It’s hard to make money out there: 700 W Van Buren
For downtown condos, there are a couple of price ranges that are having difficulties in this market.
One of those ranges is $400,000 to $600,000. At this price, without the wacky loans, you either need a very good paying job or two incomes that also pay very good. Take away the wacky loans and actually require a downpayment and the pool of buyers in this price range shrinks.
But inventory is just huge. There are too many $500,000 units.
Sellers in this price range in just average buildings (not prestige buildings and with nothing much unique about their unit) are having a hard time. Many are resorting to price reductions. And some are finding they will not make a profit if they bought in the last two to three years.
700 W. Van Buren is one of those buildings. You don’t think much about it- even when passing it on the Eisenhower Expressway (sorry!). I’m not saying there is anything wrong with it- but it’s one of those buildings in the loop/near west loop that is just there.
Some sellers are taking it on the chin there. I just saw this post on Craigslist saying that they just lowered $49,000 and they are willing to finance. It also says that they put in $100,000 in upgrades. If so- they are really losing money.
Unit PH#3: 2 bedroom, 2.5 bath, 1433 square feet, large 7 x 21 balcony with landscaping facing east
- Currently listed at $499,000 (parking additional)
- Sold in August 2005 for $480,000
- Sold in October 2003 for $442,000
There has been some appreciation over the last four years, but once you pay closing costs and your realtor- you’re pretty much losing money.
It’s rough out there in this price range.
Maybe people are realizing that the West Loop isn’t as established and safe as the 2005/2006 prices suggest?
I really don’t feel like running stats but would it be ridiculous of me to infer that the prices of 2005/2006 were the result of fast money moreso than the establishment of a walking neighborhood that is safe, entertaining, and established? I mean I kinda like the neighborhood, but “kinda like” is a long way from “would really like to live here and pay river north prices.”
There are so many 2BR’s in the West Loop demanding low 400’s it’s ridiculous.