Sue Fox, @Properties. Direct 773.816.1788

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Archive for October, 2013

A market in recovery: Chicago-area foreclosures plummet as house flipping soars

filed under: Albany Park, Buyers, Chicago home sales, Foreclosures, Market conditions posted on October 22nd, 2013

FLIPPING OUT:

FLIPPING OUT: This 1911 3-bedroom stucco home in Albany Park, an estate sale described as a "diamond in the rough," sold in January for $149,200. Four months later, it was back on the market with a new kitchen, three additional bathrooms, fresh paint and refinished floors throughout, and a finished basement featuring a 4th bedroom. It sold within a few weeks for $380,000. As prices recover, house flipping is on the rise throughout Chicago, especially on the North side.

A pair of new statistics caught my eye this week, both suggesting that the era of rock-bottom real estate in Chicago is rapidly becoming a thing of the past.

First, the number of local homes (in the Chicago-Naperville-Joilet metro area) in foreclosure dropped 31.3% over the same time last year, according to the data firm CoreLogic. This stands to reason: With home prices climbing throughout the year, homeowners now stand a better chance of being able to sell or refinance their homes — instead of defaulting on their mortgages.

At the same time, thousands of cheap Chicago homes in need of repair — many of them foreclosures or short sales — are quickly being snapped up by investors, who usually pay cash. They are fixing them up (with new kitchens, baths, finished basements and sometimes new roofs and mechanical systems) and popping them back onto the market again just a few months later. And these renovated homes are selling quickly to buyers who don’t want to (or can’t afford to) do all that work¬†themselves.

There were 2,235 single-family houses that were sold and then sold again within six months in the Chicago area from January to September, according to a new Realty Trac report, more than double the 1,086 homes flipped in the same period in 2012.¬†This doesn’t even include the homes that took a bit longer than six months to renovate and sell.

Written by Sue Fox // Please leave a comment.