What Will You Pay For a 3-Bedroom Lakeview SFH? 1738 W. Newport

This 3-bedroom single family home at 1738 W. Newport in Lakeview came on the market in early February 2014.

If it looks familiar, it’s because we chattered about it the last time it was on the market which was less than 2 years ago, in June 2012.

See our previous chatter on it here.

The new listing says it has had “extensive 2013 renovations” which included a new kitchen, hardwood floors, electric, closets, and carpet.

The kitchen now has dark cabinets, stainless steel appliances and stone counter tops with a tile backsplash.

The house has 2 bedrooms and a bath on the second level. The third bedroom is on the first level and the listing says it is being used as a den.

The basement is accessible only from the outside.

Built on an irregular Chicago lot measuring 30×115, the house is set back from the street so it has a large front yard but it does have a 1-car garage.

The house has central air.

It last sold in September 2012 for $447,500.

The house came back on the market last month at $595,000 but has been reduced several times and is now listed at $565,000.

With limited inventory, especially for single family homes in this price range, will this house sell for over $500,000?

Wayne Gurowsky at Prudential Rubloff has the listing. See the pictures here.

1738 W. Newport: 3 bedrooms, 2 baths, no square footage listed, 1 car garage
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  • Sold in November 1989 for $170,000
  • Sold in September 1990 for $176,500
  • Originally listed in April 2012 for $529,900
  • Reduced
  • Was listed in June 2012 for $519,900
  • Sold in September 2012 for $447,500
  • Originally listed in February 2014 for $595,000
  • Reduced
  • Currently listed at $565,000
  • Taxes are $9093 (They were $7631 in 2012)
  • Central Air
  • Bedroom #1: 14×13 (second floor)
  • Bedroom #2: 10×12 (second floor)
  • Bedroom #3: 9×11 (main floor)- used as a den

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Market Conditions: Weather Is Blamed For January’s Weak Home Sales

We already knew January was weak but the official Illinois Association of Realtors numbers are out today.

January sales fell 9.1% year over year but last year was the highest in 6 years.

“The city of Chicago saw a 9.1 percent year-over-year home sales decline in January 2014 with 1,383 sales, down from 1,521 in January 2013. The median price also rose to $200,750 versus $157,000 in January 2013, an impressive 27.9 percent annual increase.”

Sales data since 2006 (thanks to G):
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  • January 2006: 2009 sales and median price of $258,000
  • January 2007: 1850 sales and median price of $279,900
  • January 2008: 1203 sales and median price of $290,000
  • January 2009: 918 sales and median price of $205,000
  • January 2010: 1237 sales and median price of $195,000
  • January 2011: 1034 sales and median price of $150,000
  • January 2012: 1093 sales and median price of $149,000 (not sure why IAR has 1123 sales for last year)
  • January 2013: 1521 sales and median price of $157,000
  • January 2014: 1383 sales and median price of $200,750

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“January’s activity is fairly typical for this time of year,” said Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. “A brutal winter doesn’t typically encourage home shopping fever in Chicago, and with inventory down  25 percent, the homes that did sell produced well above the median price by almost 28 percent to just over $200,000.”

“Investor opportunities and first-time homebuyers are still finding deals in a market that we might not see again for years to come,” Farrell added.

“Severe winter weather and seasonal trends definitely affected sales in January,” said Phil Chiles, ABR, CRS, GRI, SRES, president of the Illinois Association of REALTORS® and Broker-Associate with The Real Estate Group in Springfield. “Despite diminished traffic from buyers, prices remained robust and indications are that they will continue to show strength as we enter the spring selling season.”

A couple of things are interesting about this report:

1. The jump in the median price is a red herring. All it means is that the middle class buyer has taken himself out of the game. The rich are still purchasing those $1.5 million new construction homes in Southport so it’s pushing up the median.

2. How can it be the weather? If you closed in January, you went under contract in November or December. While December’s weather wasn’t great, it wasn’t awful either. There were no polar vortices in December.

Mortgage applications continue to be way below seasonal norms. Historically, March sees the largest spike in mortgage applications for the year. The next 5 weeks will tell us how the spring home buying season will be.

Inventory continues to be low. Will that change when spring finally gets here?

Severe winter weather cools January home sales but median prices continue year-over-year march upward [Illinois Association of Realtors, Press Release, February 21, 2014]

 

You Can Buy a 3-Bedroom SFH in Lincoln Park for Just $750,000: 2652 N. Seminary

This 3-bedroom single family house at 2652 N. Seminary in Lincoln Park just came on the market.

Built in 1891, it is a Victorian on the outside but a contemporary home on the inside.

It is also on an extra long 24×131 lot with a 2 1/2 car garage.

The master suite takes up the third floor with the two other bedrooms on the second floor.

It has skylights and central air.

It is currently listed for $750,000, which is the price for many townhouses and duplex downs in the same neighborhood.

In case you’re wondering, it is NOT on the El line.

Is this a deal?

Or is it priced to bring about a bidding war?

(This listing just came on the market 4 days ago. I wouldn’t be surprised to see it “pending” today so don’t write me saying, “Sabrina, it’s already pending. Yeah- things that are priced right are pending within days given the low inventory.)

Steven Sims at Coldwell Banker has the listing. See the pictures here.

2652 N. Seminary: 3 bedrooms, 2.5 baths, no square footage listed, 2.5 car garage
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  • Sold in May 2000 for $540,000
  • Sold in January 2003 for $710,000
  • Currently listed for $750,000
  • Taxes of $8374
  • Central Air
  • Bedroom #1: 15×12 (third floor)
  • Bedroom #2: 13×12 (second floor)
  • Bedroom #3: 12×11 (second floor)

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Market Conditions: December Home Sales Rise 12.5% in Chicago YOY

It’s that time of the month again. December was another solid sales month for Chicago.

From the Illinois Association of Realtors:

The city of Chicago saw a 12.5 percent year-over-year home sales increase in December 2013 with 2,080 sales, up from 1,849 in December 2012. The year-end 2013 home sales totaled 27,155, up 21.2 percent from 22,397 home sales in 2012. 

The median price of a home in the city of Chicago in December 2013 was $210,000 up 13.5 percent compared to December 2012 when it was $185,000. The year-end 2013 median price reached $220,000, up 18.9 percent from $185,000 in 2012.

Here is the data going back 9 years:
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  • December 2004: 3,719 sales and median price of $267,000
  • December 2005: 2,847 sales and median price of $283,000
  • December 2006: 2,241 sales and median price of $279,000
  • December 2007: 1,629 sales and median price of $287,000
  • December 2008: 1,263 sales and median price of $235,000
  • December 2009: 1,820 sales and median price of $208,000 (34% short/REO sales)
  • December 2010: 1,475 sales and median price of $166,000 (43% short/REO sales)
  • December 2011: 1,536 sales and median price of $156,000 (44% short/REO sales)
  • December 2012: 1806 sales and median price of $185,000 (39.7% short/REO sales- according to Gary Lucido’s data)
  • December 2012: 2080 sales and median price of $210,000

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“A surplus of pent-up buyers helped move the market in 2013,” said Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. “Motivated sellers, paired with attractive interest rates and a sense of a more stable economic climate, helped close deals that might have otherwise not come to the table. The return of the jumbo loan allowed for move-up buyers to buy their next home as a delayed recovery can be in part attributed to the $417,000 federally-backed loan limit and no other jumbo loan options,” Farrell added.

 “This year will likely bring stabilization in housing prices.  Keys to keeping Chicago affordable and attainable to even the most credit-prepared buyers includes the necessity for our industry to continue to push for increased federally-backed loan limits, so that those trying to purchase in our city can do so without being priced out of their next home,” noted Farrell.

Is the continuation of the housing recovery really predicated on pushing for “increased federally-backed loan limits”?

Does anyone think the $417,000 level is going to come back?

Is a 10% or 20% down payment really that much of an impediment?

Illinois home sales climb again in December; 2013 marks a strong year of housing recovery [Illinois Association of Realtors, Press Release, January 23, 2014]

Will These Lincoln Park Condos Make Way for Luxury Apartments? 2518 N. Lincoln

We’ve chattered about this building at 2518-2540 N. Lincoln in Lincoln Park before.

Many of you who have traveled on the Red, Brown or Purple line also would recognize the back of the building- because it’s the building with the infamous roof top tennis courts (that I’ve never seen anyone EVER playing tennis on.)

Crain’s is reporting that a developer wants to buy out the condo owners, tear down the building, and build a luxury apartment building in its place.

From Crain’s:

Mr. Baker, president of Chicago-based Baker Development Corp., said he has signed contracts to buy all the condos in Lincoln Centre, 2518-2540 N. Lincoln Ave., but declined to say how much he’s paying for them. A Baker venture already owns the retail space in the building, best known for an on-site tennis court that abuts the Chicago Transit Authority’s Red Line.

After razing the building, Mr. Baker said he would build 225 luxury apartments, 16,000 square feet of retail space and a 200-slot garage. The development, which would rise to 12 stories at its tallest, would cost around $80 million.

Mr. Baker said the property is unsightly and needs to come down, pushing owners to agree to move on.

“People are ready to sell,” he said.

He said the development could revitalize Lincoln Avenue, parts of which have struggled to draw in retail tenants that are choosing the Clybourn Corridor for new stores.

The project is “going to be a game-changer for turning around a street that has been in decline for so long,” Mr. Baker said. Fifty of the parking slots in the garage will be dedicated for public use, which should help draw in new retail tenants, he added.

Mr. Baker introduced the project to Lincoln Park residents Jan. 13, laying out his plans to the Wrightwood Neighbors Association.

According to Crain’s, Alderman Smith had no details about the proposal and declined to comment.

This is the second possible large scale condo building in Lincoln Park that is looking to go back to apartments (or sell out to an investor who will build apartments) we’ve chattered about in the last 6 months.

If the developer does have all the owners on board, does this project have any chance of getting off the ground?

Also, is anyone else surprised that all these condo owners are so eager to sell?

Here’s a picture of the back side of the building, taken from the other side of the El tracks.

2518 n lincoln back side

Developer plans 225-unit apartment building in Lincoln Park [Crain’s Chicago Business, Micah Maidenberg, January 13, 2014]

Will the Reduction in FHA Loan Limits Impact Condo Sales? 645 N. Kingsbury in River North

This 2-bedroom in Admirals Pointe at 645 N. Kingsbury in River North came on the market at the end of November 2013.

It was bank owned in 2013 and has been renovated.

The unit, with south, west and city views, has new dark hardwood floors and ceiling fans.

It also has a new kitchen with dark cabinetry, granite counter tops, stainless steel appliances and a glass tile backsplash.

There is only one picture of a bathroom and it appears to be the original bath.

Other 2013 listings in the building touted Admiral’s Pointe as being “FHA approved.”

In 2013, the FHA loan limit was $417,000 which most of the 2/2s, which were selling in the $300,000s, in the building would have qualified for.

But in 2014, the FHA loan limit has fallen to $365,700 in Chicago.

This unit is listed at $439,900, which was still above the old loan limit, but not by much. (There’s always room for negotiation.)

But in 2014, it is WELL above the FHA loan limit.

Unless it is significantly reduced, it’s not falling under the limit.

Will the reduction in the loan limits hit sales of these $400,000 2/2s hard in FHA approved buildings?

Thomas Besore at Streeterville Properties has the listing. See the pictures here.

Unit #1902: 2 bedrooms, 2 baths, 1225 square feet
[unordered_list style=”bullet”]

  • Sold in March 2002 for $362,500
  • Sold in March 2006 for $390,000
  • Sold in August 2010 for $295,000
  • Lis pendens foreclosure filed in March 2012
  • Bank owned
  • Sold in June 2013 for $265,000
  • Originally listed in November 2013 for $439,900
  • Currently still listed for $439,900
  • Assessments of $716 a month (includes a/c, gas, cable, doorman)
  • Taxes of $5183
  • Central Air
  • Washer/Dryer in the unit
  • No parking included
  • Bedroom #1: 13×12
  • Bedroom #2: 13×12

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Will Luxury Condo Rentals Be the Deal of 2014? 550 N. St. Clair in Streeterville

There are thousands of new luxury apartments being built in downtown Chicago, some of which will come on the market later this year.

They have all the luxury features of many condos, including stone counter tops, new kitchen cabinets, stainless steel appliances, and hardwood floors in the main living areas.

This 1 bedroom plus den in The St. Clair at 550 N. St. Clair in Streeterville just came on the rental market.

At 1125 square feet, the listing says the den can be used as second bedroom.

This unit has upscale kitchen appliances and cabinetry and marble bathrooms.

It has a terrace that overlooks Michigan Avenue, floor to ceiling windows, and an in-unit Bosch washer/dryer.

This is currently listed at $2400 plus $200 a month for parking.

Given that many of the luxury 1-bedroom apartments, which are only 700 to 750 square feet, rent for this (and more)- isn’t this a deal?

Are luxury condo rentals going to have to lower their prices to compete with the apartment rental inventory that is coming on line in 2014?

Will some luxury condo owners actually have to upgrade their units (new appliances, counter tops, bathrooms) in order to compete in the rental market?

Jeff Leong at @Properties has the listing. See the pictures here.

Unit #1005: 1 bedroom, den, 1125 square feet
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  • Rented for $2600 a month in 2013
  • Currently listed for $2400 plus $200 a month for parking
  • Deposit: $2400
  • Rent includes cable, gas, heat, a/c, pool
  • Central Air
  • Washer/Dryer in the unit
  • Bedroom: 14×12
  • Den: 14×10

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Bought a Downtown Condo in 2009? Appreciation Depends on the Building: 130 N. Garland in the Loop

This 4-bedroom unit in the Heritage at 130 N. Garland in the Loop has been on the market since April 2013.

It has direct views of Millennium Park and the Lake from every room in the unit.

The 3100 square feet unit also has a much sought after 3-bedrooms and 2-parking spots included.

The kitchen has granite counter tops, maple cabinets and stainless and black appliances.

It has crown molding and hardwood floors throughout the main living space.

The Heritage is a full service building and has one of the most amazing indoor pools in the city.

Originally listed at $2.5 million, it has been reduced to $2.2 million.

That’s just $90,000 over the 2009 purchase price.

Unlike in the housing boom years, isn’t appreciation really a building specific (and even a unit-specific) thing?

Laura Arnett at Baird & Warner has the listing. See the pictures here.

Unit #5303: 4 bedrooms, 3 baths, 3100 square feet
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  • Sold in November 2005 for $2,079,500
  • Sold in June 2009 for $2,110,000
  • Originally listed in April 2013 for $2,500,000
  • Reduced several times
  • Currently listed at $2,200,000 (includes 2 parking spaces)
  • Assessments of $2146 a month (includes doorman, cable, pool)
  • Taxes of $20,768
  • Central Air
  • Washer/Dryer in the unit
  • Bedroom #1: 16×16
  • Bedroom #2: 12×16
  • Bedroom #3: 16×12
  • Bedroom #4: 14×13

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You’ll Pay 37.6% More for this Streeterville 2-Bedroom Than 3-Years Ago: 600 N. Fairbanks

This 2-bedroom in Helmut Jahn’s 600 N. Fairbanks in Streeterville just came on the market.

Long time readers might recognize it because we chattered about it in 2009 and wondered if the buyer in 2009 would make any money 5+ years down the line. (The comments are very interesting with the benefit of hindsight.)

See our prior chatter, with interior pictures, here.

This would be the third sale of this unit since its original sale from the developer in 2007.

The interiors are the same as they were from the 2009 sale.

It has dark hardwood floors throughout with 10 foot floor to ceiling windows.

It has concrete ceilings and a long concrete wall in the kitchen and living room.

All kitchens in the building have Snaidero cabinets, Subzero, Wolf and Miele appliances. It was the standard package at the time of the original sale. This unit has a full limestone backsplash, however, which was an upgrade.

This unit faces north and west.

The prior two sellers both lost money on the unit.

However, the market has changed since the last sale in 2011. It is now, hot, hot, hot.

The current owner is looking for 37.6% appreciation over the last 3 years. This price is also well over the bubble pricing as this building was pre-sold in 2005-2006 with closings in 2007 just before the bust.

Will this seller get it?

Is this the new norm in Streeterville?

Elizabeth Sidorowicz at Re/Max Signature has the listing. See the pictures here.

Unit #1505: 2 bedrooms, 2 baths, 1253 square feet
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  • Sold in November 2007 for $584,000 (included the parking)
  • Sold in July 2009 for $585,000 (included the parking)
  • Sold in April 2011 for $545,000 (included the parking)
  • Currently listed for $749,900 (includes the parking)
  • Assessments now $591 a month (they were $482 a month in January 2009)- including A/C, gas, doorman, pool, and cable
  • Taxes of $7425
  • Central Air
  • Washer/dryer in the unit
  • Bedroom #1: 18×12
  • Bedroom #2: 12×11

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Biggest Story of 2014: Will Chicago Home Prices Continue to Rise?

According to Case Shiller, Chicago October home prices rose 10.9% year over year, the fastest increase in 25 years.

However, compared with September, Chicago prices actually declined slightly.

From the Chicago Tribune:

“The S&P/Case-Shiller home price index also showed though, that compared with September, home prices in October fell 0.5 percent, following a month-over-month gain of 0.3 percent from August to September. The monthly decline ended a seven-month run in which local home prices rose compared to the previous month.

Home prices in the Chicago area were on par in October with their February 2003 level before the housing crash and post-crash, in December 2009.

The news was also good for Chicago-area condominium prices, which rose 14.2 percent year-over-year in October but were flat compared with September. Area condo values were akin to their levels in late 2002 as well as in August 2010.”

But mortgage rates are now significantly higher than they were this time a year ago.

Will home prices continue to rise in 2014?

Or will it be a bifurcated market with the upper bracket still seeing increases, due to low inventory, but middle and lower middle class housing prices stalling out as consumers simply can’t absorb the higher rates?

Will more homeowners decide to try and cash in- easing the inventory crunch?

Chicago home prices jump by biggest margin since 1988 [Chicago Tribune, Mary Ellen Podmolik, December 31, 2013]