Is the GreenZone in a Bubble? 62% Appreciation in 3 Years at 2722 N. Wilton in Lincoln Park

We last chattered about this 4-bedroom single family home at 2722 N. Wilton in Lincoln Park in August 2011.

See our prior chatter here.

At that time it was one of the few Lincoln Park single family homes to be on the market for $500,000 or less.

The catch?

The brown, purple, red line El tracks were directly behind the house.

If you recall, the house is built on a 25×75 lot, has a 1 car garage but there is space in the back underneath the tracks for 4 additional outdoor parking spots.

The kitchen has been redone with some new white cabinets, granite counter tops and sink. The kitchen window was also covered by cabinets (see the before kitchen in the prior chatter.) Is this a smart move- to remove a window?

It has a fully finished basement with a wine fridge which was also there in the 2011 sale.

From the prior listing pictures it appears that there was bathroom renovation work as well.

3 bedrooms are on the second floor with a den or office on the main level. In this listing, the den is called a bedroom. In 2011, it was only a 3 bedroom home.

It has central air.

In 2011, the house went under contract in just a few days and sold just under asking at $492,500.

3 years later it is back on the market asking $799,000.

Is another bubble brewing in the GreenZone?

April Frazer at Berkshire Hathaway Homeservices KoenigRubloff has the listing. See the pictures here.

Or see it at the Open House this Sunday, April 6, from 11 am- 1pm.

2722 N. Wilton: 4 bedrooms, 3 baths, 2800 square feet, 1 car garage

  • Sold in September 1996 for $165,000
  • Sold in August 1997 for $330,000
  • Sold in June 2005 for $525,000
  • Sold in November 2011 for $492,500
  • Currently listed for $799,000
  • Taxes were $9985 in 2011 and are now $10,990
  • Central Air
  • Bedroom #1: 20×18 (third floor)
  • Bedroom #2: 11×12 (third floor)
  • Bedroom #3: 10×9 (third floor)
  • Den/office: 7×14 (main floor)

33 Responses to “Is the GreenZone in a Bubble? 62% Appreciation in 3 Years at 2722 N. Wilton in Lincoln Park”

  1. As I’ve said before, the market is rife with those who picked up a relative bargain in the past few years, put a few bucks into it and are now trying to sell at ridiculous prices to take advantage of scarce inventory. There are plenty of places with scant evidence of recent significant improvements who are asking 20%+ more than they paid 2 or 3 years ago and/or easily eclipsing the 2006ish peak values prior to the downturn. Gouging is in vogue; as someone who is in the market I won’t feel the least bit bad lowballing someone like that if it comes to it.

  2. “There are plenty of places with scant evidence of recent significant improvements who are asking 20%+ more than they paid 2 or 3 years ago”

    In many cases, there was no need to put in improvements to get a higher price now. I bought a place in 2012, and now have a contract to sell it almost 60% higher. I did zero improvements to it. There were quite a few foreclosure/short sale bargain in 2011-2012.

  3. “Berkshire Hathaway HomeServices KoenigRubloff”

    Why’d you leave off “Realty Group”?

  4. The STOCK MARKET IS UP 70% since some time in 2011… CLEARLY BUBBLETOWN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    OH MY GOD SOUND THE ALARM(S)

    I FEEL THAT PRICES ARE TOO HIGH FOR SOMETHING!

  5. “I FEEL THAT PRICES ARE TOO HIGH FOR SOMETHING!”

    No, seriously Sonies. What do you expect to happen to the stock market and why?

  6. the reno looks really cheap and this place has zero curb appeal.

  7. Sid, I would never feel bad lowballing anyone, anytime. Nothing stings like discovering that you could have paid far less if you’d bargained harder. You may not score the place, but it’s easier to be worked up to a higher price than it is to work the price down once you’ve offered too much. When I make an offer, I enter into it with knowing just what max I am willing to pay, and if I can’t have it at that price or less, I move on.

  8. http://www.redfin.com/IL/Park-Ridge/217-N-Washington-Ave-60068/home/13651223

    An REO listed at $999,0000 in February 2014; relisted and reduced to $410,000 this week! Even at this price the lot doesn’t have teardown value. The REOs are gauging these days too!

  9. gringozecarioca on April 7th, 2014 at 10:44 am

    “What do you expect to happen to the stock market and why?”

    higher, but we have to see 1600 spx again, too.

  10. “The REOs are gauging these days too!”

    It seems the REO’s have done a complete 180 in most cases. It used to be that they would be listed lower, and then end up getting bid up (but still going for less than market). Now it seems they are listing above market, and then having reductions or accepting offers well below ask. There is a unit for sale I was looking at (non distress) for $280k. An identical tier REO listed for $380k and now reduced to $340k.

  11. They can ask whatever they want but it’s not a price until someone pays it.

  12. “The STOCK MARKET IS UP 70% since some time in 2011… CLEARLY BUBBLETOWN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!”

    As I said before- you really don’t understand the definition of a “bubble.” Please go educate yourself.

  13. “the definition of a “bubble.””

    “A bubble is a run-up in the price of an asset that is not justified by the fundamental supply and demand factors for the asset.”

    If you *really* believe that the loose money has been driving the housing market, how can you believe that loose money is not having an effect on other asset classes?

  14. It’s not just Chicago. The Green Zone of pretty much every desirable area of the country, especially the ELPs of such GZs, if you will, have low inventory/high prices/tight list-to-close price margins.

    As for making low ball offers, having made a few over the past couple of months, I will say this: I don’t “feel bad” making them, but I will admit that doing so seems to exact a bit of a toll (on the low-baller). Making what I consider a “valid low ball” takes some time and effort, and when the seller scoffs and counters your low-ball with list price, it’s not so fun.

  15. Against my better judgment, the time is ripe for a CC get together. Unfortunately for all of you, I’m not as interesting and opinionated in person as I am online, but regardless, I’d like to finally meet some of you. Maybe when Sabrina returns from west Africa or wherever she is, she may be willing to meet up for a drink in some bar. Not in Lincoln park. And As long as nothing for that meet up could ever be posted online, I’d be willing to meet. There are many of you I’d like to meet and have a few beers with.

  16. “meet up for a drink in some bar. Not in Lincoln park.”

    You, me, Sonies, Gary, maybe DZ and JZ (if we say his name enough)…is there anyone else left who actually lives here still? Maybe if nickel beer night at Joes doesn’t count as LP, we can run in to Bobbo. But sure, wth.

  17. “Against my better judgment, the time is ripe for a CC get together.”
    well sure now that there are only a handful of people still coming to this site. We could almost meet at your place for a barbeque

  18. “We could almost meet at your place for a barbeque:”

    You don’t want to see how I live, you will thank god/allah/shiva/zeus/wodin for your lot in life.

  19. Plus, tofu burgers suck!!!

  20. Tofu burgers? In more than two decades of frequent vegetarian “burger” consumption, I have yet to see one made primarily out of tofu. Maybe you all can convene the CC meet up at Grunts, and have a nice vegeburger in my honor.

  21. gringozecarioca on April 15th, 2014 at 1:31 pm

    “You, me, Sonies, Gary, maybe DZ and JZ (if we say his name enough)…is there anyone else left who actually lives here still?”

    Say Twin Anchors, throw in a promise from sonies to have 1/4 oz of Hindu Kush waiting for me… and I call Net Jet and book the Presidential Suite at the Ohio House..

  22. I’d rather not eat than eat that crap! Seriously dude… where did your man card go

  23. howdy y’all. I have been pretty slammed at work in recent years, but hope everyone is enjoying the real estate “surge” that we all know is coming soon. ha ha ha!

  24. I work for a market maker. As I understand it we’re the only one quoting out 18-24 month S&P options and we’re exceedingly good at it. We have quite a few in house academic events, one of which was surrounded on the topic of identifying financial bubbles.

    Want to know one of the best ways to see if we’re in a bubble or not? Talk to your neighbors. If Joe Schmoe garbage man is talking about investing in real estate, take your money and GTFO.

    With that said, we are in the beginning of a tech bubble, again. It could implode anytime in the next 1-3 years, though due to Yellen’s comments I’d say we’re about 2.5-3 years out from it. Youtube sold for 1.65 billion dollars in late 2006. And that was roughly the peak of our last bubble. Whatsapp just sold for 11.5 Youtubes. Think about that.

  25. “Youtube sold for 1.65 billion dollars in late 2006. And that was roughly the peak of our last bubble. Whatsapp just sold for 11.5 Youtubes. Think about that.”

    Youtube was bought for about 1.25% of goog, and Zuckerberg gave about 10% of FB for whatsapp–of course, Whatsapp also has, at acquisition, about $1B more 1st year revenue, on lower costs, compared to Youtube. Just sez to me that Zuckerberg thinks that FB is currently way overvalued (which well may have implications for the rest of the tech market, but may not).

  26. gringozecarioca on April 22nd, 2014 at 10:55 am

    “As I understand it we’re the ONLY ONE quoting out 18-24 month S&P options”

    I heard Buffet will go out to 20 years with you.. give him a call.. ok time for lunch… sushi.. SWPL :-) how i miss bob

  27. yeah comparing one of the most overpriced acquisitions of all time (whatsapp), to one of the best acquisitions of all time in completely different interest rate environments isn’t exactly apples to apples. But I do agree, some (maybe most?) of these companies are total POS’s but wall street is blasting them to the moon to stay competitive

  28. “With that said, we are in the beginning of a tech bubble, again. It could implode anytime in the next 1-3 years, though due to Yellen’s comments I’d say we’re about 2.5-3 years out from it.”

    Does anyone CARE if we’re in a tech bubble? I’m not talking about a stock market bubble. I’m talking about a real technology bubble.

    Let’s say we really ARE in one and it implodes. Who does it impact? The Bay Area. Some parts of New York and probably Austin. Maybe Boston and some here in Chicago. But the rest of the country doesn’t give a damn.

    I was in the Bay Area when the dot-com bubble imploded. The only reason it pushed the country into a recession was the collapse of the NASDAQ. If you just had the companies going under and people losing their jobs- it would have been contained in California, Austin and Boston. Heck, LA didn’t even notice that there were empty office parks in the Bay Area and a third less traffic and they’re in the same state.

  29. pretty sure lots of people would care about a tech bubble… since most of our manufacturing and recently created jobs are tech jobs. That being said, heavy investment into tech is not a bad thing for the economy overall, however it needs to be useful tech, not this mostly useless texting and pic sharing social crap. We are nowhere near bubble territory though in the stock market, how quickly people forget the insanity that was the late 90′s. there’s just a few companies now that resemble that and who knows they could possibly meet expectations down the line

  30. ” one of the most overpriced acquisitions of all time (whatsapp)”

    Based on forward revenue, Whatsapp was priced at a relatively small premium to FB–which is trading north of 15x forecast 2014 revenue. Youtube’s revenue, before goog? Was $15m. Sure it looks great now, with $5b+ in ad revenue (bc of goog), but if FB converts only 50% of whatsapp users to FB users, too, and can retain the independence of whatsapp (free of ads, free of data retention, not quite, but almost, free), should be an easy win 8 years from now.

    Not that the price wasn’t a total godfather offer. It was over 10x the valuation of the last pre-acq investment round.

  31. you mean fantasy forward revenues… but I’m one who thinks that FB is way overvalued, just like twitter (I made lots of $ shorting twitter actually lol) whatever, we aren’t anywhere near bubble land but all the maniac media are quick to say crap like that to get people to either watch, or so that they can say ‘i told you so’ should that day actually come

  32. “pretty sure lots of people would care about a tech bubble… since most of our manufacturing and recently created jobs are tech jobs.”

    They are? You mean Grainger, ITW, CF Industries- all based here in Chicago- are somehow creating tech jobs?

    Like I said- I lived through the last bubble in the actual bubble zone. The rest of the country didn’t even blink at the empty office parks in Silicon Valley. My friends in Nashville and Kansas City couldn’t give a rats ass about tech. A bust in the tech sector, if it isn’t extended to the stock market, would have very little impact on the rest of the country. It’s kind of like when the defense sector busted a few decades ago. The LA region got hammered but Chicago and New York? Not so much.

  33. This house is still on the market 37 days later.

    No reductions in price yet.

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