After Nearly 2-Years on the Market, This Lincoln Park Lofty Townhouse Sells: 2222 N. Racine
We last chattered about this 3-bedroom “lofty townhouse” at 2222 N. Racine in Lincoln Park in February 2011.
See our prior chatter here.
Originally listed in June 2009, it had been reduced $90,000 to $599,000 by the time we chattered about it.
At least one poster had a story of a client who made an offer on the property years before at $525,000 which was never countered.
The townhouse finally sold after nearly 2-years on the market for $565,000.
If you recall, the unit was not your cookie cutter townhouse.
At 2100 square feet, it had 16-foot high ceilings in the living room along with exposed brick and some timber ceilings.
The custom kitchen had soapstone counter tops and stainless steel appliances.
There were 2 master suites with the top floor bedroom leading to the roofdeck.
Some of you thought the layout, with the three bedrooms all on different floors, narrowed the list of potential buyers.
The townhouse had a 2 car attached garage, central air and a roof deck.
Ivona Kutermankiewicz at Koenig & Strey Real Living had the listing.
Unit #13: 3 bedrooms, 2.5 baths, 2100 square feet, 2 car parking
- Sold in May 1992 for $274,000
- Sold in April 1995 for $325,000
- Sold in June 1998 for $380,000
- Sold in May 2002 for $485,000
- Originally listed in June 2009 for $689,000
- Reduced
- Was listed in January 2011 for $615,000
- Reduced
- Was listed in February 2011 for $599,000
- Sold in May 2011 for $565,000
- Assessments of $281 a month (includes cable)
- Taxes of $5120
- Central Air
- Washer/Dryer
- Bedroom #1: 17×13 (third floor)
- Bedroom #2: 16×12 (second floor)
- Bedroom #3: 14×9 (main)
Looks like Agent Ivona nailed it (though she didn’t predict a closing price).
I had only predicted the sellers getting $40k back on their reno investment, but they got back $80k. Plus they got to live in a unique, updated (albeit suboptimally located) place for nearly a decade (and unless they borrowed heavily against the place to do the reno, they must have made a huge dent in principal, while enjoying tax deductions).
Congrats to the sellers and buyers.
This place would have had to sell for $606,333 to be worth what they bought it for in 2002.
We are all lookin at the bottom in our rearview mirror. Too late!
homedelete on February 22nd, 2011 at 11:23 am
$399,000.
Well, I think its safe to say you were WAY off on this one HD.
Well see what a comp sells for in 2013.
“Well see what a comp sells for in 2013.”
But this isn’t 2013. Houses have a certain value TODAY. In predicting a sale price, whether they will go up or down is not the point.
I believe it is still 2011 and it sold for $165,000 more than your prediction. You really have a huge problem admitting you were wrong.
“Well see what a comp sells for in 2013”
A strange way of saying you are calling the bottom?
Just being sarcastic. You see, Sabrina’s second post today pretty much explains why I’m pricing for 2013 on this property because the bottom has fallen out of the Chicago market. Other areas in the country may be recovering, and some sub-market niches may be doing ‘better’ than before, but the vast majority of the market is sinking. And that will in include the value of this unit in the near future. I will, however, admit I was wrong on the timing, and that’s pretty obvious, but I’m right about the direction things are going.
“A strange way of saying you are calling the bottom?”
“because the bottom has fallen out of the Chicago market.”
It has? How so?
“I was wrong on the timing, and that’s pretty obvious, but I’m right about the direction things are going.”
If you were so wrong about the timing what makes you think you are right about the direction? Two wrongs don’t make a right.
if the bottom has fallen out, why keep talking about it? what’s interesting about spending energy every day debating the inherent value (or lack of value) of a falling knife?
See sabrina’s second post today regarding the newest IAR figures.
“#chukdotcom on May 19th, 2011 at 8:05 am
“I was wrong on the timing, and that’s pretty obvious, but I’m right about the direction things are going.”
If you were so wrong about the timing what makes you think you are right about the direction? Two wrongs don’t make a right.”
“See sabrina’s second post today regarding the newest IAR figures.”
I see them. They indicate what happened over the last year. What does that prove about the future?
Good grief. Can we please stop talking about the so-called “Chicago market” every time a new news article comes out? I think the overuse (or overly liberal use) of “Chicago market” has convinced some folks on here that there is some monolithic local real estate market, one within which trends and so-called “bottoms” are universal.
This place at 2222 N. Racine has sold for more than its pre-bubble-peak price. Granted, these folks no doubt put in excess of $100k into the place, but that too was some time ago (I doubt they lived in it for several years and THEN commenced a gut reno). Despite the fact that this is a property that (i) is too far west for many (well, for me at least, (ii) is in a less than stellar elem area, (iii) has a bedroom layout that might turn off some buyers, IT JUST CLOSED FOR FAR MORE THAN wHAT MOST CC DOOMSAYING “ONLY A KNIFECATCHER WOULD BUY ANYTHING BUT A SFH-IN-EDGEBROOKPARKRIDGEWHATEVERSVILLE” regulars predicted.
Heck, let me lead by example: “I was wrong about this listing; it sold for more than what I predicted ($525k).” That wasn’t so hard.
Good Job anonny, and $525 seemed like a logical guess. Probably where I would have expected this place to sell. I get tired of coming on here every day and seeing HD and others claim the end of the world is coming and then never owning up to when they are obviously wrong on prices or the price they said will be the price 3 years from now. Makes no sense.
As for the “data”, I still do not understand why everyone claims it is so grim. Do people expect the market to have higher volume than when the homebuyer credit was in place? Price is down YOY but up MOM, seems like a wash.
“I get tired of coming on here every day and seeing HD and others claim the end of the world is coming and then never owning up to when they are obviously wrong”
Haven’t you heard? The end of the world IS coming. This Saturday. And HD’s planning on taking all his CDs with him.
“In predicting a sale price, whether they will go up or down is not the point.”
But it is when predicting future value, which is what HD pretty much always does.
“As for the “data”, I still do not understand why everyone claims it is so grim. Do people expect the market to have higher volume than when the homebuyer credit was in place? Price is down YOY but up MOM, seems like a wash.”
That is why you need to look at the broader trend. Fact is, volume is at or near 20+ year lows. A slight MOM median price bump is irrelevant in comparison, and most definitely not a wash.
OK everybody I was wrong. prices are rising, not falling. volume will pick up, LP is the greatest place in the world and in 2013 only JC knows what’s going to happen!
have a nice life!
“have a nice life!”
All 48 hours that remain!
“OK everybody I was wrong. prices are rising, not falling. volume will pick up, LP is the greatest place in the world and in 2013 only JC knows what’s going to happen!”
You do yourself a disservice with the imprecision of your comments. When you give predictions, do you mean that what a place will sell for now, or in the (very gloomy) future? I think for the most part you don’t mean what the current market price will be, but you don’t say so b/c you enjoy projecting the doom/gloom (have I mentioned that I watched The Company Men recently on a flight, found the main part quite depressing and thought it was probably similar to what reading nothing but HD posts would feel like).
Saying that prices will crater within a couple years is at least a POV and relevant generally (albeit repetitive when said about every single property). Saying that prices are cratering right now for every property isn’t true.
“But it is when predicting future value”
No, it’s not. Are you confused on what “median” means?
How did this turn into jump on HD day? It’s not marked on my calendar.
regardless, I admitted i was wrong about the final selling price of this property. But I’ve also been right on the price of many others.
if there’s anything to be learned from this, it’s that two years of on and off listing (first listed june 2009) and if you’re lucky you’ll eventually find a knifecatcher.
But the market will eventually run out of knifecatchers, which is clearly beginning to happen.
“clearly”
That’s always a dangerous word to use, especially when discussing the future.
G: But it is when predicting future value
chuk: “No, it’s not. Are you confused on what “median” means?”
Not at all. But you weren’t talking about medians in the post I responded to below. You are apparently confused.
chuk: “But this isn’t 2013. Houses have a certain value TODAY. In predicting a sale price, whether they will go up or down is not the point.”
“How did this turn into jump on HD day? It’s not marked on my calendar.”
Duh – Jump on HD day is clearly two days before the rapture.
I love all these geniuses on here that think they are so smart for not buying during the bubble. When in fact they are not geniuses, but unmarried/have no kids. Is anyone on this site a renter who saw the bottom failing out in 2005 and decided to wait (and is still waiting) for the bottom a person who is married and starting a family? People simply buy when they start having kids (or at least they used to).
Here is my personal history.
Got married
Bought a house in May of 2004 for $153,000
Marriage quickly fell apart
Sold house in Nov of 2006 for $216,000
Got Divorced (no kids involved)
Got remarried
Bought a much nicer new house in a much nicer hood with a much nicer wife in May of 2010 (using proceeds from the first house)*
But this did not make me a financial genius it made my timing extremely lucky.
*proceeds grew very nicely due to smart investments – which was also mainly lucky timing
HD:I (along with many readers here IMO) appreciate your perspective and enjoy your posts. I applaud your willingness to take stands and could care less whether the ratio of predictions to actual results are near perfect or not. I also believe the obvious – residential real estate market is a very imperfect market and one qualified buyer (capable of borrowing sufficient amount to close no matter what bank’s appraiser concludes) falling in love with a specific property is just that, not necessarily a sea change.
“People simply buy when they start having kids”
Have they stopped having kids then? Current sales volume says they ain’t buying much now, that’s for sure.
Full quote:
People simply buy when they start having kids (or at least they used to).
G on May 19th, 2011 at 11:07 am
“People simply buy when they start having kids”
Have they stopped having kids then? Current sales volume says they ain’t buying much now, that’s for sure.
“People simply buy when they start having kids (or at least they used to).”
Oh, you meant last century. I’m a little confused by your point, though, since you didn’t.
I have three points:
1) That all the genius bears on this site are either single men or not in the market now in as they bought last century. Who else rents on a 10-year plan?
2) That people who did buy are more a victim of timing than stupidity.
3) There been a shift in thinking. That, in general, people now realize that you buy for a longer period of time. Also just because you want to buy doesn’t mean you can anymore, as the lending requirements are more stringent.
“That all the genius bears on this site are either single men or not in the market now in as they bought last century. Who else rents on a 10-year plan? ”
That’s an incorrect impression of at least one of the bears.
Note, to be clear, I’m an owner.
“Is anyone on this site a renter who saw the bottom failing out in 2005 and decided to wait (and is still waiting) for the bottom a person who is married and starting a family?”
Me, more or less. Am married with kid, have looked at buying for last few years, and would have been more serious if I hadn’t felt prices were too high.
Don’t care that much about trying to time the bottom exactly (I’m less bearish than others, perhaps selectively so), just wanted to avoid the worst of the bubble. May buy this year, will almost certainly buy by end of next summer.
Southbound: thank you!
b: ‘Is anyone on this site a renter who saw the bottom failing out in 2005 and decided to wait (and is still waiting) for the bottom a person who is married and starting a family?”
Basically me, except I’m not waiting for the bottom. Not single, not childless.
I knew something was seriously wrong in 2005, 2004 in fact, when multiple files came across my desk that involved land barons with 4/5/6 properties around the city yet had incomes of only $35,000 a year.
I knew by 2007 it was going to implode when some friends purchased a million dollar home in the GZ to flip yet this person made only $30,000 a year in retail. btw the house has been in foreclosure for 3 years…
These are just anecdotal stories and is not the entirety of the basis of my opinion. I started lurking on the housing bubble blog in early 2006 and that’s when I read the handful of other people in the internets world who thought it was going to all crash.
Also, do not forget that when I came of financial wherewithal and of maturity to buy (stable job, family, etc) Chicago was extremely bubblicious. I have extended family members did buy at roughly that same time period and now they’re underwater beyond even their 20% down payment. I have multiple friends who bought during this period also, in fact, I attended the closings for two of them, and they’re both in foreclosure as of today. I specifically remember telling them “you know, houses are really expensive right now and I have a feeling they’re going to get cheaper” and I specifically remember telling one friend “you are buying the most expensive house on the block and yet it is nowhere near the nicest home on the block, maybe you should wait a while” but they refused to listen to me. granted I didn’t want to press very hard, I didn’t want to sound like a nutcase.
The one guy who did listen to me wrote me an e-mail last year and said, (paraphrased) “homedelete, I was a little skeptical of your claims back in 06 that the market was going to crash but I waited anyways and I wanted to thank you for your advice. I did wait, the market crashed, in 2010 my wife and I bought a home on the north shore that we would have never been able to afford if tried to buy when I got married back in 2006”.
honest to god true story – not even embellished for the internets. . I’m glad I helped at least one person.
Married… Owner… Bear… Always in the market. That makes 2.
“I knew something was seriously wrong in 2005, 2004 in fact,”
The bubble was being noted as inflating in Mar-02:
http://www.economist.com/node/1057057
called a bubble in May-03:
[change number in url to 1794873]
By Jun-05, the repercussions of the coming pop were a frequent topic:
[change number in url to 4079027; check “related items”]
This was *not* a mystery to anyone looking at it from a macro perspective and keeping a lid on manic tendencies.
anon(tfo) – you’re right, plenty of people were calling earlier than 2004; just not me. In March of ’02 my head was buried in a bankruptcy textbook and in march of ’03 my head was buried in a complex litigation text book. like I said, when I came into the wherewithal (financial, familial, stability) in 2004/2005, I looked at the landscape and came to my own conclusions based upon my own finances. Then in 2006 when all the apartments up and my blocks were being converted to 2/1’s and 2/2’s I googled the housnig bubble and that’s when I developed more than a passing interest in what was going on and what was about to happen.
I will admit my views at the time were unorthodox and even today my views are still considered a bit fringe.
“except I’m not waiting for the bottom”
You’re waiting until we’ve passed the bottom?
Actually, I’m not timing the bottom at all. Without getting too specific, I have an idea in my head of what I want and how much it should cost and when it reaches that point I’ll buy. I believe my expectations are reasonable, well thought out and entirely achievable, but requires patience as we can see by the slow moving train wreck. That’s my strategy for negotiations in general, I’m not an ‘every last dollar’ kind of guy by any stretch of the imagination.
The other requirement I have is no bidding wars. I’m not going to get into a bidding war with multiple buyers 24 hours after a property hits the MLS.
That’s it.
DZ on May 19th, 2011 at 12:27 pm
“except I’m not waiting for the bottom”
You’re waiting until we’ve passed the bottom?”
DZ… That’s exactly what i’m waiting for.
Has the Toyko real estate market reached a bottom yet?
“#gringozecarioca on May 19th, 2011 at 12:44 pm
DZ… That’s exactly what i’m waiting for.”
“Has the Toyko real estate market reached a bottom yet?”
It appears it did in 2004.
http://www.wealthdaily.com/articles/real-estate-dividends/2856
But no V-shaped bounce. And the MSM was calling a bottom quite frequently, and prematurely, between 1990-2004.
Executed Recorded Document Type Amount
05/16/2011 05/31/2011 MORTGAGE $417,000.00
Look out everywhere, there is a thief in the area – someone got a ‘steal’! Hahahahah
Congrats to the new buyers and I home they enjoy their wonderful home. Its a competitive market out there for quality properties!