South Bend Real Estate Report: Jan-May 2011

by Nick Molnar on June 15, 2011

Between January 1st and the end of May 2011, there have been 940 sales for about $98.9 million recorded in the South Bend Area MLS. It breaks down like this:

  • January: 141 sales / $12.6 m
  • February: 127 sales / $10.5 m
  • March: 201 sales / $20.4 m
  • April: 228 sales / $27.3 m
  • May: 243 sales / $28 m

To see the figures plotted against past years, follow the red line in the graph below.
Click for the full size image in a new window.

 

Monthly Real Estate Sales From the South Bend Area Blog

Real Estate Sales Prices

The high price sale was $1.39 million in April, which is such an outlier that it skews the scatter graph. Below are graphs that show every sale reported in the South Bend Area MLS for Jan-May 2011 (for completeness), and just those above $500k (for clarity).

 

Sales by Type of Financing

Cash sales account for nearly half of the number of sales this year, but only about one quarter of the sales volume. Many low price sales are cash purchases. The situation is nearly reversed for conventional financing, which accounts for just under 27% of sales by number but more than 44% of sales by volume. FHA loans contribute about 23-24% to the total of both number of sales and dollar volume of sales. Other types of financing, including VA loans and seller-financed sales, remain small parts of the South Bend market.

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Finished Rehabbing, Back to Blogging

by Nick Molnar on June 8, 2011

Two years ago, in May 2009 I bought a house that needed some work. Two months ago, in April, I decided to move up the completion of the project by a year and sell the house this summer. From that decision until today, there haven’t been any new features on the South Bend Area Blog, but we’ve renovated the kitchen, two baths, regrew the yard and a lot more. The house is now done and listed for sale. New blog posts, especially analysis of sales in 2011 are coming soon.

If you want to see the house that kept me busy,
Before and After Photos: http://bit.ly/1452RidgedaleBeforeAndAfter
Just the Pretty Pictures: http://www.1452ridgedale.com/

*important note: The word “I” is used above only for convenience. My wife, Tracy, probably contributed more than me to this project. Many other people were involved and helped with this renovation in important ways, especially Jeff Kepschull and Joe Molnar.

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South Bend Real Estate Report: January-February 2011

by Nick Molnar on March 21, 2011

The South Bend Area MLS records reflect that:

  • In January 2011, there were 138 sales for ~ $12.1 million in volume.
  • In February 2011, there were 124 sales for ~ $10 million in volume.

Those numbers are much lower than 2001-8 , though they do compare with 2009 and 2010, see the long term graph below.

Personally, I am starting to see a considerable increase in “activity,” with potential buyers wanting to see condos or houses and homeowners investigating listing their properties for sale. But there is still a considerable gap between buyer and seller price expectations, which is keeping the number of actual sales low.

The high price sale so far this year is 13336 Kern Road in Mishawaka. It’s a 3,316 square foot 4 bedroom, 2.5 bath home on 20 acres. It was listed for $700,000 in September 2010 and sold for $450,000 January 25th, 2011.

13336 Kern Road, Mishawaka, IN

 

Here is a scatter graph, reflecting every reported sales price for January and February 2011:

Sales Prices from January and February 2011

and here is the long term graph of monthly sales volume:

Long Term Sales Graph for South Bend Area Real Estate

 

 

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Champions Way at Eddy Street Commons Update: January 2011

by Nick Molnar on January 27, 2011

Eddy Street Commons is the epicenter of development near Notre Dame:

  • It’s the largest and most ambitious development with restaurants, retail, offices, apartments, townhomes and condos.
  • It’s in the location most tied in with the campus,  Eddy Street runs through the university and the development.
  • It’s backed by the biggest players: Notre Dame supplied the land and participates in marketing the project, the city of South Bend removed the ash that had been dumped on the site and built a parking garage, Kite Realty of Indianapolis led the development efforts.

Housing at Eddy Street Commons

And though the site plan contains four types of residences, the only ways to live at Eddy Street Commons now are to lease an apartment or buy at the first housing project being built, Champions Way.

Champions Way consists of 62 units in 9 buildings. It fronts to Angela Blvd and wraps around a small pond with a footbridge.

Here are a few unretouched photos I took on January 3rd, 2011:

And here are a few more photos.

Sales at Champions Way

Notre Dame bought the first building of 9 units fronting to Angela. One is currently used as the sales model. The others are rented as transitional housing to visiting professors, coaches, etc. I was quoted rent for University employees to be about $2,500/month + utilities.

The 16 units in buildings 2, 3 and 4 are sold. According to the developers, 15 of the 16 units are complete and have been delivered to the buyers and the 16th will close in February. I was able to locate disclosures for 10 of the sales in the county records:

building 2 / 1246 Duey
  • unit 22, 12/30/2010. $460,917.18 / personal property$15,352
  • unit 23, 10/1/2010. $448,770.
  • unit 24, 6/29/2010. $404,232.85 /personal property $55,044
  • unit 25, 6/16/2010.  $460,639.57 / personal property $4,225
building 3 / 1238 Angela
  • unit 31, 6/11/2010. $472,446 /personal property $4,900
  • unit 32, 7/19/2010. $426,983 / personal property$8,366
  • unit 33, 5/14/2010. $712,102.44 / personal property $23,000
  • unit 34, 5/7/2010. $443,785 / personal property $3,500
  • unit 35, 5/20/2010. $481,016 / personal property $3,000
building 4 / 1240 Duey
  • unit 41, 9/24/2010. $448,205.13 / personal property $4,225

That’s 10 verified sales for not quite $5 million. Include the 9 units Notre Dame bought and it’s 19 of 62 total units, or ~31% of the project. Use the developers figures of 15+9 and you get 24 sold, or ~39% of the project complete.

Champions Way and Other Communities Near Notre Dame

I believe Champions Way has the highest average sales price of the new developments near Notre Dame, falling in the mid $400s. (Stadium Village possibly has a higher average sales price at this point, but their numbers are skewed by the low number of sales and a single high price sale that was  really two combined units). For that premium, you get a prime location, units that each have a different look/style than those next to them, and of course many options and upgrades. What you lose at Champions Way compared to other communities at the same price is outdoor space (size of the patio/sunroom/deck), a few parking spaces, and some square footage.

Champions Way is the hot development now. That may change when Eddy Street Commons begins construction on the condos that will wrap the garage or other housing options. Look past that temporary excitement and compare the communities on their features. Champions Way has some compelling advantages. And it falls short of its competition in other areas. It may be the best fit for your needs – it depends on the intended use of your ND home. What’s best for an investment isn’t necessarily the same as what’s best for occasional use, and that isn’t the same as what’s best to live in full-time. Compare your options and shop smart. Call me if you want help.

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Oak Hill Condo Listed For Lowest Price in 5 Years

by Nick Molnar on January 24, 2011

Oak Hill is not fancy. In fact, nearly every other condo/townhouse complex near Notre Dame is bigger, nicer and offers better parking. But Oak Hill is generally the most affordable.  Oak Hill, which was built around 1988, was the the first popular condo complex next to Notre Dame. New London Lake, built around 1978 has age and rental restrictions that prevent it from really appealing to students, Jamison, built around 1984 never gained the same level of visibility and demand, and the other options like North Shore Club (~1971) and Woodbridge (~1972) are further from campus.

And Oak Hill’s position as the place to buy if you wanted a condo near Notre Dame was reflected in the prices it commanded.  From 2001 to 2003, prices trended from about $70,000 to about $90,000. In 2004 they entered six figure territory. By 2006, sales were commonly above $150,000 and a few units sold above $180,000. In March of 2008, one Oak Hill condo sold for $230,000.

But many new maintenance-free communities have developed near Notre Dame:

  • Dublin Village, about 2005/6
  • Wexford Place, about 2007
  • Irish Crossings, first sales about 2007
  • North Douglas Condos, first sales about 2007
  • Keenan Court, first sales about 2007
  • Stadium Village, first sales about 2008
  • Ivy Quad, first sales about 2009
  • Champions Way (at Eddy Street Commons), first sales about 2010

Those new options, combined with upscale rental apartments now available at Irish Row and The Foundry at Eddy Street Commons, have  put tremendous pressure on the prices at Oak Hill. In 2010, there were four sales, from $125,000 to $145,000. There are currently 11 Oak Hill condos listed for sale with Realtors, 10 of those are priced between $117,000 to $149,900.

The eleventh Oak Hill condo currently for sale  is noteworthy: 1525 Oak Hill Drive recently cut its asking price to $99,900. That’s the first time a price at Oak Hill has dipped below $100,000 since May of 2005 when one condo listed for $90k sold for $84k and another listed at $93k sold at full price. 1525 Oak Hill Drive has been for sale since March 2008, when it was priced at $189,900.

1525 Oak Hill Drive is not in bad shape. Here are some candid photos I took today. In its fair condition, the price is a significant test for Oak Hill. There is a place within the broader Notre Dame market for affordable condos. But the price that will quickly sell an Oak Hill condo hasn’t been found. With price cuts like this, we should find it this Spring.

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