Chicago Residential Real Estate Market

CHICAGO RESIDENTIAL MARKET
MARKET

Have you ever considered investing in the Chicago
Residential Real Estate Market?

Do you know why Chicago is such a great place to invest
in?

This presentation will provide you, the investor
with information about Chicago and its
neighborhoods using market data and
statistics from the National Association of Realtors,
Midwest Real Estate Data, LLC and etc.

Chicago is the 3rd largest city in the United States.

According to the 2000 census Chicago has a population of
2,896,016 people.

In 2006, there were 2,833,321 people in living in
Chicago.

There was a -2.2% decrease in the population from
2000 to 2006.

Chicago is the largest city in Illinois.

Chicago is the seat of Cook County.

Cook County is the second largest county in the United
States after Los Angeles County.

Chicago makes up approximately 54% of Cook
County‟s population.

Chicago extends :

more than 20 miles along the Lakefront

stretches North to the Wisconsin border

stretches South to the industrial suburbs and to
the Indiana border

Chicago is partitioned into 4 main sections:

-Downtown
-Loop
-Central Business District
-North Side
-South Side
-West Side

Downtown

covers 33 square miles

is known as “The Loop.” The nickname refers to the
area encircled by the elevated („L‟) train tracks.

Downtown looks great from every angle whether
you are shopping, sightseeing or doing business.

Downtown has some of the largest attractions in the US
and the World.

The Art Institute of Chicago has one of the largest and
most extensive collections of Impressionist and Post-
Impressionist paintings in world.

The Chicago Cultural Center is the first free municipal
cultural center in the U.S.

Harold Washington Library Center is the world‟s largest
municipal library.

The Willis Tower (formerly Sears Towers)
is the tallest building in the Western Hemisphere at
110 stories high.

McCormick Place is largest convention center in North
America

Some of the largest employers have headquarters in
Chicago such as :
Boeing
Sara Lee
CNA Financial Corp.
Aon Corp.
Kraft Foods Inc.

Chicago hosts several major financial and futures
exchanges :

The Chicago Stock Exchange
The Chicago Board of Trade
The Chicago Mercantile Exchange

South Side

Extends south of Downtown along Lake Michigan

Largest section of the encompasses 60% of the
city

Most of industrial businesses are located on the
South side

West Side

Extends west of Downtown

There are many parks on the West Side
including Douglas Park, Garfield Park, and
Humboldt Park.

Garfield Park Conservatory has one of the largest
collections of tropical plants in the U.S.

North Side

Extends north of downtown along the Lakefront

Most populated residential section of the City

Public parkland and beaches stretching for miles
along Lake Michigan to the city's northern border

There are 77 distinct communities in Chicago.

There are 228 named neighborhoods
within these communities.

Chicago has some of the most diverse communities in
the United States.

Every neighborhood has its own characteristics and
uniqueness.

A South side neighborhood with plenty of cultural
history .

Many of the buildings date back to the 1920s and
are currently being restored

There are plenty of beautiful old greystones with a
mixture of new construction condos, townhouses and
single family homes.

250
212
200
150
Active
100
51 Sold
50 38 35 26 Under Contract
10 10 4 9
0
Single Family Condos Multi-Unit
Bldg.

Information obtained from Midwest Real Estate Data, LLC
(MRED) as of May 3, 2009

$350,000
$300,000
$250,000
$200,000
Active
$150,000
Sold
$100,000
Under Contract
$50,000
$0
Bldg.


Albany Park is a neighborhood located on the
Northwest side of Chicago.

It is both a residential and commercial neighborhood
and one of the most ethnically diverse in the United
States.

200
164
150
94 Active
100 76
Sold
50 27 25 Under Contract
16 14 6 11
0
Single Family Condos Multi-Unit Bldg.

Information obtained from Midwest Real Estate Data, LLC (MRED) as
of May 3, 2009

$400,000
$350,000
$300,000
$250,000
$200,000 Active
$150,000 Sold
$100,000
Under Contract
$50,000
$0
Bldg.

Information obtained from Midwest Real Estate Data, LLC (MRED)
as of May 3, 2009

East Garfield Park is known for the Garfield Park
Conservatory which is one of the largest and most
notable conservatories in the U.S.

East Garfield Park has a mixture of single-family
homes and a considerable amount of multi-unit
residences and condos.

120
101
100 87
80
Active
60
Sold
40 31
23 22 Under Contract
20 5 8 10
3
0

Information obtained from Midwest Real Estate Data, LLC (MRED) as
of May 3, 2009

$250,000
$200,000
$150,000
Active
$100,000
Sold
$50,000
Under Contract
$0
Bldg.


Originally planned as a Chicago suburb

Irving Park is commercial district that provides a good
selection of specialty shops and independent
businesses.

A northwest side community which consist mostly of
two- and three-flat condo buildings, single-family
houses and many bungalows.

250 233
200
159
150 123
Active
100
Sold
50 28 21 32 37 Under Contract
17 19
0
Single Homes Condos Multiple Unit
Bldgs.


$450,000
$400,000
$350,000
$300,000
$250,000
Active
$200,000
$150,000 Sold
$100,000 Under Contract
$50,000
$0
Condo Single Family Multi-Unit
Bldg.


Jefferson Park is a neighborhood where homebuyers
will find an assortment of real estate from modern
condominiums to Victorian houses.

Jefferson Park is a northwest neighborhood in
Chicago with easy access to the Kennedy and
the Edens Expressway.

120 107
100
80
60 Active
60 50
Sold
40 23 28
5 6 6
0


$450,000
$400,000
$350,000
$300,000
$250,000
Active
$200,000
$150,000 Sold
$50,000
$0
Bldg.


Logan Square is a mixture of old mansions along
Logan and Kedzie boulevards.

Logan Square located on the Northwest Side of
Chicago has one of the most diverse mixture of
homeowners, shops, restaurants and real estate.

Logan Boulevard, Kedzie Boulevard and Humboldt
Boulevard are lined with large brick and stone
houses, old mansions and modern condominiums.

400 371
350
300
250
187 Active
200 174
Sold
150
90 Under Contract
100
52
50 26 25 25 34
0

Information obtained from Midwest Real Estate Data ,LLC

$800,000
$700,000
$600,000
$500,000
$400,000 Active
$300,000 Sold
$100,000
$0
Bldg.

(MRED) as of May 3,2009

Lincoln Square is located within the Ravenswood area

Lincoln Square circles the Lawrence/Lincoln/Western
commercial district.

There are more brick and stone, two- and three-flat
buildings than single family homes in Lincoln
Square.

300 269
250
200
Active
150
Sold
100 77 64
50 14 12 10 4
0


$800,000
$700,000
$600,000
$500,000
$400,000 Active
$300,000 Sold
$200,000
Under Contract
$100,000
$0
Bldg.


Washington Park is a South Side neighborhood in
Chicago. It includes 372 acre of park named
“Washington Park”.

The park is the proposed site of the Olympic Stadium
and the Olympic Aquatics Center in Chicago bid to host
the 2016 Summer Olympics.

Washington Park links Jackson Park by the Midway
Plaisance which stretches along the lakefront to Hyde
Park and South Shore neighborhoods.

100
87
80

60 Active
40 Sold
25
Under Contract
20 12 8
5 7 7
2 1
0

as of May 3,2009

Woodlawn is a South Side community conveniently
located near scenic parks, the lakefront and the
University of Chicago campus.

Affordable single-family homes and condominiums are
in abundance for many University of Chicago
students, couples and young families.

200
145
150

89 Active
100
Sold
50 27 23 33 25 32 Under Contract
7 3
0

as of May 3, 2009

$250,000

$200,000

$150,000
Active
$100,000 Sold

$0
Bldg.

Information obtained from Midwest Real Estate Data,LLC

Bucktown is a Northwest Side neighborhood which
consist of old architectural buildings
with a mix of modern housing.

Bucktown has newly constructed single-family
homes, condo buildings and converted lofts found in
many old factory buildings.

Bucktown has plenty of entertainment, restaurants and
shopping .

1000
837
800

600 Active
400 Sold
200
17 21 19 3
0

as of May 3,2009

$1,000,000
$800,000
$600,000
Active
$400,000
Sold
$0
Bldg.


Wicker Park is a Northwest neighborhood in
Chicago and located south of Bucktown.

Wicker Park consist of newly constructed
homes and condos as well as many
renovated older homes.

This rehabilitation has led to an increase in business
activity-many new bars, stores and restaurants serving
the growing number of shoppers, residents and visitors

1000
837
800

600 Active
400 Sold
200
17 21 19 3
0


$1,000,000
$800,000
$600,000
Active
$400,000
Sold
$0
Bldg.


The Near West Side is located west of the Chicago
Loop

The Near West Side is a thriving neighborhood of
young working adults and first-time homeowners.

New construction is taking place throughout the
neighborhood due to its proximity to Downtown and the
United Center

New construction is causing rapid economic
expansion in the area.

1000
864
800

600
Active
400 Sold
Under Contract
200 158 140
33 7 8 36 7 7
0


$700,000
$600,000
$500,000
$400,000
Active
$300,000
Sold
$200,000
Under Contract
$100,000
$0
Bldg.


Is 10 miles from the Loop on the city's north side
and located west of Rogers Park.

West Ridge consist mainly of single-family homes
and many smaller two- and three-flat buildings.

There has been a recent surge of homeowners
renovating bungalows and other types of single
family homes in this area.

140
117 117
120
100
80
80 72
61 Active
60
Sold
40 Under Contract
22 24
20 14
3
0


$500,000

$400,000

$300,000
Active
$200,000 Sold

$0
Bldg.


Chatham is a South side neighborhood that is easily
accessible from the Dan Ryan Expressway.

Chatham has a large number of long-time residents
and seniors who enjoy the many types of single-
family homes, business and parks.

Chatham has a mixture of Victorians, Georgians,
Tudors, older bungalows and custom-built
townhomes and single-family homes. There are a
few apartment buildings and condo conversions.

100 93

80
63
60
Active
40 28 30 32
Sold
7
2
0
SingleFamily Condo Multi-Unit
Bldg.

as of May 3,2009

200,000

150,000

Active
100,000
Sold
50,000 Under Contract

0
Single Family Condo Multi-Unit Bldg.

as of May 3, 2009

Chicago Lawn is a Southwest side neighborhood with a
small residential area surrounded by busy commercial
streets.

The neighborhood consist mostly of single –family
homes with a few low-rise apartment buildings.

Chicago Lawn is known for its affordable housing

Chicago Lawn is close to Midway Airport and is 20
minutes away from Downtown Chicago by public
transportation, the Orange Line.

250 225
200

150 Active
111
100 Sold
65 69
50
14 2
0
0


250,000
200,000
150,000
Active
100,000
Sold
0
Single Family Condo Multi-Unit
Bldg.


North Park is located on the North side of
Chicago.

It is home to Northeastern Illinois University.

Most of the homes in the area are either historic
homes or bungalows. A few condos and
townhomes attract local college students and
young working professionals.

80 72
70
60
50 45
Active
40
Sold
30
13 10
8 6 9 8
10
0


450,000
400,000
350,000
300,000
250,000
Active
200,000
150,000 Sold
50,000
0
Bldg.


North Center has become increasing popular due to a
mixture of dining, shopping and live
entertainment in the area.

North Center is a North side neighborhood in
Chicago.

North Center neighborhood has many historic
homes and newly constructed houses along
the Chicago river.

250 233

200
150 132 Active
100 77 Sold
57 58
11 5
0


1,200,000
1,000,000
800,000
600,000 Active
400,000 Sold
0
Single Family Condo Multi-Family
Bldg.


Avondale is located on the Northwest side of
Chicago and the home of DeVry Institute

Avondale is easily accessible by the Kennedy
Expressway and it located directly north of
Logan Square .

Avondale consist of mostly framed single family
homes with some 2 flat apartment buildings and
condos that are located near a variety of businesses.

160
139 134
140
120
100
Active
80
57 Sold
60
20 15
20 8
0


350,000
300,000
250,000
200,000
Active
150,000
Sold
100,000
Under Contract
50,000
0
Bldg.


West Ridge Year-to Year Average Sale Price
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 322,250 224,092 391,750
2009 235,949 108,135 310,460

Information obtained from the National Association of Realtors (NAR)

Lincoln Square Year-to Year Average Sale Price
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 709,807 292,437 558,667
2009 554,257 240,307 339,667


North Center Year-to Year Average Sale Price
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 803,983 359,967 474,167
2009 707,036 361,191 497,230


Jefferson Park Year-to Year Average Sale Price
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 317,500 324,000 476,000
2009 245,000 172,500 200,000


North Park Year-to Year Average Sale Price
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 230,000 160,000 0
2009 281,167 255,000 269,750


Albany Park Year-to Year Average Sale Price
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 405,500 220,947 434,000
2009 240,933 72,000 230,600


Irving Park Year-to Year Average Sale Price
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 384,333 213,765 337,475
2009 305,618 209,827 178,600


Avondale Year-to Year Average Sale Price
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 251,250 278,918 337,475
2009 322,167 293,100 178,600


Logan Square Year-to Year Average Sale Price
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 710,878 325,626 223,900
2009 811,250 293,615 274,500


West Town Year-to Year Average Sale Price
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 729,477 388,762 451,150
2009 652,389 372,225 300,556


East Garfield Park Year-to Year Average Sale Price
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 20,500 244,250 182,750
2009 183,000 40,042 87,693


Near West Side Year-to Year Average Sale Price
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 731,770 358,324 0
2009 190,000 333,779 350,000

Information of the National Association of Realtors (NAR)

Washington Park Year-to Year Average Sale Price
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 0 163,429 0
2009 105,000 103,382 38,000

Information obtained by the National Association of Realtors (NAR)

Woodlawn Year-to Year Average Sale Price
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 35,000 121,883 133,500
2009 119,000 96,465 36,986


Chatham Year-to Year Average Sale Price
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 173,251 31,000 190,000
2009 90,586 12,000 162,814


Chicago Lawn Year-to Year Average Sale Price
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 173,251 0 125,494
2009 90,586 0 71,313


Bronzeville Year-to Year Average Sale Price
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Multi-Family
Single Family Condo
Bldgs.
2008 161,667 181,334 0
2009 394,333 172,000 0


Homeownership

6%
9%

Prime
Free & Clear
53% Subprime
32% FHA + VA

Information obtained from the National Association of Realtors

Nationally:

32% of homeowners have their homes paid in
full

53% have a prime mortgage

9% financed their home with a subprime loan

6% of homeowners have either a FHA or VA
loan

Foreclosures by Loan

9%

37%
Prime
Subprime
FHA + VA

54%


Foreclosures by Loan:

Subprime exposure is relatively small but yet
subprime loans make up a substantial portion
of foreclosure

Subprime loans account for only 9% of
homeowner mortgages, but they comprise
54% of foreclosure

Subprime loan exposure is decreasing

Illinois

30%
Prime
Subprime
FHA + VA
55%
Free & Clear Homes
6%

9%


Illinois

9%

Subprime
Prime
36%
55% FHA + VA

Information provided from the National Association of Realtors

Foreclosure rate up 58% over last year

“According to Pew Charitable Trust predict that in the next
2 years, 1 in every 33 homes will be in foreclosure
because of subprime loans made in 2005 and 2006”

Defaulting Subprime and Alt-A loans drove the
first stage of the mortgage crisis

The next stage of the mortgage crisis will be
driven by defaulting Option ARMs and prime
home loans

Information obtained from Credit Suisse by WSJ

Types Of Loans Severely Under Water (as 09/08)

25%

65% Prime Jumbo
Alt-A
40%
Subprime
Option ARM

48%

Information provided by Credit Suisse from WSJ

Median Mortgage Monthly Payment Median Qualifying
Priced Rate P&I as a % Family Income **
Existing Payment of Income
Single Income
Family
Home
Northeast 237,000 5.56 1,085 18.9 68,914 52,080
Midwest 138,400 5.62 637 12.3 61,978 30,576
South 159,300 5.56 728 15.7 55,553 34,944
West 159,300 5.60 998 18.8 63,806 47,904
2006 221,900 6.58 1,131 236 57,612 54,288
2007 217,900 6.52 1,104 22.4 59,224 52,992
2008 197,100 6.15 961 19.4 59,339 46,128

**Based on a 25% qualifying ratio for monthly housing expense to gross monthly income
with a 20% down payment

92
90.3
90
88
86.52
86 85.63 Nov. 2008
84.6
84 Dec. 2008
82.00 Jan. 2009
82
80.4 Feb. 2009
80 Mar. 2009
78 Apr. 2009
76
74
Consumer Confidence Index

Miller Realty Services is a real estate company that
offers commercial and residential real estate services
to individuals and companies. The mission of Miller
Realty Services is to make real estate services as
hassle-free as possible while maintaining the highest
level of customer service and ethics. Miller Realty
Services provides the most accurate and current
market data, expert market analysis and unparalleled
real estate advice to its clients. Miller Realty Services
strives to explore the most current technology and
marketing ideas to make our company the best while
maintaining industry standards.

Contact Us at (866)808-0023 or send an email to lasheamiller@msn.com

Chicago Residential Real Estate Market

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