Chicago Market Conditions: June Sales Remain Hottest Since 2006
The Illinois Association of Realtors is out with the June and half year numbers:
The city of Chicago saw a 0.2 percent year-over-year home sales increase in June 2016 with 3,210 sales, up from 3,202 in June 2015. The median price of a home in the city of Chicago in June 2016 was $300,000, up 4.1 percent compared to June 2015 when it was $288,250. Year to date home sales totaled 13,953, a 4.1 percent increase compared to last year and the median price averaged $275,000, a 3.5 percent gain.
Thanks to G for the historical sales data:
- June 1997: 1,817
- June 1998: 2,214
- June 1999: 2,435
- June 2000: 2,513
- June 2001: 2,451
- June 2002: 2,590
- June 2003: 2,891
- June 2004: 3,752
- June 2005: 3,850
- June 2006: 3,557
- June 2007: 3,127
- June 2008: 2282
- June 2009: 1981
- June 2010: 2526 (tax credit sales)
- June 2011: 1841
- June 2012: 2246
- June 2013: 2729
- June 2014: 2846
- June 2015: 3202
- June 2016: 3210
Here is the monthly median price data:
- June 2008: $309,945
- June 2009: $242,050
- June 2010: $234,250
- June 2011: $207,000
- June 2012: $216,700
- June 2013: $254,900
- June 2014: $275,000
- June 2015: $288,250
- June 2016: $300,000
If inventory was higher, I think we would have seen 2005-2006 type sales numbers. But inventory continues to fall.
“Sellers continue to reap the rewards of a summer market where buyers are choosing from a greatly diminished pool of properties,” said Mike Drews, GRI, president of Illinois REALTORS® and broker-associate with Charles B. Doss & Co. in Aurora. “The market dynamics we have experienced throughout the spring and early summer persist as the number of homes for sale struggle to keep pace with buyer demand.”
The time it took to sell a home in June averaged 55 days, down from 62 days a year ago. Available housing inventory totaled 64,724 homes for sale, a 15.1 percent decline from June 2015 when there were 76,207 homes on the market.
There were no statistics given for inventory specifically in Chicago.
“Chicago homebuyers are having to work harder to find properties which meet their criteria and budget,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations at the Oakbrook-based Inland Real Estate Group of Companies, Inc. “A combination of low mortgage rates and a limited number of properties on the market is pushing median prices higher, a continuation of a trend we have seen for much of the warm-weather selling season.”
When will some of the newer apartment high rises downtown be converted to condos to meet the growing demand?
Why aren’t we seeing more building on the lower end of the spectrum, even in areas where land prices are cheaper like the far South Loop?
Illinois home sales, prices climb higher in June and first half of 2016 [Press Release, Illinois Association of Realtors, July 21, 2016]
The fifth graph is inventory: http://www.chicagonow.com/getting-real/2016/07/chicago-real-estate-market-update-home-sales-hit-10-year-high/ Down significantly from last year and a record low during the time period available to me.
Very few of the newer downtown apartment buildings will be converted to condos. These buildings were built with 0.45-0.55 parking stalls PER UNIT, thereby rendering them unsaleable to most condo buyers. In addition, with cap rates still very low, institutional investors are bidding the highest end of these apartment buildings up past $650,000 per unit, far in excess of condo values.
I wouldn’t want to buy in a 400-500 unit converted building. Too many potential issues to list them all.
Personal data point. Bought my place in the spring of 2013 and sold it last month. After the realtors, attorneys, closing company, and gubment took their money I profited 82k. After no real offers the first week, we had a bidding war for a bit between 2 couples. As a result we were able to secure an ‘as is’ sale at the price I was hoping to get. Many units in the building were up for sale since prices had pushed to an all time high. It definitely is a sellers market right now.
On a side note, my assessments had gone from 780 a month to 920 a month in just 3 years. Is that happening elsewhere? My building was about 15 years old.
“These buildings were built with 0.45-0.55 parking stalls PER UNIT, thereby rendering them unsaleable to most condo buyers.”
Millenials don’t have cars. They don’t care about parking anymore.
By the way, my uncle just sold his 50 year old tri-level in Schaumburg in 2 weeks.
Buyer is paying all cash.
House is under $225,000.
In Schaumburg.
It wasn’t a foreclosure. There was no granite in the kitchen. Nor stainless steel. Yet someone is paying ALL CASH with the lowest mortgage rates in history to buy this property.
But don’t worry. This is COMPLETELY normal.
Move along now.
“my assessments had gone from 780 a month to 920 a month in just 3 years. Is that happening elsewhere?”
That seems like a lot. 5.7% compound growth. That’s why I have an issue with assessments that are large relative to the carrying cost of a condo. One of the advantages of buying vs. renting is that you lock in your cost. But when the assessments get high it’s like renting some percentage of your condo.
“Yet someone is paying ALL CASH with the lowest mortgage rates in history to buy this property.”
If you have the cash not carrying a mortgage is looking smarter and smarter. What else are you going to do with the cash? It’s earning 0 or you can put it in the stock market at an all time high despite slow global growth and political uncertainty.
“What else are you going to do with the cash?”
You’re SERIOUSLY asking this???
There are no words…
Buying a property with all cash with mortgage rates at their lowest in history is the stupidest thing you can do (as an investor.)
I was talking about people buying homes for all cash to live in – which does happen. As an investor it’s a bit different – unless you have cash sitting around and you just want to buy 1 property – not 4 or 5.
“Buying a property with all cash with mortgage rates at their lowest in history is the stupidest thing you can do (as an investor.)”
you do realize you can take out a mortgage at any time on a house you paid cash for… yeah?
I see two types of cash buyers. The first is the investor/developer looking for cheaper properties to flip.
The second are regular buyers who are trying to be more competitive in a tight market. They pay cash to make their offers more attractive and then mortgage the home after the fact through a refinance know as delayed financing. This is very common in NYC and West Coast where being a cash buyer is far more likely to get your offer accepted.
“Buying a property with all cash with mortgage rates at their lowest in history is the stupidest thing you can do (as an investor.)”
That’s not necessarily true actually, I see lots of investor cash deals going on these days. It’s actually more difficult that you think to get a mortgage for an investment property. and the prom notes have a higher vig too. I just went to a closing the other day for an all cash closing for a $100k investor condo in the city. No bank was gonna lend this guy money to buy this condo as an investment, so he paid cash.
“They pay cash to make their offers more attractive and then mortgage the home after the fact through a refinance know as delayed financing.”
Or you can just provide proof of funds and waive the mortgage contingency and then get the mortgage – unless the seller values a quick close.
“Buying a property with all cash with mortgage rates at their lowest in history is the stupidest thing you can do (as an investor.)”
If you borrow money, even if the interest rate debt service is minimal, you still have to pay off the principal! I recall thinking about HELOC’ing $100K back in 2011 to invest in the gold market, thinking that all the fundamentals for the metal were in place due to money-printing, devaluations of fiat etc. Luckily, I never got around to doing that. I would have lost money and still have had to pay back the principal. in 2014, the next decent windfall I had from work, I took that money and paid off my mortgage.
I think lots of professionals take out the $1.25 million mortgage to buy the $1.8 million house, because the loan is “cheap” (they also get interest deduction). Do they even have stock portfolios?? I don’t really know. If they do, they’re simply hoping the stocks or mutual funds will earn more >5% than they are paying on the mortgage. This can work until it doesn’t.
But the loan principal still has to be repaid, even if the interest rate was zero.
If someone were to HELOC equity, where would you suggest putting it to work Sabrina?
“If someone were to HELOC equity, where would you suggest putting it to work Sabrina?”
Take out dat HELCO HH, I’ve got plenty of opportunities for you to invest: in up and coming modern artists, oil plays in southern IL, silver bullion…
HELOC rates are pretty high considering this rate environment, and kind of a pain to obtain, you practically have to go through mortgage underwriting just to get a Heloc these days
“Sabrina…
Millenials don’t have cars. They don’t care about parking anymore.”
While I don’t completely agree with this I think the trend is moving in this direction – especially among the Millenials who are more comfortable with the “sharing” economy (and by preferring renting vs owning they are just further illustrating this). If self driving cars take off (they probably will) then renting a car uber style will be simple and cheap. Surge pricing will be a thing of the past as all those garaged cars will be on the streets at night or during inclement weather when their owners are at home. This may be foreign to all us “older” people (35+) but its pretty normal for the younger generation who are comfortable renting a dress to wear when going out in vegas (rent the runway). For families it will still be very important to have a parking spot but I don’t think we’ll need 1 per adult in the future. To see the current value of parking check out this place:
https://www.redfin.com/zipcode/60614/filter/include=sold-1yr,viewport=41.90574:41.90405:-87.62555:-87.62884,no-outline
If it had parking it would probably be worth $500-750k more.
sorry – link should be:
https://www.redfin.com/IL/Chicago/1224-N-Astor-St-60610/home/14125049
“If self driving cars take off (they probably will) then renting a car uber style will be simple and cheap.”
There are plenty of Zipcars already all over downtown. The Millenials I know just rent those if they need to leave the city. Otherwise, why would you need a car? Uber, taxis, CTA, Metra can get you everywhere you need to go.
It’s really amazing how many Millenials don’t own cars now.
I just read an article that says Uber/Lyft are actually more cost effective than car sharing because in many cities, car sharing is viewed as a rental and has to pay the car rental tax, where Uber/Lyft have managed to avoid the taxi taxes and surcharges…
“No bank was gonna lend this guy money to buy this condo as an investment, so he paid cash.”
You just made my point. He’s not making the choice whether or not to actually get the loan. If he wanted to buy the condo, he HAD to pay cash.
Others are buying just to pay cash when their money can be used elsewhere. But this is why the average amount in a 401k is like $50k in this country. People are really bad with money.
“This is very common in NYC and West Coast where being a cash buyer is far more likely to get your offer accepted.”
We’re not in NYC or the West Coast. People are paying cash right here in the fantastic Chicago suburbs- where there wasn’t multiple offers on this particular property.
Or maybe that tells you what is really going on. In Schaumburg. People are paying ALL CASH (for some unknown reason.)
This market is hot, hot, hot. Hotter than even 2007. Prices are soaring. 10%, 20%, 30% gains in just 1 to 2 years! Where will it end? Will it ever end?
I’ve never seen anything like it in Chicago.
“This market is hot, hot, hot. Hotter than even 2007.”
You mean the Green Zone market for condos and homes that have fairly updated finishes and are in a good location within the Green Zone or in a popular building – about 15% of the transactions in the city (or whatever the percentage is).
“You mean the Green Zone market for condos and homes that have fairly updated finishes and are in a good location within the Green Zone or in a popular building – about 15% of the transactions in the city (or whatever the percentage is).”
Yes- and also:
Jefferson Park
Portage Park
Irving Park
Old Edgebrook
And on and on and on.
Beverly was smoking hot this spring but I haven’t looked lately to see what is happening there this summer.
And in tons of suburbs. If your house is priced under $200,000 in the suburbs, yes, even in Schaumburg and Plainfield, it will sell almost instantly.
That is WAY cheaper than renting.
There are bidding wars in Berwyn, Oak Park, Park Ridge, Evanston.
Where is it NOT hot?
Mansions in Lake Forest are piling up (according to Crain’s.) No one wants to be in those big old houses that need a ton of work out in Long Grove either.
Old and in need of work are sitting there. Also: very far from the city of Chicago means longer market times. BUT- I’ve heard of stories of houses flying off the shelf in Bartlett and Elgin too. All depends on price.
Somehow we have the highest number of sales in the month of June since one of the peak bubble years.
If that’s not hot- what is?
And that’s when all of those new construction condos were selling. We don’t even have that right now. So I would say it’s even HOTTER in the GreenZone than in 2007.
“Where is it NOT hot?”
We’ve been through this countless times. There are plenty of buildings in the Loop that I would not call hot. Off the top of my head The Heritage hasn’t seen huge price increases. There are plenty of buildings in the South Loop that aren’t doing that well. Then there are all those Lake View 2/2s built in the early 2000s that have not appreciated at all. I just pulled up a 1 bedroom at 401 E Ontario out of the blue and it just sold around its 2007 price.
But every example is an exception according to you. My point is that 80% of the market is an exception.
“Buying a property with all cash with mortgage rates at their lowest in history is the stupidest thing you can do (as an investor.)”
You can certainly make the case that you should take out the mortgage, but paying additional cash is like getting a risk free return in the amount of the savings from not having the costs of the additional mortgage (after accounting for the tax benefit). (And I suppose you also lose the option of walking away from teh property if the real estate market tanks.) Yes, maybe it’s crazy, but you also can’t get that risk free (or close to risk free) return in the market right now.
Funny discussion……. Most people who take out a mortgage do so because this is their only option……… They simply don’t have the cash, usually they gather what little they have and purchase more house than they can afford.
The person who has the ability to pay cash usually looks at the investment in two ways, miminium down payment as a levered investment with the upside of capital appreiciation, or all cash and is looking for some capital appreciation and income…..
“This market is hot, hot, hot. Hotter than even 2007. Prices are soaring. 10%, 20%, 30% gains in just 1 to 2 years! Where will it end? Will it ever end?”
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/07/21/City%20price%20change_0.jpg
Sabrina, are YOU still renting?
http://www.csmonitor.com/Business/2012/0717/Zuckerberg-s-1-percent-mortgage-Why-does-a-billionaire-need-a-loan
From HD’s link:
An adjustable rate mortgage “is not a mainstream product.” [says Greg McBride, senior analyst at Bankrate.com.]
???
Certainly the specific loan Zuck got is not, but that’s poor understanding of the market from the author.
So, after hitting record highs in June July home sales actually went down by the greatest amount in 21 months – down 9.3% though the IAR will report a 12.0% decline. As I explain there are other indicators that may point to this not being as bad as it seems: http://www.chicagonow.com/getting-real/2016/08/chicago-real-estate-market-update-biggest-home-sale-drop-in-almost-2-years/
Not all that surprising. There’s just no damn quality inventory. Just a bunch of sows ears at silk prices.
“As I explain there are other indicators that may point to this not being as bad as it seems:”
Thanks for the update Gary.
Condo inventory is at 3.2 months. That is basically nothing.
I think there are plenty of buyers out there. Buying is now SO MUCH cheaper than renting. But there’s just nothing on the market. I can’t believe how little is still coming on in the GreenZone. Properties priced correctly are going under contract within 24 hours.
It’s not as tight as the aggregate measures indicate. Single family home inventory has been rising dramatically in the good neighborhoods and it’s rather shocking: http://www.chicagonow.com/getting-real/2016/08/signs-of-weakness-in-the-chicago-real-estate-market/ Technically a buyer’s market!
Gary–
“Could it be all the new construction driving up inventory? Could it be upper tier homebuyers giving up on Chicago Public schools?”
In North Center, it’s a lot of Column A, and some of Column B. A decent percentage of Column B are leaving the state, so it’s harder to say if it is “CPS” or just the overall trainwreck of Illinois.
I think it would be interesting to split out the new construction (including developer guts) from the normal re-sales. Tho I know that involves more ‘handwork’ to really separate the new from the used.
“It’s not as tight as the aggregate measures indicate. Single family home inventory has been rising dramatically in the good neighborhoods and it’s rather shocking:”
They’re building too many McMansions in Lakeview and North Center now. They used to be $1.1 to $1.5 million. Now they are pricing them at $1.8 to $1.5 million. There’s a new one on nearly every block- or so it seems. And they are all built on spec.
Condo inventory is still awful at anything under $500k.
“Buying is now SO MUCH cheaper than renting. ”
You said the exact opposite in 2012. And now that prices are up 50% you say it? Weird…Are you still renting?
“In North Center, it’s a lot of Column A, and some of Column B. A decent percentage of Column B are leaving the state, so it’s harder to say if it is “CPS” or just the overall trainwreck of Illinois.”
Not everyone is leaving the state. Plenty are still coming. Crain’s has had some recent articles about which Conagra executives are buying where in Chicago and the suburbs. Looks like Western suburbs are popular though.
Conagra is moving 300 executives to Chicago from Omaha in the largest headquarters move since Boeing in 2001.
That should absorb some of the upper bracket inventory. But they are still massively overbuilding in that category.
““Buying is now SO MUCH cheaper than renting.”
If that were true then there would be tons of great investment opportunities out there with great cap rates. I’m not seeing that.
“That should absorb some of the upper bracket inventory. But they are still massively overbuilding in that category.”
Yeah, if I look at SFHs above $1 MM I see inventory going from a low of 4.1 months supply in December 2013 to 9.2 months in July. That’s across the whole city.
“If that were true then there would be tons of great investment opportunities out there with great cap rates. I’m not seeing that.”
It was true in 2012. It is not true now. I will be selling my 2/2 when my tenants lease is up in a couple of months. My unit has doubled in value. It is no longer worth renting out.
investment properties and owner occupied units are not the same thing. rents have soared out of control more than the prices of owner occupied units.
But most owner occupied units can be bought as an investment and rented out so they are the same thing. Show me a property where the cost of renting is way more than the cost of buying and I’ll buy it as an investment.
Rents are absolutely ridiculous. If you’re in the green zone you’re paying around
250 dollars a square foot in rent for nicer places.
I don’t see the oversupply in the “reasonable” luxury sector. I’ve been in the market for single family homes in the 1.2-1.5 range in lakeview ( real lakeview, not “west lakeview” ) and the pickings are very slim. I’m not a huge fan of north center or roscoe village and don’t want to be on the west side far from the lake. My realtor Recently sent me a few 1 million dollar homes in freaking Logan square with cookie cutter finishes. My mind was blown.
“It was true in 2012. It is not true now. I will be selling my 2/2 when my tenants lease is up in a couple of months. My unit has doubled in value. It is no longer worth renting out.”
Agreed. I’m selling my unit in museum park after renter moves out in September. In current market I’m expecting to get around 500k easy. Bought for 350 in 2012.
“Rents are absolutely ridiculous. If you’re in the green zone you’re paying around 250 dollars a square foot in rent for nicer places.”
Actually, Class A buildings are now over $3.00 per square foot with some much higher. That’s why that 700 square foot 1-bedroom is renting for $2100 a month or higher.
The rents in this building are at that Class A level you’d find downtown.
“I don’t see the oversupply in the “reasonable” luxury sector. I’ve been in the market for single family homes in the 1.2-1.5 range in lakeview ( real lakeview, not “west lakeview” ) and the pickings are very slim.”
Sorry Riz. You’re priced out. SFHs in East Lakeview don’t sell for that low anymore. The same way you’re benefitting from the increase in price on your condo, you’ll pay when you buy the SFH so it’s really all a wash for you.
They aren’t even building for under $1.5 million in “west” Lakeview anymore- let alone East Lakeview. Same with Roscoe Village and North Center- depending on the school district, of course. The oversupply is at the higher price point. $1.5-$2.5 million. Those new builds are all over Lakeview now.
“rents have soared out of control more than the prices of owner occupied units.”
Yes. This is right. You can actually buy the same property for about 60% of what it would cost to rent it out (thanks to the record low mortgage rates.) But you have to come up with the down payment, which appears to be a sticking point for many people.
“You said the exact opposite in 2012. And now that prices are up 50% you say it? Weird…Are you still renting?”
Mortgage rates are near all time lows. They weren’t in 2012. And rents are up double digits in that time (in some cases 40% to 50% depending on location.) So it’s WAY CHEAPER to now rent the same property.
Heck, I know someone who was trying to sell a condo in West Town. The mortgage payment was $1100 a month. Couldn’t sell it. Rented it instead for $1800 in a bidding war. Of course there was a $225 a month assessment and $200 a month in taxes. But you’re still getting the tax deduction and building equity.
Go figure. People are willing to spend more to actually rent the place.
“You said the exact opposite in 2012. And now that prices are up 50% you say it? Weird…Are you still renting?”
By the way- the Fed is creating another housing bubble by keeping rates this low. We’ve all seen it in the prices. Sell now before the rates rise and no one can afford to buy any of this real estate.
For the same monthly payment, you can basically buy a property that is nearly double the cost of what you could buy in 2001. Think about that for a minute. So what will happen when rates rise? I sure hope those salaries start rising 10% a year because if they don’t this housing market is going to go “pop” in a big way.
Sell now investors!
Yes- I’m still renting. My landlord hasn’t raised my rent in 3 years. I’m paying WELL below market rate. By hundreds of dollars a month. They love me and don’t want to lose me as a tenant. If I were to move, however, it wouldn’t make sense to rent. I’ve always said I would buy when it was cheaper than to rent. And it’s way cheaper now.
newsflash, rates aren’t rising significantly for a decade at least
“Not everyone is leaving the state.”
Where did that come from?
I said that a decent number of the people who are selling in North Center are leaving the state, not simply moving to the burbs. A move to the burbs is an indication (but hardly definitive) that CPS is an issue. A move out of state is much less so.
“250 dollars a square foot in rent”
Hope you meant to have a decimal point in there.
“in the market for single family homes in the 1.2-1.5 range in lakeview (real lakeview)”
Ahahahahahahahaha. Especially with an (implied) objection to “cookie cutter” finishes.
is it just me or is Riz on the market for new housing every week? Or maybe he knocked up his wife recently… lol
“I don’t see the oversupply in the “reasonable” luxury sector. I’ve been in the market for single family homes in the 1.2-1.5 range in lakeview ( real lakeview, not “west lakeview” ) and the pickings are very slim. I’m not a huge fan of north center or roscoe village and don’t want to be on the west side far from the lake.”
It’s all about compromise, right? There is a 7.2 month supply of homes in that price range in Lake View right now but most of it is west of Ashland.
“west of Ashland”
That’s “west lake view”, and thus excluded. It would have to be below the range, or really nice to get considered, and (without looking) I’m guessing that there are maybe one or two that fit either of those criteria.
“Mortgage rates are near all time lows. They weren’t in 2012.”
Yet again, you are wrong.
here’s a chart of historical 30-year mortgage interest rates:
https://fred.stlouisfed.org/series/MORTG
Are rates meaningfully lower today than in 2012? I dunno. You decide.
“Mortgage rates are near all time lows. They weren’t in 2012.”
Sigh…
http://money.cnn.com/2012/10/04/real_estate/mortgage-rates-record/
“Sorry Riz. You’re priced out. SFHs in East Lakeview don’t sell for that low anymore. The same way you’re benefitting from the increase in price on your condo, you’ll pay when you buy the SFH so it’s really all a wash for you.”
Sad but true. Hoping to sell condo now and hold for a good deal on a SFH but as you can tell, that hasn’t happened.
“is it just me or is Riz on the market for new housing every week? Or maybe he knocked up his wife recently… lol”
Just been looking for months! Been close to pulling the trigger a few times but not yet. Trying to keep it under 1.5 for a SFH in green zone. At this point , am figuring out I’m going to have to either :
A) increase budget 10-20 % . Not keen on spending 1.7 – 2 million and having a million dollar mortgage though.
B) buy a slightly older , less “hip” SFH and update over time ( seen a few of these in east lakeview )
C) give up and buy a cookie cutter McMansion for 1 mil in Naperville, while telling myself I’ll take the train into the city on weekends for date night.
Leaning towards option A at this time. My south East Indian genes are screaming at me for option C.
Naperville is West of Ashland.
“Yes. This is right. You can actually buy the same property for about 60% of what it would cost to rent it out (thanks to the record low mortgage rates.) But you have to come up with the down payment, which appears to be a sticking point for many people.”
Please show me where this is true. I have my checkbook ready.
“Trying to keep it under 1.5 for a SFH in green zone.”
In a fairly small slice of the GZ.
“It’s all about compromise, right? There is a 7.2 month supply of homes in that price range in Lake View right now but most of it is west of Ashland”
I understand that. My wife really loved this home just south of Ashland, but the location just felt so…..not great. Maybe I need to reset expectations a bit.
https://www.urbanrealestate.com/property/3531-N-Hermitage-CHICAGO-IL-60657-W6DXYVKXYNRC6.html
If this property was about 200k less It would make sense to me. Really liked it. (minus all the excess indirect lighting)
https://www.urbanrealestate.com/property/1321-W-Wolfram-CHICAGO-IL-60657-DZQFL3U6JSPNG.html
* west of Ashland **
“but the location just felt so…..not great.”
Yeah, that’s an important consideration. You have to feel good about where you are going to live. I just wouldn’t dismiss everything West of Ashland in Lake View. The income demographic is generally very high and I don’t like to make claims about crime but the data is out there for you to look at.
“3531-N-Hermitage”
That house is all over the place. There might be 2 dozen of them in North Center by now.
Here’s the same house, two block east:
https://www.urbanrealestate.com/property/3522-N-Marshfield-CHICAGO-IL-60657-HJ6ZE3BD4JXG2.html
I think that location is slightly wore, with proximity to the school.
Good observation anon.
I think a lot of the “higher end” interiors in these new constructions tend to follow the same look. That’s why I liked the wolfram place so much.
Regardless, if you’re someone who doesn’t care about living around a few dozen copies of your house, I think it’s nice enough looking for the price.
“1321-W-Wolfram”
Looks like they already dropped it $100k.
They paid $700k for the teardown, and appear to have spent in the neighborhood of $650k on construction. With the carry and transaction costs, $1.6 seems pretty unlikely.
“doesn’t care about living around a few dozen copies of your house”
They do mix them up a bit–different colors, different porch roofs, mix up the stone a bit, but the themes the same.
Here’s a version on a 30′ lot:
https://www.redfin.com/IL/Chicago/3933-N-Seeley-Ave-60618/home/13389282
“Yet again, you are wrong.”
Here’s Chuk once again not talking about real estate. He never comments on the properties here. It’s always about him being right and me being wrong.
What IS it with you Chuk? Some woman wrong you in high school or college? Never get over it? Did she outscore you on some exam? Did she take your dream job away because she was a better candidate?
I just don’t understand the endless hate you have. It’s not as bad as Dan (how could it be?) but you run a close second in bitterness.
When are you going to stop and just enjoy real estate? When Chuk?
It’s so tiring.
“newsflash, rates aren’t rising significantly for a decade at least”
Okay. I hope you’re right or we’re all screwed in the next few years.
Or- I should say- anyone who wants to sell and move is screwed. And heaven help those on the coasts.
And I hope you’re playing that trade.
“When are you going to stop and just enjoy real estate? When Chuk?”
Huh? I am. Once again, I have given more valuable information than you. You said something that was completely incorrect. I provided the accurate information.
“I just don’t understand the endless hate you have.”
What hate?
“Or- I should say- anyone who wants to sell and move is screwed”
I’m so confused. You are always saying how everyone is foolish for not buying now. Now you are saying it is a mistake?
“Once again, I have given more valuable information than you.”
Really? You’re posting properties on this site now?
Come now.
You need to get some help Chuk. Your definition of “valuable information” is simply saying “Sabrina you are wrong.”
While I love being the center of attention, really, the focus is on the properties and not on me.
I continue to believe the same philosophy that I have believed from the day I started this blog.
If you have a long term horizon, say 10 years, then buying makes sense. You need to be able to ride out any volatility (and boy have we seen it.)
And now a second bubble is forming in real estate. Who knows when it will burst or how bad it will get before it does so. The first one kept building and building while everyone was in denial. I’m assuming the second one will do something similar- so we have a ways to go before anything happens.
Meanwhile, prices keep soaring because inventory is low and mortgage rates are low. In the monthly payment nation we live in, all that matters is the monthly payment, not the overall price. And that monthly payment is being kept artificially low by the Fed.
Heaven help us all when it goes the other way. And when the bond bubble bursts.
“And by the way, I’ve never called anyone “foolish” for not buying now.”
Everyone has their own priorities and financial issues to deal with. For some people, renting makes sense especially if they’re going to be moving shortly or changing jobs etc. For others, they want to be in one property for the next 20 years so it makes more sense to buy.
Everyone needs to figure out what makes sense for their own situation.