South Bend Real Estate Report: August 2009

by Nick Molnar on September 2, 2009

The South Bend Area MLS has closed sale information for 279 sales totalling $31.48 million. That is up from July’s figures though still the lowest total sales volume for any August back to 2001. August 2008 registered $39.17 million.

Sales by Price

There were three sales over $500,000 including two over $900,000.
There were two sales at $3,500.
147 sales were between $1 and $100,000
102 sales were between $100,001 and $200,000
30 sales were over $200,000
The median sale was $92,500

Sales by Financing

Financing remains an issue to watch. Closings are frequently taking longer than the 30 days after contract that used to be common.
108 sales were financed with a conventional mortgage. They averaged 42 days from contract to closing.
79 sales were purchased with cash. They averaged 30 days from contract to closing.
78 sales were financed with FHA loans. They averaged 40 days from contract to closing.
10 sales were financed with VA loans. They averaged 50 days from contract to closing.
4 sales were financed in other ways or did not specify financing.

Condos and Townhomes

Townhomes took two of the most expensive sales in August.
  • A newly built 5,700 square foot, 8 bedroom, 8 bath townhouse at Stadium Village sold for $905,000.
  • A newly built 2,722 square foot, 3 bedroom, 3.5 bath townhouse at the Townes at Kamm Island in Mishawaka sold for $445,843
Condos also sold at the North Shore Club (two),  New London Lake and Sedgewick Place.

{ 5 comments… read them below or add one }

Dean September 2, 2009 at 8:15 am

Thanks again Nick. I look forward to your monthly reports.

It will be very interesting to see what happens when (if) the $8K tax credit ends.


Irish Eyes Are Watching September 2, 2009 at 10:50 am

Based on past numbers, sales should go down substantially for the rest of the year compared to April-August period. Will be a tough slough through winter.

Are you sure about the Stadium Village sale? It must have been two units combined to make one unit for that square footage although none of the listed floor plans could be combined to make 5,700.

Any reports on Eddy Street Commons? Looks like Ivy Quad sold a few according to the last topic posts, would also like to know more specifics. The Notre Dame oriented projects are the most interesting since those are sort of in addition to the regular real estate activities for our area. Just looking at the sheer number of units related to Notre Dame and the lack of investor enthusiasm for real estate, I would guess Eddy Street Commons has 10 years for the first phase from start to completion. Irish Crossings and Stadium Village should wrap up in 2010. Notre Douglas Condos…who knows. Ivy Quad probably at least six years from start to finish based on about 11 sales per year (although a ten year time frame from land acquisition to completion is probable). Pendle Woods, with resales coming, the final build out could be another three+ years to complete making it at least an eight year project (ouch, realistically a ten year project). You also have to remember that there were numerous other ND related developments proposed including an uber-lux development on the South end of ND Ave…doubt we get to see any earth move on those. There is a market for sub $100K and sub $200K new construction, maintenance free, lock and leave condo units, but none are being built within walking distance to campus (North Douglas condos would have done well had they actually been near campus). Moreover, Stadium Club lost an opportunity to really go back to condo by just doing a cheap paint job (and an ugly ugly ugly one at that). And of course there is Keenan Court, what can I say except the wrong product in the wrong location at the wrong price point with the wrong marketing. The pendulum has swung back to renting as owning real estate in the ND area no longer gives any rate of return on investment. I guess the most interesting thing will be watching the new apartments on Vaness (Irish Row) and seeing what the two Clovers are up to…….


Irish Eyes Are Watching September 2, 2009 at 10:54 am

Oppps…..should have typed:

“Moreover, Stadium Club lost an opportunity to really go back to condo BUT THEY JUST DID a cheap paint job (and an ugly ugly ugly one at that) INSTEAD OF A COMPLETE RENOVATION.


Irish Eyes Are Watching September 11, 2009 at 7:54 pm

What prices were the Ivy Quad units sold for??? I don’t know why developers are so secretive about that stuff when it ends up being public record. During the housing bubble there used to be some sham sales upfront to establish comps for sales and mortgage loan purposes. Not really much of a problem in the depressed South Bend area.


Nick Molnar September 11, 2009 at 10:48 pm

I’ll try to find the sales disclosures for the Ivy Quad sales next week.
They aren’t yet on the state of Indiana’s web page of sales disclosures, and the developer hasn’t yet opted to share them.
Check back shortly for photos of Ivy Quad’s model unit.


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