Foreclosures Creep into Chicago’s North Side
Foreclosures have been rampant on the south side of Chicago for the past few months. They’ve also taken off in several downtown high rises. But in recent weeks, there has been a slow creep of more listings on the north side, specifically Lincoln Park and Lakeview.
I wouldn’t call it a deluge. But it’s happening.
Such is the case with this condo loft unit at 1735 W. Diversey Parkway (is this in Lincoln Park, Roscoe Village, Lakeview? It’s on the border of several neighborhoods.) It went to foreclosure auction this week.
Unit #608: 2 bedrooms, 2 baths
- Penthouse unit
- Sold in October 2000 for $206,500
- Sold in May 2003 for $314,900
- Auction price of $504,725
I don’t have any pictures of Unit #608, but Unit #615, a 3 bedroom, 2 bath is currently on the market for $515,900 and just had a $15,000 price reduction. It is 1715 square feet.
It appears that all the units on the 6th floor have a long wrap-around deck like these two:
Koenig & Strey has the listing for Unit #615, which is currently on the market. It’s also available for rent for $3,000 a month.
This thing auctioned for $505,000?!?! That’s nearly 2.5 times what it SOLD for just seven years ago. I think the winning bidder got made a huge blunder. This place wouldn’t sell for that in this market especially considering what the 3/2 is listed at.
I might not be making it clear about the auction price on these foreclosures. The $505,000 was simply the auction price, but it may or may not have sold at auction. Some of the properties sell and others revert back to the bank. It depends, as well, on the number of loans on the property and the outstanding equity (if any) available to a buyer.
Many times the auction price is higher than what the property could actually sell for (i.e. no equity and prices have fallen in that neighborhood or building) which means the property will revert back to the bank.
Given, as you said, that the bigger 3/2 is listed at $515,000 and hasn’t sold, I’m assuming no buyer bought this unit at auction and it will come back on the MLS as bank-owned at a much lower price.
We’ll see.
Ahh, I see. Sorry about the misunderstanding.
If you adjust for inflation (which is approx the rate that housing appreciates historically) based off the 2000 sales price this should be listed at $250,500.
Yes- even in Chicago prices have gone up way too fast. Prices will decline, it’s a question of how much.
A lot depends on how difficult it becomes to get a loan.