Here's a round up of this week's real estate news
-Fund buys semi-failed Hotel 71 The condo-hotel idea never took off in Robert Falor's building, so it was sold for $37 million on the CMBS market. The WSJ reports that the 309 rooms in operation in the building, which served as Bruce Wayne's apartment in The Dark Knight, have been stalled.
-Construction may start again on the Spire: Tired of that big ol' hole in the ground near LSD? The AP reports that union pension funds may buy and restart the development on the project. Which makes sense because their laborers may benefit from it.
-Fewer sellers are cutting prices on their homes This Tribune article reports reductions are down 15 percent in Chicago to 27 percent of homes on the market that have had their prices reduced. Average price reduction is 10 percent for multifamily homes and 7 percent for condos. No word on if that just means that people are pricing their homes more realistically.
-Foreclosures up from a year ago, down from last month.One in every 243 homes in Chicago is in foreclosure, according to this Sun-Times article. But that's way better than Nevada's rate of one in every 119, and 18 percent better than it was last month.
-Recovery trends reversed-Blogging Stocks reports that while mid-level homes are usually the first back on the recovery, now high-level homes are going first becasue their owners don't usually need the level of credit that mid-level home buyers need.
1 Comment
Lucid Realty said:
If those pension funds proceed with investing in the Spire they are going to regret it. If it doesn't make sense for other investors it certainly won't make sense for the unions. It may create jobs but at what cost to the funds?
On a separate note, Trulia did the calculation of the price reductions and I wonder if they were looking at only the current listing or the original listing - because often realtors will lower the price under a new listing. Also, at this time of the year a lot of sellers take their homes off the market - especially homes that aren't selling. That would also reduce the percentage that have price reductions.
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