as a veneer to conceal the CMU.

Other advances that helped make clay masonry what it is today was the creation of portland cement. Portland cement gave mortar much higher compressive strengths, giving a brick wall even more overall strength.

The most significant difference between CMU and brick is how the materials are manufactured. CMU is made of portland cement and aggregates, usually sand and gravel. CMU is cured at high humidity and temperatures to create a bond between the cement and aggregates.

The differences in manufacturing and material content give CMU and brick very different physical properties, affecting the units long after they are installed. CMU will shrink while brick expands. Therefore, CMU requires control joints while brick requires expansion joints. Control joints are meant to control the cracking that occurs due to the units shrinking. Over time the sealant used in control joints must be replaced. The units must be sealed and the mortar must also contain a sealant; all of which add to its installed cost. Brick buildings will continue to expand for the first couple of years, ultimately giving them a tighter seal.

The color of brick is dictated by the color and type of clay that is mined. CMU’s color is based on pigments that are used to paint the units. Overtime, the weathering these units must incur can fade the pigments. Clay tends to retain color and structural appeal much longer than cement.

CMU’s physical properties also explain why its absorption rate is different from brick. CMU is a very porous material and will absorb water at much higher rates than brick.

If you are using brick for decorative purposes, then concrete may be your better option. When it comes to brick shape, concrete is a much more versatile product. Concrete brick comes in a myriad of shapes – from squares and triangles to octagons and trapezoids. Clay, on the other hand, is typically limited to more traditional shapes such as rectangles. Concrete can also be stamped or textured to provide unique visual appeal.

Please consult a qualified Home Inspector for answers to more detailed questions about these materials and how they may relate to a specific property.

Source – Bricks Inc

Chicago Real Estate Market Summary – January 2012

John Irwin — Wed, 08 Feb 2012 21:12:28 +0000

January started the new year with mostly positive results. Unit Sales and Units Under Contract increased when compared with January 2011. This seems to have been driven by sales of homes priced under $500,000, as homes priced over $500,000 declined against 2011.

Inventory Units and Months Of Supply decreased considerably against last year; however, inventories remain high enough to continue to drive median prices down. Two interesting exceptions were Lincoln Park where January 2012 median prices showed an increase against 2011 and Lakeview which was even in comparison to last year.

While we seem to be making progress in sales and inventory, pricing will probably be the biggest challenge of 2012

	Jan-12	Jan-11	% +/-

Unit Sales – Total	267	233	14.6
Lakeview	69	53	30.2
Lincoln Park	53	46	15.2
Near North	111	109	36.0
Loop	34	25	36.0

Unit Sales By Price Point
0 – $500,000	199	160	24.4
$500,000 – $ 1,000,000	48	50	-4.0
$ 1,000,000 – Up	23	25	-8.0

Units Under Contract – Total	416	312	33.3
Lakeview	109	77	41.6
Lincoln Park	80	53	50.9
Near North	174	137	27.0
Loop	53	45	17.8

Unit Inventory – Total	3,843	5,451	-29.5
Lakeview	1021	1401	-27.1
Lincoln Park	749	891	-15.9
Near North	1605	2442	-34.3
Loop	468	717	-34.7

Inventory (Months Of Supply)	7.0	14.1	-50.4
Lakeview	7.0	14.8	-52.5
Lincoln Park	6.9	13.8	-50.1
Near North	7.2	14.4	-50.4
Loop	6.7	12.6	-46.7

Median Pricing – Total	325,000	380,000	-14.5
Lakeview	355,000	355,000	0.0
Lincoln Park	450,000	388,382	15.9
Near North	309,500	385,000	-19.6
Loop	247,850	335,000	-26.2

Source – MREDLLC (Numbers reflect only properties listed in MLS of Northern Illinois)

A Comparison Of Bank Owned Properties To Non Bank Owned Properties – Lakeview, Lincoln Park And Near North – January 2012

John Irwin — Tue, 24 Jan 2012 16:28:05 +0000

Bank owned properties continue to be a hot topic in the real estate industry and it is sometimes difficult to tell fact from fiction. Some areas of the country have been devastated by foreclosures and other areas have not been as adversely impacted. The rumors of banks flooding the market with a tsunami of new foreclosures, has not materialized; however, the rumors continue.

I have attached 3 reports below that show comparisons of Bank Owned Properties to Non Bank Owned Properties by month for the past 2 years, for Near North, Lincoln Park and Lakeview. ( The numbers are pulled directly from the MLS and involve no additional calculations or formulas.)

In December 2011 Bank Owned Properties accounted for 9.2% of the total homes for sale and unit inventory owned by the banks was 44.2% lower than in December of 2010. Non Bank Owned Properties accounted for 90.8 % of the total inventory in December 2011, which was 27.2% lower than last year.

Unit sales of Bank Owned Properties were 22.5% of the total sales in December 2011 and represented a 35.8% increase over December of 2010. Non Bank Owned Properties represented 77.5% of December 2011 sales and declined 3.1% from December of 2010.

Median prices of Bank Owned Properties dropped 3.2% in December of 2011 in comparison to December 2010. Non Bank Owned median prices dropped 10.0% during the same time period. Bank Owned Property median prices average 52% lower than Non Bank Owned prices.

Please click on the 3 reports below (enlarge to 100%) for more detailed, printable information. Each report is 2 pages with both graphs and spread sheets.

Unit Sales (Bank, Non Bank)

Unit Inventory (Bank, Non Bank)

Median Pricing (Bank, Non Bank)

Numbers represent properties listed in the Northern Illinois MLS

Source – MREDLLC

Chicago Real Estate Market Summary – December 2011

John Irwin — Mon, 09 Jan 2012 22:54:00 +0000

After four months of consistent results, Lakeview, Lincoln Park, Near North and the Loop posted very mixed numbers when comparing December 2011 to 2010.

Unit Sales dropped for the first time since July of 2011, for the combined areas against the same time period last year; however, Lakeview and properties priced $500,000 and under showed increases. Properties priced over $1,000,000 dropped 49.1%.

Units Under Contract increased for all areas, while Inventory Units and Months of Supply continued dramatic decreases over the same period last year. Inventory levels remain high enough to continue to drive prices down. Median prices in December dropped 18.8% when compared to 2010.


	Dec-11	Dec-10	% +/-

Unit Sales – Total	352	373	-5.6
Lakeview	76	54	40.7
Lincoln Park	29	40	-27.5
Near North	109	107	1.9
Loop	40	42	-4.8

Unit Sales By Price Point
0 – $500,000	254	243	4.5
$500,000 – $ 1,000,000	73	78	-6.4
$ 1,000,000 – Up	28	55	-49.1

Units Under Contract – Total	326	302	7.9
Lakeview	62	45	37.8
Lincoln Park	27	21	28.6
Near North	99	91	8.8
Loop	40	38	5.3

Unit Inventory – Total	3,776	5,519	-31.6
Lakeview	744	1017	-26.8
Lincoln Park	363	478	-24.1
Near North	881	1469	-40.0
Loop	330	568	-41.9

Inventory (Months Of Supply)	8.8	14.4	-38.8
Lakeview	8.8	18.4	-52.0
Lincoln Park	10.0	17.9	-44.1
Near North	6.7	13.0	-48.6
Loop	5.9	10.6	-43.9

Median Pricing – Total	315,000	388,000	-18.8
Lakeview	253,500	322,500	-21.4
Lincoln Park	288,000	351,500	-18.1
Near North	247,000	270,000	-8.5
Loop	211,500	261,250	-19.0

Numbers represent only properties listed in the MLS of Northern Illinois.

SOURCE – MRED LLC

Thank You and Happy Holidays

John Irwin — Tue, 20 Dec 2011 17:16:26 +0000

We would like to thank everyone who visited Chicago Real Estate Notes this year.

Whichever holiday you celebrate, take the time to enjoy and have a happy and healthy New Year.

We hope you will visit us on a regular basis in 2012

Chicago Real Estate Market Summary – November 2011

John Irwin — Thu, 08 Dec 2011 16:03:19 +0000

November 2011 showed continued increases in Unit Sales and Units Under Contract and decreases in Inventory and Months Of Supply for the fourth consecutive month in Lakeview, Lincoln Park, Near North and the Loop when compared to November 2010.

Inventory levels continue to decline in comparison to a year ago and averaged 8.7 months of supply this year for the combined areas, compared to 18.1 months of supply in November 2010. These levels are still high enough to have a negative effect on median pricing which dropped 10.1%

When looking at the combined areas by price point, homes priced under $500,000 and those priced over $1,000,000 showed unit sales increases, while homes priced between $500,000 and $1,000,000 showed a 17.1 % decrease in comparison to November 2010.


	Nov-11	Nov-10	% +/-

Unit Sales – Total	311	287	8.4
Lakeview	81	73	11.0
Lincoln Park	57	55	3.6
Near North	125	119	5.0
Loop	48	40	20.0

Unit Sales By Price Point
0 – $500,000	216	194	11.3
$500,000 – $ 1,000,000	58	70	-17.1
$ 1,000,000 – Up	41	31	32.2

Units Under Contract – Total	377	278	35.6
Lakeview	100	73	37.0
Lincoln Park	72	61	18.0
Near North	156	113	38.1
Loop	49	31	58.1

Unit Inventory – Total	4,269	6,103	-30.1
Lakeview	1146	1525	-24.9
Lincoln Park	848	1045	-18.9
Near North	1763	2654	-33.6
Loop	512	879	-41.8

Inventory (Months Of Supply)	8.7	18.1	-51.8
Lakeview	8.5	16.8	-49.4
Lincoln Park	8.7	13.3	-35.2
Near North	9.0	19.7	-54.5
Loop	8.4	24.5	-65.8

Median Pricing – Total	335,000	372,000	-10.1
Lakeview	385,000	415,000	-7.1
Lincoln Park	395,000	457,000	-13.7
Near North	305,000	330,000	-7.6
Loop	238,500	324,500	-26.5

Source - MREDLLC