Are Short Sales Bringing Down Prices in Schorsch Village?
What should that bungalow cost on the far west side?
Schorsch Village is a section of the Dunning neighborhood on the far west side which has bungalows and tudors from the 1940s.
As some of you chattered about recently, some of these homes are being sold at a massive discount to previous sale prices.
What will these sales do to the values in the neighborhood? Will we again see bungalows under $200,000 on the far west side?
Two examples- with one of them under contract:
3630 N. Oak Park: 3 bedrooms, 3 baths, 2 car garage
- Sold in January 1992 for $127,000
- Sold in February 2002 for $271,000
- Currently listed as a short sale for $289,000
- Lis pendens filed in April 2008
- Mortgage in April 2007 for $405,650
- Under Contract
- Taxes of $2,618
- Century 21 McMullen has the listing
3441 N. Rutherford: 4 bedrooms, 3 baths, 2.5 car garage
- Sold in December 1997 for $146,000
- Sold in Mary 2003 for $307,000
- Sold in June 2005 for $384,000
- Currently listed as “pre-foreclosure” for $250,000
- Lis pendens filed in December 2007
- Taxes of $4,643
- Re/Max Professionals Select has the listing (see more pictures here.)
It’s amazing that these brick homes sold in the $100’s during the 1990’s and reached into the $300’s and $400’s during the bubble. Most of the bungalow belt neighborhoods get glossed over when talking about the bubble in Chicago. Everyone focuses on the highrises in the loop or the condos in LP; but many neighborhoods experienced outlandish and ridiculous appreciation during this decade, as evidenced by the houses above.
Based on the BLS CPI calculator:
$127k in ’92 is $199k in ’08 ($162k in ’02, when last sold)
$146k in ’97 is $200k in ’08
I would contend that they were somewhat underpriced in the 90s (at least based on what the neighborhood is like today–maybe it was a fair ‘hood-based discount in ’92), but obviously not by 50%.
HD–serious question–would either of these qualify as “move-in condition” for our hypothetical $80k income buyer? If not, why not?
And, yes, I defintely agree that the $400k mortgage and the $389k sale price were totally insane and unsupported by any reality. But I don’t think that $250k-ish is out of whack for these houses–they should (maybe they don’t, but they should, in the broader market) rent for around $1500.
Someone paid $384,000 for a shack with a 1950s kitchen? They must have moved here from California, who else would call that a good deal?
They look move in condition to me. Maybe a few cosmetic touch ups. It would be nice to see a complete remodel with granite countertops, new bathrooms and all but those can be renovations to do own your own.
$1,500 a month rent sounds about right. That’s slightly less than a $200k mortgage at 6.5% PITI. Good condition bungalows in places like Ravenswood Manor, Old Irving, Avondale, etc, should sell for a a bit more and crappy bungalows in places like Roseland should sell for a heck of a lot less.
enough with the “granite countertops” already…
they will soon be considered the avocado colored refrigerators of this decade.
Schorsch Village is a stable quiet neighborhood with many attractive blocks and nice parks. True “Schorsch Village” has a distinct mock-Tudor bungalow archetype. If this neighborhood had better mass transit and easier access to CTA subway system, it could become a very attractive “young family” mecca. Unfortunately, access will always be a problem for buyers who need to commute to downtown.
Stainless steel is the avocado green too.
Nice places.
The Bungalow Belt will become attractive again once prices fall back in line. The mass transit / commuting issue will remain, of course, but not everyone needs or wants to commute downtown.
(Why are the taxes so much lower on House #1?)
Why are the taxes so much lower on House #1?
Three probable factors (probably others, too):
-4 br v 3 br
-larger garage
-last sale price
I think stainless steel will age much better than avocado green, but its definitely going out of style for new kitchens.
If you want to see the avocado green of the present, just go to crateandbarrel.com. It’s like they’re trying to bring back the worst of the 70s decor.
“going out of style for new kitchens”
So, what IS the new style that everyone constantly refers to? Oiled Bronze? Goldenrod? What? Don’t say “cabinet-front”, unless you’re only talking high(-ish) end, with the “masses” sticking with either SS or whatever’s cheap.
Stainless might be displaced by newer fads as the latest scream, but it won’t go “out of style” the way colors like avacodo or turquoise or pink. It will just become another version of white, a reliable classic. It’s just too easy to get along with and works with almost any style or palette.
The colors being shown now will pass on very quickly. Why are designers trying to revive the worst of the 50s and 60s? I was walking through Macy’s cookware on my way somewhere else, and the place was stuffed with baby pink small appliances.
http://www.cookcountyassessor.com/data/searchflat/ParcelImage.asp?pin=132
http://chicago.yahoo.idx.prupreferredchicago.com/details.aspx?firstrecord=0&VIP=PrudentialProperties.com&searchgeo=60641&propertytype=1%2c2&sort=8&sortacdc=desc&searchtype=8
Here’s a bungalow for sale slightly east of the properties above. This is the first time I’ve seen it on the market although it could be a relist.
Sold in 9/97: $133,000
9/97 – today: Cashout refi x 3 for a total of $396,000 in mortgages.
LISTED 8/08: $395,000.
SH should have invested in Portgage Park; appreciation there is arguably higher than LP or GC.
“Macy’s … stuffed with baby pink small appliances”
Thank you, Martha Stewart. She’s done.
“Cashout refi x 3 for a total of $396,000”
Well, there have been a lot of people who have put way too much money into their homes. It is possible that they foolishly put in a deluxe kitchen and a home theater room in the basement. As we all know, that never gets 100% return on cost, and these folks are almost certain to wind up in trouble even if they didn’t spend their “equity” on SUVs and jetskis.
First, the taxes vary due to the number of bedrooms listed. Second, Schorsch village homes are well built. The hardwood floors are original, the homes are all brick, with coved ceilings, decorative arches, wood trim, and flush radiators. The homes tend to have steel support beams and be on slightly oversized city lots. Third, the neighborhood is great – Shabbona Park is close, Shopping at the HIP, Bridge Elementary school is listed near the top schools in Chicago.
The homes were overpriced between 2002 – 2006, but speaking as someone who lives in the neighborhood the prices between $250K-$350K are more in line. If you can get a short sale it would be a great investment at this time.
Growing up in Schorsch Village at Lawrence and Cumberland Avenue in Chicago was truly a lifetime of dreams and family get-togethers.
My name is Moe Schorsch. My father, Bruce Schorsch, along with his father, my grandfather, Martin Bruce Schorsch built and resided in Schorsch Village located within the perimeters of Lawrence Avenue, Cumberland Avenue and Montrose Avenue.
All the Schorsch cousins lived within these boundries and take with us lovely and loving memories.
We attended the same schools, and rode our jalopy bikes around…me with my pink and white streamers blowing in the breeze.
My dad was in the process of building these beautiful brick homes and we enjoyed playing in them as they were being built. I still remember the smell of 2 by 4’s being cut to be placed within the walls.
Anyone thinking about moving into this neighborhood, which I shall always hold close to my heart, will be making the right decision. Only good things come from my old stomping grounds
Maureen Schorsch
(Moe)
3630 N Oak Park sold for 268k on 9/5/08. No record of 3441 N Rutherford selling as of yet.
I love my home in the Schorsch Village neighborhood even though technically I am in Dunning. I have an original English Tudor Schorsh home. I bought right before the prices peaked to their highest and yes I’ve lost alot of money since the recession. But because of the way my home was built, it’s naturally cool in the summer. In the winter my radient heat is warm and even. I hope to stay in my home for a long while.
very interesting comments here.these are very solid well built homes…you won’t see any of that leaky split-faced block on any of these homes(as used on thousands of lincoln park,etc homes in the last 15 years)… in a nice traditional family neighborhood where everyone knows their neighbors. nice to see some old homes here once in a while that arent in the magical so called *green zone*. c’mon…theres a whole big city out there,check it out.
Okay, this *really* makes me wish there were an “older posts commented on in the past 7 days” list on the page somewhere.
I’ve been looking for some more homes in Schorsch Village to cover. It’s so cute there if you’re looking on the far west side.
Sabrina,
the mini french tudors in schosch village are still beautiful. i am through there a lot i have some cousins that play pee wee baseball and football at shaboner park (shaboner spelling was intentional).
and when i need a different scene during a medium jog and need to stay close i drive over there. there are some boarded up houses there towards addison but the tudors still look to be holding well. the areas around it are slipping.