South Bend Real Estate Report: June 2009

by Nick Molnar on July 1, 2009

June 2009 saw 250 sales close for a combined total of $30.99 million. There are 2,621 active listings in the MLS today. In aggregate, sales closed at about 94% of the asking price at the time of sale, though at only about 86% of original list price. That means sellers aren’t generally accepting very low bids, but are lowering their prices gradually to the point where they sell near list price. The average number of days on the market for sales that closed in June was 133.

We are seeing more FHA financing, and considerable interest in the tax credit for first time buyers. Condo sales have been slow, as have sales above $300,000.

  • in June 2006 there were 28 sales over $300,000
  • in June 2007 there were 20 sales over $300,000
  • in June 2008 there were 21 sales over $300,000
  • in June 2009 there were 11 sales over $300,000

Here is the long term graph of sales volume in the South Bend Area MLS

High Price Sales

There was a sale at $1.13 million on Meadow Bank Lane in Elkhart. Despite being nearby, Elkhart is an entirely different market and I don’t work in it – the taxes are different, the political influences, the environmental concerns and county level issues, where the improving and declining areas are, pretty much everything that influences real estate sales other than quality of construction is different for Elkhart County when compared to St. Joseph County. Despite that, many agents work in both areas, and some include Michigan as well. We’ve decided to focus and do a better job on a smaller area – St Joseph County and especially the areas of South Bend, Mishawaka and Granger near Notre Dame. So I won’thighlight it here, but because this sale is in the South Bend Area MLS, I didn’t strip it from the stats.

In St. Joseph County, the high price sale was 51445 Shamrock Hills Drive. It  closed at $760,000. It hit the market June 2008 at $875,000 and was listed for $825,000 when it sold.


There were 3 sales over $500,000. There are 73 listings above that price.
There were 11 sales over $300,000. There are 277 listings above that price.
There were 19 sales over $250,000. There are 373 listings above that price.
There were 42 sales over $200,000. There are 550 listings above that price.

Low Price Sales

223 Bronson seems to have adjusted it’s sales date and price to again be the lowest price sale – the new info indicates it sold for $5,000.

Excluding Bronson, the low price sale is 209 N Pagin St which closed at $6,900.

There were 122 sales below $100,000. There are 1,234 listings below that price.
There were  61 sales below $50,000. There are 469 listings below that price.
There were 35 sales below $25,000. There are 191 listings below that price.

Here is the scatter graph, with every  sales this month.

Financing

FHA loans were the most common method of payment in June, accounting for about 35% of sales. They are becoming common because guidelines for conventional financing are increasingly more strict. Conventional financing generally requires a 20% downpayment and solid credit scores. FHA loans allow people buy homes with just 3.5 % down and lower credit scores.

Notre Dame Condos and Townhomes

Sales were again slow for Notre Dame condos andtownhomes.

Two units closed in the North Shore Club, a 3 bedroom, 2 bath townhouse at $117,000 and a 2 bedroom, 1.5 bath condo at $87,500. That leaves ten North Shore Club units on the market priced from $59,900 to $162,900.

One condo sold in Oak Hill at $198,000, which is the second highest price ever paid in Oak Hill, behind a sale for $230,000 in April 2008. The unit that just sold, 1561 Oak Hill Drive P1, was an upgraded corner unit with walkout lower level for a total of 4 bedrooms and 3 baths. That leaves 11 on the market priced from $145,000 to $234,900.  listings here. It was the first sale in Oak Hill since June 2008, but shows there may still be demand for walk to Notre Dame condos priced below $200,000 – a niche no other condos fill.

A condo sold in The Forest for $185,000. That leaves 6 on the market, priced from to $164,900 to $212,000.

There was one sale in the Main Street Villas, a 4 bedroom, 2 bath home that closed at $207,000. That leaves 10 on the market, priced from $175,500 to $219,900.

There were another handful of sales at other condo complexes and villa communities, but none that could really be stretched to be called a Notre Dame condo.

A quick rundown of the other complexes we watch:

  • Ivy Quad is not listing any condos in the MLS
  • Stadium Village has three condos listed for sale, from $350,000 to $460,000
  • Eddy Street Commons apartments are reportedly renting well but the condos available for purchase are reportedly delayed. It’s unlikely any will be complete this year.
  • Pendle Woods has 4 unlived in homes listed in the MLS, priced from $275,000 to $400,000. A different Pendle Woods villa is going to sheriff’s sale July 16th.
  • Irish Crossings has 11 townhomes for sale, including one resale listed for more than the seller purchased it for in April 2008.
  • Wexford Place has one condo for sale. It’s a resale and has been on the market for just over a year now. It’s listed at $324,900 – above what the seller paid when s/he purchased it in July of 2007.
  • Dublin Village has 5 condos listed for sale, from $214,900 to $295,000
  • Stonebridge has two units in the MLS, at $225,900 and $279,900
  • Savannah Pass has 6 condos or villas listed for sale, from $127,500 to $169,900
  • New London Lake has one condo available, listed at $121,500. It has one unit pending, a townhouse.
  • Woodbridge has 5 condos listed for sale, from $68,000 to $125,000

That’s the June 2009 market report for South Bend real estate. It’s the most current and thorough you’ll find, but it’s still not precise enough or complete enough to make informed decisions on if you are buying or selling real estate in the South Bend Area. If you’d like a personal consulatation or need help with South Bend Area real estate, contact a realst8.com agent.


{ 7 comments… read them below or add one }

Econ July 3, 2009 at 1:11 pm

Not good numbers…..doubt there will be any uptick this year. 2010 may be slightly better especially at the start of the year but will probably still be below all the other years except 2009. On an inflation adjusted basis that is bad.

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Joey July 6, 2009 at 1:14 pm

I really like the brick and stone work at Ivy Quad. Very nicely done indeed. The problem is parking…I don’t know why developers cram units in and skimp on parking as if potential buyers wouldn’t notice, especially in this market. To have TANDEM PARKING is just silly and a real pain. Add to that a guest parked in front of the garage and you have THREE DEEP tandem parking. Come on, change it in future buildings and I’ll take a second look.

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Steve July 9, 2009 at 10:56 am

Do you know what the address is of the unit going to sheriff’s sale in Pendle Woods?

I agree with Joey on the tandem parking situation at Ivy Quad. The build quality of Ivy Quad is outstanding according to a person who toured the units. The person went as far as to say the condos are built better than most homes! Lets hope out of towners can ignore the parking situation because they buy most of the units around campus rather than local people.

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Nick Molnar July 9, 2009 at 1:14 pm

53424 HANSEL LN

You can see the sheriff’s sale lists at http://www.sjcsheriff.com/sheriffsale.htm . A word of caution, there are many, many things to know before you buy at a sheriff’s sale.

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Joey July 9, 2009 at 9:33 pm

That Pendle Woods house was owned by that guy who the FBI was investigating for major real estate fraud, no?

http://www.realst8.com/blog/SBT_mortgage_fraud.pdf

So, that is why the judgment is sooo high. Probably fraud so now in sheriff’s sale. Was this the same house that the pipes froze in and flooded the basement?

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Nick Molnar July 11, 2009 at 8:22 am

I believe it’s the same individual.

I don’t know the condition of the basement – and that highlights one very important thing about buying at the sheriff’s sale…know the condition of the house. You buy where is, as is.

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Anon Alum July 31, 2009 at 2:57 pm

July 2009 number should be interesting and telling as to where the real estate market in our area is headed. Thanks again for the reports Nick!!!

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