Short Sale at 51% Off the 2006 Price: 3100 W. Berteau in Irving Park
This 2-bedroom unit at 3100 W. Berteau in Irving Park (or is it Albany Park? Redfin calls it Irving Park) recently came on the market.
It is a short sale and is listed 51% under the 2006 purchase price.
The midrise vintage building, constructed in 1927, was a 13 unit conversion in 2006. It is 6 blocks from Horner Park.
The unit has all the new construction finishes including cherry wood floors, granite counter tops in the kitchen, stainless steel appliances and a marble bath.
There is central air, a washer/dryer in the unit and gated parking.
Is this a deal for the neighborhood and square footage?
Cynara Baines at Exchange Realty Partners has the listing. See the pictures here.
Unit #2: 2 bedrooms, 1 bath, no square footage listed
- Sold in May 2006 for $264,500
- Lis pendens filed in December 2009
- Originally listed in September 2010 for a week at $195,000
- De-listed
- Currently listed for $129,900
- Assessments of $180 a month
- Taxes of $3618
- Central Air
- Washer/Dryer in the unit
- Gated parking
- Bedroom #1: 13×11
- Bedroom #2: 10×10
It’s Irving Park. Census tract 1606.
could those photos BE any darker?
puke
Yeah, the ongoing photo problem. At least they confirm that the property includes a toilet (and it’s closed). What is amazing is when you have $1MM+ properties with photos like this and you see that a lot.
This property isn’t an exception in this neighborhood. I saw numerous other listings all 50% or more below peak pricing.
FYI: Toll Brothers reported earnings today. It said that customers are still on the sidelines. Backlog is at 1996 levels. It sold 700 homes in the quarter compared with 860 last year. Average price was about the same in both periods: $565,000.
“Based on the very low housing production over the past few years, we believe that pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence,” said Chairman Robert Toll said on Thursday.
“…pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence”
2016
EJ – take a look at the stock market and consumer confidence indices – they are rapidly increasing. come on man, ride the wave…
“…pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence”
2016
Optimistic!
“This property isn’t an exception in this neighborhood.”
When the tip of the iceberg appears, that means the danger has passed, right?
Illinois is currently the 3rd highest state with 23.0 months’ supply of distressed homes.
The Chicago CBSA is currently the 3rd highest with 30.2 months’ supply of distressed homes.
http://www.corelogic.com/uploadedFiles/Pages/About_Us/News/CoreLogic%20Shadow%20Inventory%2011-22%20FINAL.pdf
Redfin shows it as under contract (pending) already. No idea if it’s a good deal or not, I know nothing about this hood.
We’ll be fine G. This ocean vessel is state of the art for its time and a feat of modern engineering. Rich people aren’t stupid and look how many are on board. lol
It shows as under contract so someone must have liked the price. For a vintage building they ruined the inside by removing all the original character.
Pending, like many, many other properties seem to be right now.
Of course, let’s not let the data get in the way.
http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html
Housing will still fall for the non-prime hoods for at least another 18-24 months. There’s just too much inventory either on the market, or soon to be on the market (bank owned). Prices got way too far ahead of incomes in many areas.
This specific property is too hard to tell. Horrible job on the listing photos. Price still may be too high. If there’s not a lot of issues with the place, I’d say around $120,000.
Oh my favorite polish gut rehab special.. these buildings should have remained rental stock. UGH
Look at the (single LOL) sink in that kitchen… its in the corner right next to the dishwasher so you can’t even do dishes in the sink when you open the dishwasher door. Also why does the refrigerator have its own room?
“This condo is a perfect 10”
LOL no, unless that’s 10 out of 100
“Look at the (single LOL) sink in that kitchen… its in the corner right next to the dishwasher so you can’t even do dishes in the sink when you open the dishwasher door. Also why does the refrigerator have its own room?”
Agreed, that is one of the most convoluted kitchen layouts I have ever seen. What were they thinking?
New contracts. Dead cat bounce.
This unit is overpriced. I looked at a few 2 BRs in this area back in September. All were in my budget for a condo under 75K. This building looks exactly like all the rest – vintage buildings stripped of all original character with uninspired finishes and odd layouts. 130K for a 2/1 in this area is too much. Taxes of $3,600 are too much.
I like Albany Park north of Montrose. Personally, the area bordered by California, Kimball, Montrose and Irving park is seedy. A lot of run-down apartment buildings. Then Kimball over to Elston is fine again. Working class, well taken care of SFHs with apartment buildings here and there and lovely, quiet streets.
My overall impression of the area where this unit is located was lots of loud kids roaming around. Lots of broken glass. If you pull up a streeview of this property on Google maps and look across the street at 3101 W Berteau, I can’t confirm it because it is a little blurry, but it appears the garden level windows of that building have been completely boarded up.
Yes, this unit is cheap, but it’s not a deal. I wasn’t jumping on anything I saw at 60K.
“New contracts. ”
Likely signed when rates were 40bps lower. Hope they got a good lock.
“Housing will still fall for the non-prime hoods for at least another 18-24 months.”
Prices are still falling in prime hoods and will for sometime as short sales and foreclosures become an ever larger share of the market. It’s never been cheaper to buy that 2BR here in the Gold Coast. Property sits forever unless it’s priced at ’01 – ’02 levels.
“Based on the very low housing production over the past few years, we believe that pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence”
This is a great example. I own Toll Brothers. The bears here are free to short it. Anyone short? How about short the S&P?
“Of course, let’s not let the data get in the way.”
Rest easy, JMM, you aren’t.
City of Chicago
Attached & Detached Single Family
October contracts
2009 = 2,093
2010 = 1,623 (-22%)
900 of the Oct 2010 contracts are contingent/pending
Yeah, this contract data is interesting. I’ve been tracking and contracts are not down as much as closings – on a % basis. There is some evidence that contract backlog is building – may be the short sales.
But the article discusses pending sales…not sure if the article is aware of the difference between contingent and pending contracts. I wouldn’t consider a short sale contract pending until all contingencies have been satisfied, with the biggest one being lender approval.
I’ve been contingent on a short sale for 5 months now with all requirements satisfied but still no word on anything…I’m getting really tired and impatient, especially because for 3 months before this contract I was given the runaround on another short sale…
Anybody can sign a contract but not everybody can close. Plenty of people out there want to buy housing – pent up demand. Too bad there are lending contingencies. You know, like good credit, down payments, etc. I’ve had plenty of contacts come across my desk and when I look at the name of the buyer on the contract I’m like “this won’t close.” I had one contract a few weeks ago the buyer was angry at his mortgage broker for pulling his credit ‘on the wrong day’ because his score came back a 565, so he couldn’t qualify. He wanted the broker to wait a few days while he tried some credit repair schemes, of course, to no avail.
This is the way it should be. The prudent with good incomes should get the best ‘deals’ in housing. The world was upside for so long that people thought the boom was normal. Owning a house is a major responsibility and shouldn’t be taken lightly or just given to anyone.
Chris M, it was from a NAR release. The MLS has separate categories that should be used as you indicate. However, the NAR utilizes contract totals for their “pending” data. Typical garbage where they are back to quoting the MTM results (+10.4%) instead of the YOY results (-20.5%.)
Realtors are marketing agents. It is important to keep that in mind whenever they “analyze” data.
Explanation & data from NAR:
http://www.realtor.org/research/research/phsdata
“Rest easy, JMM, you aren’t.
City of Chicago
Attached & Detached Single Family
October contracts
2009 = 2,093
2010 = 1,623 (-22%)”
Your comparison is incorrect. Apparently you don’t know the difference between a sequential change and a YoY change. Run me sequential Sep / Oct please, and make sure those pitch books are clean for our meeting.
Gary, the last couple of months have seen 20-30% YOY rises in short sale closings in Chicago. I believe there is evidence to support that increased short sales will increase contract backlogs. Foreclosures have likely been having the opposite effect since so many are relatively quick cash closings. Changing proportions of various sale types would appear to be an element of any contract backlog.
“Typical garbage where they are back to quoting the MTM results (+10.4%) instead of the YOY results (-20.5%.)”
Garbage? Because October is somehow seasonally stronger than September? Please explain that one.
attemtping to buy a house with a 565 credit score?
jeesh… what neighborhood?
“However, the NAR utilizes contract totals for their “pending” data.”
In that case, I agree that short sale contracts are a big part of the numbers and those generally fall apart before lender approval.
I’m a real estate broker–on the side of my main job–so I assumed that pending really meant pending. I agree that this data is spun in a misleading manner.
“fall apart before lender approval”
Isn’t the point to demonstrate there are buyers out there at current lists (to the contrary, a lack of activity would suggest pricing is too high)? If one deal falls through, presumably said would be buyer will find another. Activity is the litmus here. Activity leads closings. Closings lead stabilization.
Re: mortgage rates — jumbos are about only about 25bps off conforming. That is the tighest they have been in quite some time. Good news for “just above the conforming cut” buyers — quite a few of these in the 600-800k PP range.
I’d rather not say but it was a sub-100k foreclosure in a neighborhood where you or I wouldn’t choose to live.
But it’s counted as an Oct. pending contract. It officially died a few days ago.
“#Sonies on December 2nd, 2010 at 11:19 am
attemtping to buy a house with a 565 credit score?
jeesh… what neighborhood?”
“Garbage?” – JMM
“I agree that this data is spun in a misleading manner.”
– Chris M
That was my point, too.
“Because October is somehow seasonally stronger than September? Please explain that one.” – JMM
Never said it was. Are you saying that September is somehow seasonally stronger than October? Please explain that one.
“Your comparison is incorrect. Apparently you don’t know the difference between a sequential change and a YoY change.” – JMM
Apparently you didn’t think I already had the answers.
City of Chicago
Attached & Detached Single Family
Contracts
Sep 2009 = 2,136
Oct 2009 = 2,093 (-2.0%)
Sep 2010 = 1,633
Oct 2010 = 1,623 (-0.6%)
Total contracts signed between 2005-2010 for each month:
Sep = 12,799
Oct = 12,782 (-0.1%)
Average of annual monthly change of -0.3%
NAR’s seasonal adjustment for Oct 2010 was -6.1%, and it was -3.6% in Oct 2009. Those do not appear to be very applicable to Chicago’s market.
BTW, the way this contract data works (unless your data is different than mine) is that once a contract falls through and the listing is reactivated it no longer shows up as a written contract. Consequently, each month’s contracts decay about 15% over the course of the subsequent 2 – 3 months.
Yeah the history still shows that a contract existed but when you pull the records by MLS ID it won’t show that a contract was written and fell through – just that it is currently active.
Getting back to this condo, it does include parking. That side of Kedzie seems to have improved crime wise and there are a ton of new restaurants and bars opening on Irving Park Rd between California and Kedzie.
For anyone who cares I just got another phone call from somebody I know about a contract that was signed today. It’s on its way over in the fax machine to my attention (but I refer my RE contracts to someone else). I put the odds at 50:1 it will actually close….credit and lending issues for sure. Count this as a December ‘pending’ contract….hahahhaha
I told you there was pent up demand – among the masses of people who don’t already own a home, have poor credit and a $1,000 down payment.
The demand is the probably more today as it was during the subprime boom. Every unqualified buyer is salivating over $90k foreclosures outside the green zone. Yet that mortgage is so elusive to the guy who can’t be bothered to pay his capital one card on time…
“Never said it was. Are you saying that September is somehow seasonally stronger than October? Please explain that one.”
No I was not saying that. Where would you have gotten that from.
Sequential matters more (you call it MTM, which is an acronym more commonly associated wih mark to market in financial circles, but whatever) than YoY if seasonality is not an issue. I already know 2010 trend versus 2009, what is interesing is what is happening sequenially in 2010. Lastly, I am not sure your comparison for Chicago is correct per Gary’s comment and the data I looked at.
Let none of this change the fact that Chicago RE is likely to underperfom the much malign suburbs.
One reason:
Cullerton to Chicago Hipsters ad Other Urban Yuppies: “You Are All F’d”
“The reality is that this change would mean a property tax increase of at least $550 million for Chicago property taxpayers — or a nearly 60 percent increase,” Saffold said. “This would be a staggering blow to property taxpayers. This would, in fact, be the largest property tax increase in the city’s history.”
http://newsblogs.chicagotribune.com/clout_st/2010/12/senate-passes-pension-bill-that-would-make-chicago-pay-up.html
Higher taxes means a lower PI payment to meet DTI limits. How do you get lower PI payments when interest rates are already low? Lower prices, people. Lower prices.
“I told you there was pent up demand – among the masses of people who don’t already own a home, have poor credit and a $1,000 down payment.”
And, it appears, $1,000,000 downpayments too.
http://www.redfin.com/IL/Kenilworth/140-Kenilworth-Ave-60043/home/13786255
I kinda love the Kenilworth house… Thankfully I do not have 4Mil to spend on such an awful idea.
“I’ve been contingent on a short sale for 5 months now with all requirements satisfied but still no word on anything…I’m getting really tired and impatient, especially because for 3 months before this contract I was given the runaround on another short sale…”
Milkster – I was contingent on 2 short sales. The first took about 6 months to be told I was out bid. The other, I’m still haven’t heard word and it’s almost 2 years later. Bought an REO instead and closed in 30 days.
Hi A-Fed –
Thank you for sharing your experience. I’m sorry you got the runaround too and I’m really happy that you found an REO! I feel like I’m chasing a unicorn. It’s really beautiful, but it probably doesn’t really exist. I will pursue other avenues.
I did close on an investment property earlier this year. It was a situation where it was a regular sale but the value was pulled down by the general market. When I placed my original bid, the owner kept trying to bid me up telling me she had received a higher offer. I held firm even when she said she was taking the other offer. Things fell apart with that and then the listing expired, so she came back to me asking if I wanted it at my original bid price. I said I’d take it for 10K less. She complained but ultimately took it.
That one also closed in 30 days.
“And, it appears, $1,000,000 downpayments too.”
I doubt the buyer of this 4 million dollar house is putting 1 million down – these types of buyers are usually cash buyers. (My God, 1 great deal for a trader could bring them 1 million alone!!).
“Lastly, I am not sure your comparison for Chicago is correct per Gary’s comment and the data I looked at.” – JMM
What Gary commented on would lead to under-reporting of older data. If it is applicable to my data, that would make the case even stronger against your “data” as evidence for increased contract numbers in Chicago.
Please provide your data that shows Chicago’s September to October contracts increased 10%. The only “data” you presented so far was the NAR’s “10% increase” in national numbers.
My bet is that the Bloomberg mention of the NAR press release was the extent of your “data.” You are notorious here for attempting to pass off BS as fact.
“I kinda love the Kenilworth house… Thankfully I do not have 4Mil to spend on such an awful idea.”
It is a great house, albeit on a busy street (main artery between Sheridan and Green Bay). I believe its a short hold possible due to a relo. $4M is a huge price for anything but the lakefront, so it was interestng to see a short hold and a relatively quick sale.
“If it is applicable to my data”
It isn’t. That’s the point.
“You are notorious here for attempting to pass off BS as fact.”
And you, fact as BS.
“I doubt the buyer of this 4 million dollar house is putting 1 million down – these types of buyers are usually cash buyers. (My God, 1 great deal for a trader could bring them 1 million alone!!).”
I understand that point, but its not really true in this area. Most newly acquired properties above $2M seem to have mortagges. New buyers tend to be families with children that are school age (40 something) but with high incomes (such as CXO of a Fortune 5, partner at a law firm, etc). Or, if they are business owners, their wealth is not readily liquid.
As an example, the subject property has a $1.5M mortage on a circa $4M purchase price.
“a Fortune 5”
The two 0s were too hard to type?
The property was also purchased by the former ceo of the board of trade.
“The two 0s were too hard to type?”
Yes. Just like CXO saved me from writing CEO, CFO, COO, CIO, CTO and Chief Yahoo.
JMM is so good at slinging out the “impressive” terminology. Too bad he usually has no idea what he’s talking about.
If you check out the back pages of the “News Star” neighborhood freebie papers you’ll see a LOT of foreclosure notices and sheriff’s sales in the Albany Park/Irving Park areas. Six years ago it seemed like every other courtyard building between Western/ Pulaski/Irving/Foster was “going condo.” Not surprisingly, the chickens are roosting now.
At least this one has parking included – most did not. And it’s not too bad of a walk to the Kedzie L station. So it had a better chance of selling than many of its neighbors.
Those courtyard conversions are cheap nowadays. A tenant in my building bought a two bed north of irving for 80k.
“The two 0s were too hard to type?”
“Yes. Just like CXO saved me from writing CEO, CFO, COO, CIO, CTO and Chief Yahoo.”
Provides for extra time to criticize people for not using abbreviations in his preferred way (MTM BTW is, and shall always be, Mary Tyler Moore).
“JMM is so good at slinging out the “impressive” terminology. Too bad he usually has no idea what he’s talking about.”
Thanks for the unwarranted ad hominem attack. Value added. Still upset don’t understand the concept of economic depreciation?
“Provides for extra time to criticize people for not using abbreviations in his preferred way (MTM BTW is, and shall always be, Mary Tyler Moore).”
http://www.acronymfinder.com/MTM.html
For what it is worth, Month to Month gets all of one star. Right up there with Move the Money. And Mary Tyler Moore.