East Lincoln Park 3-Bedroom Sells for 25% Under the 2002 Price: 2341 N. Commonwealth
We last chattered about this short sale 3-bedroom at 2341 N. Commonwealth in Lincoln Park in May 2011.
See our prior chatter here.
Back then, it was priced 20% below the 2002 price at $329,900. But some of you thought it was a bait and switch of some kind and that there was no way the bank would accept a price that low.
4 months later, the unit finally sold for 25% under the 2002 price at $305,000.
If you’ll recall, the big issue with this unit is that it didn’t have any of the features most buyers look for- including central air, washer/dryer in the unit OR parking.
BUT- it did have its tremendous east Lincoln Park location and many vintage features including crown molding, french doors and big room sizes.
The kitchen had also been updated with 42 inch maple cabinets, granite counter tops and stainless steel appliances.
Did someone get a steal for the neighborhood?
Violet Sudler at Coldwell Banker had the listing. You can still see the interior pictures here.
Unit #2B: 3 bedrooms, 2 baths, no square footage listed
- Sold in December 1995 for $205,000
- Sold in January 2002 for $408,000
- Originally listed in October 2009 for $524,900
- Reduced numerous times
- Lis pendens foreclosure filed in February 2011
- Re-listed as a “short sale” in March 2011 for $349,000
- Reduced
- Was listed in May 2011 at $329,900
- Sold in September 2011 for $305,000
- Assessments of $533 a month (includes heat, cable)
- Taxes of $5934
- No central air
- No in-unit washer/dryer
- No parking
- Bedroom #1: 14×14
- Bedroom #2: 15×8
- Bedroom #3: 10×7
AN ABSOLUTE STEAL!! – Holy crap. This unit is going to be worth around 500k in 7-10 years – no doubt about it.
If they’d listed this at $429 in ’09, they prolly would have gotten something close to $00, no? Probelme was the $392k mtg from Dec-07.
80/10/10 at purchase, then a ton of re-fis.
There are incredible deals out there for patient people. Short sales are a pain, and most people are on a strict schedule and do not want an as-is clause in the contract. If you can stick it out with the banks sluggish responses and deal with the potential issues of an as-is home you can score a deal. But putting a price on time and effort on any deal won’t show in the final numbers.
“Assessments of $533 a month (includes heat, cable)
Taxes of $5934
No central air
No in-unit washer/dryer
No parking
Bedroom #2: 15×8
Bedroom #3: 10×7”
lets see
no, no, no, no, no, no, no!
nope not much of a deal IMO
“Did someone get a steal for the neighborhood?”
Yes. Heck, I thought it was at $329k:
“‘Is this a steal at this price?’ Yes.
I really feel for the sellers. I also question the wisdom (the broker’s wisdom?) of putting a place on the market in 2009 – in October, no less – at a price of $525k, despite the fact that the majority of would-be 3 bedroom/Lincoln attendance area buyers want a parking space and a w/d (many will rough it with window a/c, but the parking and w/d are killers). When these sellers purchased this place in 02? for $408, I doubt they had kids (without whom a w/d, and even parking, aren’t necessarily deal killers). I realize they put a bit into the place, it just seems that there was a real misjudgment of the market/comps in the fall of 09 (and after 7 years they should have made a good dent in the principal, but perhaps they borrowed in order to make renovations).
That said, assuming that the bank will actually close for around the listed price, it really is a lot of charming space on a quiet block just around the corner from the park. Even factoring in an extra $200 or so to rent a parking space (which I think is about a block away), it seems like a solid value.”
“There are incredible deals out there for patient people.”
Only to be topped by more deals tomorrow. The lis pendens surge began 2 years ago in LP & LV and this part of the shadow inventory has yet to be disposed of through short sale/REO closings. They should do wonders for any supposedly tight rental market, too.
I am really surprised that this beautiful, huge unit sold so low. It has everything- great condition, tasteful upgrades, beautiful architecture and details, a lot of space. I didn’t think a 3-2 in LP could ever be had for less than $400K, especially one this desirable.
However, I respectfully differ with clio on where the price of this unit and other real estate will be in 7-10 years.
I don’t believe real estate will appreciate much at all, if at all. I believe that we are in a severe global economic contraction that is directly related to the depletion of liquid fuels and other essential resources that will leave the G20 countries much poorer than we all thought we were. I would not buy any property with the idea that you’re going to be able to “make money” through asset inflation, known as “appreciation”, as we could for the past 30 years
You see, for the past 30 years, since we ceased to be a manufacturing economy circa 1980, we have driven “growth” by debt creation and asset inflation. Incomes have stagnated since that time and in the past decade they have dropped, while personal debt loads have increased greatly. How long can THAT work? We will be working down the pile of private and public debt for the next 20 years, and it the meantime, it looks like the whole economy is “resetting” to a lower level.
“However, I respectfully differ with clio on where the price of this unit and other real estate will be in 7-10 years.”
Laura, what is weird is that most people’s opinions are based on their own lives and the lives of their neighbors/co-workers. Where you stand, you may be pessimistic. Where I live/work, people are stockpiling cash – building in Hinsdale, elmhurst, oak brook is BOOMING!! Seriously, just drive around hinsdale and look at the 2-4 million dollar houses being built. Is this typical? Of course not – but neither is the blight and doom/gloom of rogers park/englewood, etc. The point is that things will stabilize and will not be as bad as it is now (but likely not as good as it was in 2005).
“We will be working down the pile of private and public debt for the next 20 years”
I agree.
Welcome to Japan 1991. Well, actually more like 1994 since 2008 was more like 91.
“the big issue with this unit is that it didn’t have any of the features most buyers look for- including central air, washer/dryer in the unit OR parking.”
The sales price seems generous to me given these shortcomings. And, it’s a middle unit (2nd floor) in what looks to be a courtyard apartment building. Waaaaaaay too many neighbors for my taste.
““We will be working down the pile of private and public debt for the next 20 years””
Do you guys have ANY idea how much cash companies/banks/individuals are stockpiling? Good Lord – if you guys had ANY clue, you would realize that businesses/rich individuals are even LESS leveraged now than they were in boom times. All that crap back then was a facade – things are MUCH stronger now.
“Do you guys have ANY idea how much cash companies/banks/individuals are stockpiling?”
Do you have ANY idea how much is owed?
Question: What do you think is bigger? The amount of cash “stockpiled” or the amount of cash owed?
chukdotcom – there will ALWAYS be more cash owed – ALWAYS. But the ratios are decreasing. Lay people don’t understand the economy or how the world works – it is VERY different than how normal people run their personal lives/households. Smart people make money when lending increases. Want to see another boom? Loosen lending standards/rules across the board and you will see a frickin instantaneous boom in the economy.
“Loosen lending standards/rules across the board and you will see a frickin instantaneous boom in the economy.”
Sure. And give a goldfish an entire container of food and he will eat till he dies. Doesn’t make it a good idea.
Is this a deal, or is this the new normal?
I’m going with new normal. In fact, I’m going with G and betting that prices keep coming down. Sure, the top .3% of the population is raking in cash right now, but that won’t last. Those folks are going to be rapidly bled out by the top .01%. Case in point: what kind of person sitting on tons of cash would buy a $4 million house in Hinsdale right now? Ans: A greater fool.
The global contraction is directly correlated to the contraction of ridiculously easy credit. The game is over for all but the most intelligent, and liquid ballers, which like I said, is comprised of the top .01% of the population.
Coming soon: contraction of easy credit for education. What’s that going to do to the economy? Keep buying those big homes in Hinsdale. LOL.
wow what sensible posters.
@Clio: the ratios you speak of are NOT decreasing – corp debt is at an all-time high. the problem is that there are not any productive places to put the cash (funded by debt) on the balance sheets to work. Balance Sheet Recession. 10+ years minimum.
“Where I live/work, people are stockpiling cash – building in Hinsdale, elmhurst, oak brook is BOOMING!! Seriously, just drive around hinsdale and look at the 2-4 million dollar houses being built.”
clio, perhaps you can fill us in on the 2011 numbers? I don’t believe they will show what you claim. Here’s some history:
Single-family new house construction building permits:
Hinsdale
• 1996: 59 buildings, average cost: $373,100
• 1997: 73 buildings, average cost: $343,100
• 1998: 118 buildings, average cost: $370,200
• 1999: 113 buildings, average cost: $379,500
• 2000: 95 buildings, average cost: $419,600
• 2001: 105 buildings, average cost: $492,400
• 2002: 107 buildings, average cost: $530,200
• 2003: 90 buildings, average cost: $575,200
• 2004: 109 buildings, average cost: $563,800
• 2005: 116 buildings, average cost: $669,900
• 2006: 80 buildings, average cost: $815,800
• 2007: 43 buildings, average cost: $771,900
• 2008: 21 buildings, average cost: $907,200
• 2009: 18 buildings, average cost: $814,200
• 2010: 33 buildings, average cost: $874,600
Oak Brook
• 1996: 22 buildings, average cost: $638,000
• 1997: 22 buildings, average cost: $498,900
• 1998: 31 buildings, average cost: $667,900
• 1999: 31 buildings, average cost: $640,600
• 2000: 37 buildings, average cost: $749,600
• 2001: 33 buildings, average cost: $797,900
• 2002: 32 buildings, average cost: $519,400
• 2003: 34 buildings, average cost: $576,700
• 2004: 33 buildings, average cost: $564,600
• 2005: 32 buildings, average cost: $567,200
• 2006: 12 buildings, average cost: $1,090,400
• 2007: 17 buildings, average cost: $1,231,400
• 2008: 9 buildings, average cost: $1,078,900
• 2009: 13 buildings, average cost: $1,198,500
• 2010: 8 buildings, average cost: $1,359,600
Elmhurst
• 1996: 59 buildings, average cost: $186,600
• 1997: 84 buildings, average cost: $154,800
• 1998: 198 buildings, average cost: $118,800
• 1999: 254 buildings, average cost: $86,100
• 2000: 152 buildings, average cost: $248,700
• 2001: 174 buildings, average cost: $242,400
• 2002: 458 buildings, average cost: $79,000
• 2003: 234 buildings, average cost: $276,200
• 2004: 305 buildings, average cost: $273,200
• 2005: 212 buildings, average cost: $352,900
• 2006: 262 buildings, average cost: $202,200
• 2007: 108 buildings, average cost: $452,700
• 2008: 64 buildings, average cost: $393,700
• 2009: 38 buildings, average cost: $447,600
• 2010: 46 buildings, average cost: $426,700
‘of the top .01 percent’
well nice to know all of us here are safe.. Btw… If i were a nice guy i woulda videotaped for y’all, what i just watched kickin around a soccer ball in her thong bikini.
“Coming soon: contraction of easy credit for education. What’s that going to do to the economy?”
This can’t happen soon enough IMO.
I’m pretty sure that consumer debt is lower than it has been since 2003.
This place is decent, but has none of the amenities most buyers wold want and the bedrooms are dinky.
G – your numbers show that there is an increase in building in 2010 and there is an even bigger increase in 2011. What is your point?
We were interested in this place in June but could never get ahold of or hear back from the agent.
No outdoor space may have been a deal breaker though… no fireplace either:(
The old school realtors STILL talk about the builders in these suburbs. I went to four open houses a few weeks ago and TWO of the realtors kept saying “the builders used to pay $500 for these wide lots” etc.
THe days of the builders are OVER but these older realtors haven’t yet gotten the memo. It’s sad actually, very sad.
Park Ridge building permit info (from city data.com)
Single-family new house construction building permits:
1996: 61 buildings, average cost: $203,200
1997: 109 buildings, average cost: $194,200
1998: 86 buildings, average cost: $222,900
1999: 87 buildings, average cost: $248,500
2000: 68 buildings, average cost: $318,700
2001: 82 buildings, average cost: $321,800
2002: 63 buildings, average cost: $336,600
2003: 87 buildings, average cost: $383,800
2004: 97 buildings, average cost: $417,600
2005: 140 buildings, average cost: $435,900
2006: 100 buildings, average cost: $482,300
2007: 48 buildings, average cost: $507,400
2008: 44 buildings, average cost: $505,900
2009: 27 buildings, average cost: $425,100
2010: 8 buildings, average cost: $431,800
Read more: http://www.city-data.com/city/Park-Ridge-Illinois.html#ixzz1YW4tM6Ca
HD (and everyone else) – the best areas are the first to come back – look at oakbrook/hinsdale data and then tell me we haven’t hit the bottom….
“I’m pretty sure that consumer debt is lower than it has been since 2003.”
@JP$: you should question whomever is telling you that.
Total Household Debt is at 2007 levels, a good 40% over 2003 levels.
Corporate Debt never stopped growing and is 60% over 2003 levels.
Federal Debt is 300% 2003 levels.
But don’t tkae my word for it, the new Z.1 came out on Friday:
http://www.federalreserve.gov/releases/z1/Current/z1r-2.pdf
see Report D.3, third page (numbered pg9).
jswede, total household debt is different than consumer debt.
I also didnt say anything about Federal or Corporate debt levels… dude.
jswede, check this out:
http://www.reuters.com/article/2011/09/16/usa-economy-wealth-idUSS1E78F0XE20110916
Is consumer credit different than consumer debt? That’s on the report and it is at 2007 levels, much closer to the peak than to 2003 levels.
@JP$:
I mention corporate debt in regards to Clio’s statements above.
Consumer Credit Ouststanding is a part of Household Debt, and is also at 2007 levels. If anything, the numbers I quote above make yoru argument look better, as I include mortgage debt, which has declined.
Your link speaks of Household debt vs after-tax income, which is entirely different. With gov’t transfer payments now over 20% of income, that’s a dubious data point. Joe Carson makes money selling confidence – if he can sell confidence, he will get more AUM, and a higher bonus. Don’t listen to the sell-side is a good rule.
Dude.
Wow, I saw the first 3/4 of this post title and thought someone had already scooped up the place I saw this weekend. Guess not. Check out this ‘lil guy:
http://www.redfin.com/IL/Chicago/2336-N-Commonwealth-Ave-60614/unit-301/home/13349541
Obviously doesn’t have the cool vintage features and is in a depressing 4+1 instead of a courtyard (still no A/C or outdoor space). But it has a parking spot *included* at $339k and it says the building allows W/D.
People on this site have been harping that we will bottom out once purchase prices reach rental parity. Here we are in East Lincoln Park. Rents for $2,700, easy, maybe more given the parking. Find a place for that w/d and these three large bedrooms go for $3k/mo no problem.
Uhh, last I checked we’ve been below rental parity for a while. Like going on two years, now.
There’s no credit for old deadbeats who already mailed the keys in on their last place. There’s no tricking the millennials into getting tied to a depreciating asset when they want to change cities every three years.
Looks like the last refuge of scoundrels is peddling their garbage to greater fool “investors”. $3k a month for that dump, loolz. I can already picture the infomercials for “How to make money as a landlord in the green zone, now!”
Uh, not quite. only below rental parity on the handful of properties that actually sell, and there are only a handful. The rest of the properties are languishing. I looked at an open house two weeks ago. It’s having another open house this weekend. It’s already been on the market 500+ days. As if ANYTHING has changed in the last 3 weeks to warrant another open house, like there are NEW people trolling in the last two weeks (despite school starting a few weeks ago) that warrants another open house. Maybe the realtor literally has nothing better to do with her time, husband probably watching the bears games with friends and needs a reason to get out of the house. Hahahaa
“Chicagobull on September 20th, 2011 at 3:14 pm
Uhh, last I checked we’ve been below rental parity for a while. Like going on two years, now.”
The shadow inventory will affect those rental rates too, once it is released and “snapped up” by “investors.”
“Obviously doesn’t have the cool vintage features and is in a depressing 4+1 instead of a courtyard”
Depressing is putting it mildly…
“Uh, not quite. only below rental parity on the handful of properties that actually sell, and there are only a handful.”
Show your math.
‘The shadow inventory will affect those rental rates too, once it is released and “snapped up” by “investors.”’
That’s a fair point. It will be interesting to watch rental rates over the next few years. I can’t say for sure because MLS data is sketchy going back on rentals, but I would guess there were just as many condo-owners who gave up on selling and rented instead this year as there were in the past three years. Yet the run-up in prices continued.
Millennials, or the “echo boomers,” are almost as numerous as their parents were, and they are just now starting to move into the workforce in large numbers. This stage was stunted by the recession, but you can only live in your parent’s basement for so long. This could account for the push back against a broader pool of inventory we saw in the last two years.
Mike,
I like the unit in your link, and think it would easily rent for $2400, plus $150 for parking = $2550. Good find.
Courtesy of the 909 Wisconsin “you might also likes”, thought I’d seen one of them here before–
“http://www.redfin.com/IL/Chicago/2336-N-Commonwealth-Ave-60614/unit-301/home/13349541
… has a parking spot *included* at $339k and it says the building allows W/D. ”
Closed for $275k.