A Lincoln Park 2-Bedroom in a Boutique Building with Parking for $725K: 1122 W. Armitage
This 2-bedroom at 1122 W. Armitage in Lincoln Park came on the market in July 2024.
If this building looks familiar, that’s because we’ve chattered about it before. It was built in 1994 and has 8 units and attached garage parking.
We actually chattered about this same unit in 2016. Back then, it was listed at $585,000 and ended up selling over ask at $596,000.
See our chatter here.
The building has a “new” elevator and a “newly renovated” lobby. The only common amenity appears to be a rooftop deck with skyline views.
The listing says this unit has been “updated to perfection.”
It has custom built-ins in the living room, newer crown molding/baseboards, a custom bar in the living room with white cabinets and a beverage refrigerator.
There’s a wood burning fireplace in the living room and a window seat.
The kitchen is open concept to the dining and living rooms and has white cabinets, a peninsula with seating for 4, carrera counter tops and stainless steel appliances.
The primary suite has an en suite bath which the listing says was a “complete gut.” It is “spa-like” with a double vanity and a massive tri-head shower.
It has custom window treatments throughout.
The unit has the features that buyers look for including central air, washer/dryer in the unit and one car garage parking.
It also has two outdoor spaces including a small shared balcony off the front of the unit accessible off the living room and a bigger private deck off the back of the unit accessible through the master bedroom.
This building is located just 3 blocks to the Brown line station at Armitage and is also on the Armitage bus line. It’s surrounded by the shops and restaurants on Armitage as well as those in the Clybourn Corridor.
Listed at $725,000 for 1500 square feet, has the price of a Lincoln Park 2/2 reached new highs?
Lindsey Richardson at Dream Town has the listing. See the pictures and floor plan here.
Unit #202: 2 bedrooms, 2 baths, 1500 square feet
- Sold in December 1994 for $371,250
- Sold in April 1999 for $345,000
- Sold in December 2002 for $479,000
- Sold in August 2007 for $507,500
- Sold in October 2016 for $596,000
- Sold in September 2019 for $620,000
- Currently listed at $725,000
- Assessments of $433 a month (includes exterior maintenance, lawn care, scavenger, snow removal)
- Taxes of $12,348
- Central Air
- Washer/dryer in the unit
- Wood burning fireplace
- Garage parking space included
- Bedroom #1: 22×17
- Bedroom #2: 12×10
- Living room: 19×19
- Dining room: 12×12
- Kitchen: 14×9
- Foyer: 8×5
- Balcony: 10×4 (front)
- Deck: 16×15 (back)
So now sellers get to claim a 5YO update done by the previous owner is theirs?
Elevator and outdoor area is nice.
The ask is peak pricing, Im guessing that when people look at their portfolios this morning its going to be a little shock to their plans
Same appliances, too, now ~20 years old.
Other than that, it’s fine. Hard to believe that it’s $700k tho.
I’m not thrilled with having to walk through the master bedroom to get to the back deck. But this is the “old” layout that builders don’t deploy as much anymore.
If a 2/2 condo is worth over $700,000 now, what is a 2/2 townhouse worth? A million?
Also, mortgage rates have dropped so dramatically in the last few weeks that buyers are now “saving” $240 a month on a payment on a $400k mortgage (with a 30-year fixed.)
“If a 2/2 condo is worth over $700,000 now, what is a 2/2 townhouse worth? A million?”
Ask does not equal sales price
“Also, mortgage rates have dropped so dramatically in the last few weeks that buyers are now “saving” $240 a month on a payment on a $400k mortgage (with a 30-year fixed.)”
Thats like a point drop in rates
Link?
Contingent
Already? Lol.
“Thats like a point drop in rates
Link?”
Yep. 30-year fixed has gone from 7.25% to 6.3%.
“Yep. 30-year fixed has gone from 7.25% to 6.3%.”
Both those numbers seem off, I dont suppose you have a link?
https://www.investopedia.com/mortgage-rates-plummet-to-lowest-level-in-16-months-aug-6-2024-8690824
Im guessing that when people look at their portfolios this morning its going to be a little shock to their plans
??
https://www.forbes.com/advisor/mortgages/mortgage-rates/
Showing 6.89
Using your data set, let me know where you see 7.25% or were you get a 1 point drop “in the last few weeks”
TIA
“Im guessing that when people look at their portfolios this morning its going to be a little shock to their plans”
Your portfolio didnt get bludgeoned Monday? Mind sharing your stock tips?
Bludgeoned? My investments went down a little over 1% yesterday (and gained back some of that today). Certainly not enough of a change to impact a house/condo search.
Stock tips – hire an independent advisor and let them balance your portfolio. Tell them you are comfortable with “moderate risk”.
“Stock tips – hire an independent advisor and let them balance your portfolio. Tell them you are comfortable with “moderate risk”.”
Great advice Madeline. Many of us didn’t see much of a decline at all on Monday. Have a diverse portfolio of investments.
“Using your data set, let me know where you see 7.25% or were you get a 1 point drop “in the last few weeks””
It’s all anyone is talking about JohnnyU. The “refi” questions are coming fast and furious already. Probably doesn’t make much sense yet and most people will “wait” for it to go down further (or hope it does).
Again, a payment on a $400k loan has already dropped $240 a month. It’s a HUGE savings when it goes the other way.
“Bludgeoned? My investments went down a little over 1% yesterday (and gained back some of that today). Certainly not enough of a change to impact a house/condo search.
Stock tips – hire an independent advisor and let them balance your portfolio. Tell them you are comfortable with “moderate risk”.”
Most people waking up to a 3% loss is shocking.
With the Nasdaq down 3.4%, S&P 500 down 3% and DJIA 2.6% your advisor is either a genius or you had a major cash position.
That’s not moderate risk
“ It’s all anyone is talking about JohnnyU. The “refi” questions are coming fast and furious already. Probably doesn’t make much sense yet and most people will “wait” for it to go down further (or hope it does).
Again, a payment on a $400k loan has already dropped $240 a month. It’s a HUGE savings when it goes the other way.}
So no link to the numbers you cite?
Not disagreeing that rates have dropped, I just can’t find any validity to the change you posted
“Great advice Madeline. Many of us didn’t see much of a decline at all on Monday. Have a diverse portfolio of investments”
LOL
Please provide a breakdown by class that allowed “not much of a decline” Monday. I mean in your advanced age, a 90% cash position might be prudent, but that’s not the norm for the non geriatric sect
“Please provide a breakdown by class that allowed “not much of a decline” Monday.”
I only own stocks. No cash.
My portfolio was down 1.8% on Monday. (The horror!) But I own quite a few defensive plays.
Here’s the link from CNBC Johnny U:
https://youtu.be/DgNqAJf_SYo?si=tLmEvMxdiBMQM-TV
All the numbers. Mortgage rates dropped to 6.34% on Monday. Payment dropped $240 a month (as she says in the video.)
“With the Nasdaq down 3.4%, S&P 500 down 3% and DJIA 2.6% your advisor is either a genius or you had a major cash position.”
Nah. All you had to be in were the defensive plays. Drug stocks, energy. Neither was down as much as the major averages. Dividend payers too. Homebuilders.
Lots of different industries didn’t drop much.
“https://youtu.be/DgNqAJf_SYo?si=tLmEvMxdiBMQM-TV
All the numbers. Mortgage rates dropped to 6.34% on Monday. Payment dropped $240 a month (as she says in the video.”
LOL, the 7.25 was in APRIL. The image show APRIL. Now most non Sabrina’s would not view APRIL as ““in the last few weeks””.
Grow up
“Nah. All you had to be in were the defensive plays. Drug stocks, energy. Neither was down as much as the major averages. Dividend payers too. Homebuilders.
Lots of different industries didn’t drop much.”
Energy sector was down about 2%
I guess 1ts like a “few weeks”
“Energy sector was down about 2%”
Oh no. 2%. The world is ENDING!!!!!
I won’t be able to buy a house because my portfolio is down…2%!!!
(By the way, home buyers should NOT have their money that will be used for purchasing a property in the stock or bond market.)
“LOL, the 7.25 was in APRIL. The image show APRIL. Now most non Sabrina’s would not view APRIL as ““in the last few weeks””.”
Yep. Buyers monthly payment has dropped about $240 a month because of the rate drop last week. It’s gone up a bit again though, so you would have had to move fast and lock in the low rate.
But that is a big difference and is really going to help buyers. Fed will be cutting next month so rates should go back down to 6.34%. If they go down around 6%, it will be a big stimulus.
“Oh no. 2%. The world is ENDING!!!!!
I won’t be able to buy a house because my portfolio is down…2%!!!
(By the way, home buyers should NOT have their money that will be used for purchasing a property in the stock or bond market.)”
Could you be a bit more dishonest?
“Yep. Buyers monthly payment has dropped about $240 a month because of the rate drop last week. It’s gone up a bit again though, so you would have had to move fast and lock in the low rate.
But that is a big difference and is really going to help buyers. Fed will be cutting next month so rates should go back down to 6.34%. If they go down around 6%, it will be a big stimulus.”
So now APRIL is only a few weeks ago?
“So now APRIL is only a few weeks ago?”
Huh?
Rates dropped LAST WEEK. Hopefully people locked in those lower mortgage rates. Also, many who have over 7% will try and refi soon but probably not until the rates are closer to 6%.
It’s going to free up a TON of money. All of that will act as a stimulus back into the economy.
“Huh?”
Really?
“mortgage rates have dropped so dramatically in the last few weeks”
“Few” generally means something less than 10, but the comparison date used in the linked video was APRIL–at least 12 weeks ago.
“ Rates dropped LAST WEEK. Hopefully people locked in those lower mortgage rates. Also, many who have over 7% will try and refi soon but probably not until the rates are closer to 6%.
It’s going to free up a TON of money. All of that will act as a stimulus back into the economy.”
This is 100% not what you claimed
Embarrassing
Are you like this in real life?
from CNBC
Mortgage refinancing applications jumped 35% last week compared with the previous week, as homeowners looked to capitalize on interest rates reaching their lowest levels in more than a year. As we await a Fed rate cut as soon as next month, this spike in refinancing goes to show how beneficial lower rates will be for consumers. Meanwhile, mortgage applications to buy a house ticked up 3% week over week, but still were down 8% compared with the same period last year.
“Mortgage refinancing applications jumped 35% last week compared with the previous week”
Yes, defintely on the upswing, and defintely because available rates crossed below 6.5 for the first time in nearly 18 months.
But it’s not a point drop from “a few weeks ago”. Mixed metaphor.
“ Mortgage refinancing applications jumped 35% last week compared with the previous week, as homeowners looked to capitalize on interest rates reaching their lowest levels in more than a year. As we await a Fed rate cut as soon as next month, this spike in refinancing goes to show how beneficial lower rates will be for consumers. Meanwhile, mortgage applications to buy a house ticked up 3% week over week, but still were down 8% compared with the same period last year”
Cool story
https://www.youtube.com/watch?v=CMNry4PE93Y&themeRefresh=1
It’s a bit misleading that everyone is talking about refis jumping 35% last week though. As they were at multi-year lows and have been for the last 2 years. But glad to see some people jumped at the chance to refi. I knew some would try and get on top of that.
Just wait until the rates go back to 6% and if they stay there for more than a day.
Mortgage rates down to 6.6% again today. This is going to save homebuyers a lot of money. What was painful on the way up will feel like a big coup on the way down.
Too bad there aren’t any properties on the market to buy in Chicago at the moment. Inventory SHOULD be on the rise into the fall, in a normal year. But this market isn’t normal.
“Mortgage rates down to 6.6% again today. This is going to save homebuyers a lot of money. What was painful on the way up will feel like a big coup on the way down.
Too bad there aren’t any properties on the market to buy in Chicago at the moment. Inventory SHOULD be on the rise into the fall, in a normal year. But this market isn’t normal.”
While 6.6 is better than its been recently, why would you expect the majority of owners with rates in the 3’s to sell? From a HMAM its a losing proposition. The only thing that will out there are units with high churn
“While 6.6 is better than its been recently, why would you expect the majority of owners with rates in the 3’s to sell?”
Chicago hasn’t been building enough for sale properties. Vast majority of building has been in apartments. We’ve seen two apartment to condo conversions already. That will likely pick up in the next few years, especially in neighborhoods like Fulton Market where there has been NO condo building.
Will we see new record low inventories in some neighborhoods this winter? It’s incredible, to me, that there are just 190 properties on the market in all of Lincoln Park and that includes numerous over $5 million so they don’t really count (ha ha).
” It’s incredible, to me, that there are just 190 properties on the market in all of Lincoln Park and that includes numerous over $5 million so they don’t really count (ha ha)”
Why?
Other than those relocating for buisness, retiring or that received a substantial raise no one wants to go from 3 to 6+%. P&I from a 500K @ 3% to a $700k @ 6% is about 2X. And is that new property going to be materially better?
Not sure how/why this is so difficult for you to grasp.
“Why?”
I don’t think you can grasp how little 190 properties are in a neighborhood as dense and large as Lincoln Park. It goes all the way to the Chicago River.
Other cities don’t have this low inventory problem. In fact, most don’t. Austin, Houston, Dallas, Atlanta, Tampa, all have soaring inventory. Don’t they have 3% mortgages too? Why are THEY all listing??? Why are THEY willing to give it up for that new property?
Your “theory” would only make sense if it was actually happening nationwide. It’s not.
“I don’t think you can grasp how little 190 properties are in a neighborhood as dense and large as Lincoln Park. It goes all the way to the Chicago River.
Other cities don’t have this low inventory problem. In fact, most don’t. Austin, Houston, Dallas, Atlanta, Tampa, all have soaring inventory. Don’t they have 3% mortgages too? Why are THEY all listing??? Why are THEY willing to give it up for that new property?
Your “theory” would only make sense if it was actually happening nationwide. It’s not.”
What happened to real estate is local?
Comparing the market dynamics of Tampa to Chicago isnt very smart
“Austin, Houston, Dallas, Atlanta, Tampa, all have soaring inventory.”
Last I checked, all of those metros have outpaced chicago price growth over the past 10 years by at least 2x, if not 5x.
Very different to sell a property you paid $1m for at $2m, versus $1.2m.
“Last I checked, all of those metros have outpaced chicago price growth over the past 10 years by at least 2x, if not 5x.
Very different to sell a property you paid $1m for at $2m, versus $1.2m.”
Oh. So 20% price gains isn’t enough for you to give up your 3% rate if you have a life change but 40% or 50% is?
Come on. That’s so silly.
By the way, housing prices are sticky on the way down, as we know. The price declines won’t come for another year in the hot southern markets. They won’t want to “give it away.” And, so far, they have jobs and don’t HAVE to sell. Many properties sitting, especially in Texas. Market times rising. Eventually, inventory will be so high there will HAVE to be price cuts from some and that will push prices down further.
“What happened to real estate is local?
Comparing the market dynamics of Tampa to Chicago isnt very smart”
All real estate IS local but you’re arguing that the national mortgage rates of 6.6% are what are preventing people from listing their homes for sale and moving when every market in the country has those very conditions. As a result, that is NOT a local, market condition so Chicago should not be any different than Tampa or Nashville.
If you don’t want to compare Chicago to Tampa, pick your poison. Inventory rising in Boise and Austin too. How about those?
Let’s ask Gary.
Gary: How is inventory in Raleigh looking? Is it on the rise or not? Are people selling because home prices have doubled so they have no trouble giving up their 3% rates?
“All real estate IS local but you’re arguing that the national mortgage rates of 6.6% are what are preventing people from listing their homes for sale and moving when every market in the country has those very conditions. As a result, that is NOT a local, market condition so Chicago should not be any different than Tampa or Nashville.
If you don’t want to compare Chicago to Tampa, pick your poison. Inventory rising in Boise and Austin too. How about those?”
Except I wasnt (Except in your warped mind). YOU where whining about the lack of inventory in LP. I proffered that you wouldnt see an uptick in listings until rates came down because its a complete nutpuch to try and upgrade when you have a 3% rate. YOU blather on about a different topic that has nothing to do with the discussion at hand as some sort of counter
Its kinda like April was only a few weeks ago
You really need to seek professional help about the anger you have towards me. Its not normal and frankly probably a sign of greater mental instabilities or possibly a substance abuse issue
Ill also add the substitution effects for someone that wants to live in LP Vs someone that is moving from subdivision to subdivision are completely different
JU
SABS says: “Also, mortgage rates have dropped so dramatically in the last few weeks that buyers are now “saving” $240 a month on a payment on a $400k mortgage (with a 30-year fixed.)”
Trump says: He’ll end the Ukraine Russia war in 24 hours
https://apnews.com/article/trump-russia-ukraine-war-un-election-a78ecb843af452b8dda1d52d137ca893
JU: SABS and Trump both speak in hyperbole outside a courtroom
WSJ
Stocks Rebound to Notch Best Week of 2024
A streak of encouraging economic reports buoys markets
U.S. stocks edged higher Friday, capping off their best week of the year in a head-spinning turnaround that defied recent concerns about rising recession risks.
Buoyed by a surprising streak of encouraging economic reports, the S&P 500 gained 3.9% this week. The Dow Jones Industrial Average climbed 2.9%, and the Nasdaq Composite advanced 5.3%. It was the biggest weekly gain for each major index since last November.
Friday’s trading session was quiet, but stocks were able to maintain their momentum from the previous few days.
paywall:
https://www.wsj.com/finance/stocks/global-stocks-markets-dow-news-08-16-2024-7cc53975
“JU: SABS and Trump both speak in hyperbole outside a courtroom”
Refis jumped 34% last week, albeit from extremely low levels. Imagine what it will be like when rates hit 6% again and stay there for a while?
Banks are really going to rake it in.
“Except I wasnt (Except in your warped mind). YOU where whining about the lack of inventory in LP. I proffered that you wouldnt see an uptick in listings until rates came down because its a complete nutpuch to try and upgrade when you have a 3% rate. YOU blather on about a different topic that has nothing to do with the discussion at hand as some sort of counter”
EVERYONE IN AMERICA is waiting for the rates to come down. Are you really this daft?
Why aren’t they waiting in Austin? Why are thousands of homes on the market there? Because they’re stupid in Texas? Ditto with rising inventory in Florida. They LIKE losing their 3% mortgages in Florida?
Inventory continues to drop in Lakeview. It could get so bad this fall that we may only see 100 properties on the market. It’s amazing that it’s even at 200. In a neighborhood that has thousands of residents and is one of the most dense neighborhoods in all of America.
This isn’t being talked about enough, especially where Chicago real estate is concerned. It’s a complete game changer for real estate here. And with little new construction, it appears it will take years to improve.
Of course, this is good news for owners, as prices will continue to rise. It’s bad news for buyers who will have to pay more.
“Because they’re stupid in Texas?”
Did you really just ask that?
“Why are thousands of homes on the market there?”
rapid building of new homes
“Why aren’t they waiting in Austin? Why are thousands of homes on the market there? Because they’re stupid in Texas? Ditto with rising inventory in Florida. They LIKE losing their 3% mortgages in Florida?
Inventory continues to drop in Lakeview. It could get so bad this fall that we may only see 100 properties on the market. It’s amazing that it’s even at 200. In a neighborhood that has thousands of residents and is one of the most dense neighborhoods in all of America.
This isn’t being talked about enough, especially where Chicago real estate is concerned. It’s a complete game changer for real estate here. And with little new construction, it appears it will take years to improve.
Of course, this is good news for owners, as prices will continue to rise. It’s bad news for buyers who will have to pay more.”
Based on your non-response, I’m going to assume that you agree with my analysis of LP and that you now understand that your comment was incorrect and ill formed.
As to the rest, where is it easier to build housing – LP/LV or Austin/Tampa? To put it in even simpler terms that you can hopefully understand, Tampa/Austin’s inventory is not dependent on owners selling whereas LP/LV are
Do you see?
“LP/LV or Austin [or] Tampa?”
Can put that in Sesame Street terms–one of these things is not like the other…
What’s inventory like in the most desireable “urban” neighborhood of Tampa and Austin??
“Oh. So 20% price gains isn’t enough for you to give up your 3% rate if you have a life change but 40% or 50% is?”
$200k in net gain is merely a down payment on a new house (that isn’t a manufactured home) somewhere else.
$1,000k in net gain is enough to pay cash for a new house somewhere else.
ALSO: with the far lower monthly, it’s much easier to rent the property and cashflow, even with hiring a professional manager. So there are more options.
“Can put that in Sesame Street terms–one of these things is not like the other…”
I didnt want to insult anyones intelligence
SABS says
“Refis jumped 34% last week, albeit from extremely low levels. Imagine what it will be like when rates hit 6% again and stay there for a while?
Banks are really going to rake it in.”
“Banks are really going to rake it in.”
“Banks are really going to rake it in.”
Frankly my dear, banks have been exiting the mortgage business for quite some time.
I think that non bank companies have over or around 75% of the mortgage market now like United Wholesale Mortgage
“Frankly my dear, banks have been exiting the mortgage business for quite some time.”
There are thousands of small, community banks who make a lot of their income off of mortgages, including refis. They are going to rake it in. It certainly can’t get any worse, though, so it’s only up from here.
“$1,000k in net gain is enough to pay cash for a new house somewhere else.”
Everyone in Austin is getting a million dollars more for their homes now? Come on. I expect more from you anon(tfo).
“What’s inventory like in the most desireable “urban” neighborhood of Tampa and Austin??”
No idea what that even means. None of those neighborhoods would even come close to the same density. But in Austin, there are 122 homes on the market in South Congress, which is one of the top trendy neighborhoods.
South Lamar has 256 homes.
East Austin has 798 homes.
By the way, Chicago’s inventory has been low city wide. I bring up Lakeview because it’s one of the densest neighborhoods in the country and it is at record lows. Incredible.
But it’s also at record lows in neighborhoods like Hyde Park and Woodlawn.
Redfin says citywide inventory is now at 7,087 for Chicago and 5,481 for Austin. Chicago seems high but it could be some homes are now sitting on the market longer as the fall market approaches.
“As to the rest, where is it easier to build housing – LP/LV or Austin/Tampa? To put it in even simpler terms that you can hopefully understand, Tampa/Austin’s inventory is not dependent on owners selling whereas LP/LV are”
Chicago is the only one of those 3 cities that is building 70 story residential towers so I don’t understand what you are even talking about JohnnyU. Chicago is building 19,000 apartments in Fulton Market over the next 4 years.
Austin couldn’t build fast enough during the pandemic but they now are oversupplied. This is good for renters because prices are coming down for rentals now.
“rapid building of new homes”
These are NOT new construction homes. These are homes that people have been living who, presumably, have a mortgage rate under 4%. WHY ARE THEY ALL SELLING????
“Chicago is the only one of those 3 cities that is building 70 story residential towers so I don’t understand what you are even talking about JohnnyU. Chicago is building 19,000 apartments in Fulton Market over the next 4 years”
1 – Apartments are not houses. As someone is wont to say “People just want to live”
2 – Other that the old Spire, what other 70+ story towers are under construction?
“Austin couldn’t build fast enough during the pandemic but they now are oversupplied. This is good for renters because prices are coming down for rentals now.”
You keep bringing up Austin in a misguided attempt to prove a point. Once again, you’ve failed to explain what does Austin has to do with LP/LV.
Do better
3 – Proposed projects are not real. Please link approved plans for 17000 apartment units
“I think that non bank companies have over or around 75% of the mortgage market now like United Wholesale Mortgage”
Do those guys actually hold their own loans in any significant amount, or are they overwhelmingly originators/servicers for GSE loans?
“These are NOT new construction homes.”
I’m not going to be bothered posting links for all the new construction homes on the market in Austin and Texas in general as well as the southern region of the country.
“No idea what that even means. ”
Did you actually say that? About this question?
“What’s inventory like in the most desireable “urban” neighborhood of Tampa and Austin?”
Let’s parse that:
“What is inventory like” = how many houses/condos for sale, under $3m (your line), in (i) absolute numbers, (ii) months of supply at current sale rate, and (iii) comparison to 2, 3, 4 years ago?
“the most desireable “urban” neighborhood” = whatever the vague equivalent of LP/LV is in another city, as oppposed to the vague equivalent of Winnetka or Barrington or Lake Forest or Naperville (desirable “suburban” neighborhoods). Where someone who wants to live “in the city” would look for a house. Neighborhoods with high walk scores, objectively or relative to the metro average. Places with (borrowing from Bobbo) SWPL in walking/biking distance.
“Tampa and Austin” = Tampa, Florida and Austin, Texas, cities that you used as examples.
I have to believe that *everyone* who read that understood what that meant, and that you were pulling a [insert disingenuous political “commentator” of your choice] bullshit “you’re framing it wrong”, but maybe you did need it explained to you.
Do those guys actually hold their own loans in any significant amount, or are they overwhelmingly originators/servicers for GSE loans?
I don’t have good access right now
I did see that regardless the non mortgage companies have 50 percent of their secured funding from the banks
I could be reading this wrong
https://www.fitchratings.com/research/banks/non-bank-mortgage-lenders-to-withstand-liquidity-funding-pressures-05-07-2023
“the most desireable “urban” neighborhood” = whatever the vague equivalent of LP/LV is in another city, as oppposed to the vague equivalent of Winnetka or Barrington or Lake Forest or Naperville (desirable “suburban” neighborhoods). Where someone who wants to live “in the city” would look for a house. Neighborhoods with high walk scores, objectively or relative to the metro average. Places with (borrowing from Bobbo) SWPL in walking/biking distance.
Isn’t this why all real estate is local anon(tfo)? You have no idea any of this criteria you listed out. I certainly don’t. Don’t live there. What I do know is that inventory is up big in Austin and Tampa. Austin is back to 2019 levels.
Why are those people listing but they’re not listing in Chicago? What is it about those 3.5% rates in Chicago that makes people want to hold onto them SO tightly, but they don’t in Austin?
All of Chicago has tight inventory. Chicago suburbs too. Heck, the entire state of Illinois is at record low inventory.
Why?
Yet Texas is not. Many Texas cities have rising inventory.
I really wish someone could explain it to me.
Apparently, no one on this blog has any answers.
“I’m not going to be bothered posting links for all the new construction homes on the market in Austin and Texas in general as well as the southern region of the country.”
Redfin lists 1209 homes out of 5400 as “new construction.” This includes SFH, condos, townhouses.
That’s a small number for a city that size. Just one new condo building could be 150 to 500 homes. Of course, they aren’t going to list ALL of the units on the MLS. Are they?
“1 – Apartments are not houses. As someone is wont to say “People just want to live””
Houses are so 1930s. This is 2024. We are a dense, major city with thousands of people moving here yearly. We are only thinking up and out in many neighborhoods. It’s not worth it to build single family homes in the city anymore except for some neighborhoods where it’s infill. At the bare minimum it should be townhouses.
So, yeah, Chicago is building a ton right now.
Need bigger units again, like they were building after the housing bust. 3 and 4 bedrooms.
“3 – Proposed projects are not real. Please link approved plans for 17000 apartment units”
I don’t have time to educate someone who lives far away in another city about what Chicago’s Planning is approving right now. But you can find out JohnnyU. They post all of the developments which get city approval.
Of course, after that, the developer has to get financing. That’s the tough part right now because of the costs. As soon as those rates drop, more developers will be moving forward with their projects. It’s why the next 2 years are going to see a dearth of new apartments coming to lease. There simply aren’t many under construction right now.
Rents will rise through 2026 when more product will be coming on the market again. But it probably won’t really pick up until 2027-2028 with completions.
Do those guys actually hold their own loans in any significant amount, or are they overwhelmingly originators/servicers for GSE loans?
anon tfo
so having some time now
Based on the search results provided, in 2022 nonbank mortgage companies originated approximately 66% of mortgages in the United States.
https://www.federalreserve.gov/econres/feds/files/2022059pap.pdf
also in the white paper it says
Although nonbanks mostly use the originate- to-distribute model of lending, they frequently remain the servicing entity after the sale of mortgages to various third parties. Even in situations where nonbanks sell mortgage servicing rights, they typically sell those rights to other nonbanks. Therefore, mortgages that are originated by nonbanks are likely serviced by nonbanks. Please see Section 3.2 for more discussions.
“Houses are so 1930s. This is 2024. We are a dense, major city with thousands of people moving here yearly. We are only thinking up and out in many neighborhoods. It’s not worth it to build single family homes in the city anymore except for some neighborhoods where it’s infill. At the bare minimum it should be townhouses.”
I mistyped I meant homes, not houses
This is especially funny as you were wont to state, people would pay more to own vs rent because they “want to live” LOL
“I don’t have time to educate someone who lives far away in another city about what Chicago’s Planning is approving right now. But you can find out JohnnyU. They post all of the developments which get city approval.
Of course, after that, the developer has to get financing. That’s the tough part right now because of the costs. As soon as those rates drop, more developers will be moving forward with their projects. It’s why the next 2 years are going to see a dearth of new apartments coming to lease. There simply aren’t many under construction right now.”
So you disagree with me by agreeing with me? Approval isnt shovels in the ground and IF they get financing.
Interesting strategy cotton
Did you forget the list of the other 70 story residential building under construction? Or this this more Sabrina ranting?
“Redfin lists 1209 homes out of 5400 as “new construction.” This includes SFH, condos, townhouses.”
seems like a lot to me. they’ve also build thousands over the last few years. dramatic increase in supply over the years (up 40% since pre-covid). bubble is going to burst and people want out.
“seems like a lot to me. they’ve also build thousands over the last few years. dramatic increase in supply over the years (up 40% since pre-covid). bubble is going to burst and people want out.”
It’s 5 or 6 high rises.