Area home sales get boost as buyers see lower prices

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Updated: March 10, 2012 8:18AM

Sales of existing homes increased in both Franklin Park and Northlake during the last quarter of 2011, though prices were down.

Sales were up 38 percent in Franklin Park and 41 percent in Northlake compared to the last quarter of 2010, according to figures supplied by Midwest Real Estate Data, a Lisle-based company that supplies data for the regional real estate industry.

While sales were up, prices were down.

“I sold quite a few units, but they were less than $100,000 so we didn’t make much (money),” said Realtor Regi Ortega of Century 21/TK Realty in Addison, who has been selling homes in Northlake and the western suburbs since 1996.

Sales prices were down 27 percent in Franklin Park and 10 percent in Northlake during the last quarter of 2011 compared to the same quarter in 2010.

Ben Cocogliato, a Realtor since 1975 who works with Re/Max Regency in Franklin Park, said the increase is all about low interest rates.

“Interest rates are hovering around 4 percent,” Cocogliato said. “That’s helping the market.”

Having said that, Cocogliato said that 30-40 percent of his business is with foreclosed properties or short sales.

For Ortega, that figure is even higher.

“Last year, I sold four properties that were not in trouble,” he said.

While foreclosure is bad news for home owners, it also means lower prices for buyers.

Liliana Flores, who completed buying a house in Northlake on Jan. 31, was only looking at foreclosed homes.

“Because of the price range,” said Flores, who plans to move from her current Berwyn home in March.

She looked around for about a month and made offers on two other homes, but got outbid by other buyers.

While the poor economy is making houses more affordable, it is also making it difficult for many to buy houses. Prospective buyers should have at least two years on the same job, a credit rating of at least 620 and a minimum 3.5 percent down payment, Ortega said.

In addition, Cocogliato said, relatively high property taxes in Cook County are hurting sales.

“Little two- or three-bedroom houses are $3,500 to $8,000 a year (in taxes),” Cocogliato said. “It takes away from how much buyers can qualify for.”

Still, both Realtors are optimistic about future sales.

“It’s definitely looking better, like it’s heading in the right direction,” Cocogliato said.

“I think we’re bottomed out,” Ortega said.