Forget the 2003 Price, Now It’s Under the 2001 Price: 3515 N. Lakewood in Lakeview
We last chattered about this 2-bedroom at 3515 N. Lakewood in the Southport neighborhood of Lakeview a year ago- in September 2010.
See our prior chatter here.
At that time, it was listed $11,000 under the 2003 purchase price at $270,000.
One of you thought it would sell closer to $225,000.
In the last year, it has been reduced again and is now listed not only under the 2003 price but also $22,100 under the 2001 price at $229,900.
If you recall, it has central air but no in-unit washer/dryer or parking.
The kitchen has white cabinets and appliances.
Given what we’ve seen other 2/1s sell for in Lakeview with more of the features buyers are looking for, how low will this go?
Steven Samuels at Bear Kaufman Realty now has the listing. See the pictures here.
Unit #2: 2 bedrooms, 1 bath, no square footage listed
- Sold in March 1994 for $129,500
- Sold in February 1995 for $136,000
- Sold in September 2001 for $252,000
- Sold in July 2003 for $281,000
- Originally listed in August 2009 for $306,000
- Reduced several times
- Was listed in February 2010 for $299,925
- Reduced
- Was listed in September 2010 for $270,000
- Reduced
- Currently listed at $229,900
- Assessments of $257 a month
- Taxes of $3900
- Central Air
- No in-unit washer/dryer
- No parking
- Bedroom #1: 12×12
- Bedroom #2:13×9
2/1’s have been slammed the most this bust.
Let’s play the Price is Right! What a stupid, out-of-touch pricing strategy here. To even think that this would sell for over $300K indicates a delusional seller and an agent that doesn’t know a thing about real estate.
Newsflash: People aren’t buying rental units any more. Especially dumpy ones like this where you still get to live the rental dream of sharing a bathroom with your guests, circling the block for parking, and breaking your hands carrying your clothes to the laundromat.
Jon has got it right.
I’ll gladly pay $850 a month for that!
“Newsflash: People aren’t buying rental units any more. Especially dumpy ones like this where you still get to live the rental dream of sharing a bathroom with your guests, circling the block for parking, and breaking your hands carrying your clothes to the laundromat.”
No doubt, there is no reason for buildings like this to be condos. This place is a plain jane apartment.
The 1995-2001 price appreciation was bubbleicious. This needs to break below $200k to be a “deal”.
This does look better than a lot of neighborhood rentals that I see going for $1300-$1400.
I don’t see the appeal of this type of building as condos.
These units were converted in the mid 90s. A lot of the lower priced condo conversions back them didn’t have the trinity of amenities that buyers expect today – parking, central air, in unit w/d. You will notice that a large number of pre-1999 conversions lack these features (particularly the central air and w/d).
While this unit has central air, the lack of parking and w/d are really what is hurting it.
Dumpy, featureless, rental-grade box.
Remember, when you figure “rental parity” for this, you must deduct the monthly taxes and assessments to arrive at your true rent- what you have to cover the mortgage and repairs, and give you a profit.
The taxes are $330 approximately and the maintenance (probably includes heat) is $257. Insurance will probably be $800 a year, about 30 a month. So, to make it easy, just lop $600 a month off the street rent of about $1500 a month this place would fetch, for a true rent of $900.
Multiplied by 160, that is about $144K to be rent parity, slightly higher than the 1995 price. Since the country’s incomes are at 1997 levels, that would be about right. And speak not to me of how well the top 1% is doing and that there are still plenty of people making millions, because that 1% won’t be living in a dump like this and are irrelevant in any discussion of middle and lower tier real estate prices.
You guys are rough, calling this place a dump. However, I agree with what has been said. Escpecially about this place being converted into a condo, it should have stayed rental….
“Remember, when you figure “rental parity”
Real estate folks have formulas and names for “rental parity”. Forumulas such as Captiatalion Rate, Gross Rent Multiplier.
“Real estate folks have formulas and names for “rental parity”. Forumulas such as Captiatalion Rate, Gross Rent Multiplier.”
Just kill me!
“Just kill me!”
Second! All in favor [aye!], Opposed? […].
Motion carried.
“Real estate folks have formulas and names for “rental parity”.”
But you have to realize…ahhhhh, forget it.
I’m trying to figure out if this was originally a one bedroom with dining room or just had a dining nook.
Re: laundry, if it’s allowed, you could save huge money by buying low and putting in your own machine later.
Second! All in favor [aye!], Opposed? […].
Motion carried.
A kind soul.. had Lots daughter only found you.
Jon:
Great comment. LOL!
Russ,
Maybe I was ahead of my time, but as a young adult buying a condo in the mid-90s, I indeed expected central air, parking, exercise room, and other amenities. That’s why my wife and I, back then, bought in a full-service LP high rise rather than a crummy place like this.
Laura,
I agree with your research that $144,000 sounds right for this place. That does remind me of the prices for 2/1 condos in 1995/96 when my wife and I were looking (and we ended up with a 2/2 in an LP high rise for $205K).
The listing fails to mention that this place is just steps from the Laundromat as well!
Laundromat got turned into a salon awhile ago
This is still a pretty good neighborhood and area. It’s only one block east of Southport. I don’t see it dropping below $200K. There’s too many people who would snap it up in this area right away if it were lower than that.
G, do you have any volume stats by neighborhood? I’d be curious to see Lakeview’s condo sales stats by month compared to last year.
@Dan#2, no doubt, I expected it too. I just noticed it because I was looking at buying a place in the late 90s and all the vintage units from the mid 90s pretty much were 2/1s similar to this place. It wasn’t until the late 90s and early 2000s that you started seeing
vintage conversions where the developer would add new plumbing, extra bath, w/d, new floors, etc. Full rehabs.
The pre-2000 vintage conversions are basically functionally outdated as condos. I can’t see them ever selling above parity to rental grade units. Most people when they buy usually want to be buy a nicer place than they can rent.
previous chatter, wow what a gem that was
as for this place they will be fortunate to sell this place for 200k
“…circling the block for parking…”
But I thought that the “city experience” was about not driving anywhere? Funny to hear these posters bash the outer city and burbs since “you have to drive everywhere”, but then expext parking to be ‘free’ near the lake
“G, do you have any volume stats by neighborhood? I’d be curious to see Lakeview’s condo sales stats by month compared to last year.”
Dave, I post them in the prior month’s Market Conditions thread. Click on Market Conditions category to the right and go to the July thread for Aug data you seek.
HOW MUCH DID EVERYONE LOSE IN THE STOCK MARKET TODAY? I BET IT WAS A LOT MORE THAN ANYONE LOST IN REAL ESTATE IN THE PAST YEAR!!!!
Tomm,
Good point. There is some disjointed thinking there. Most people need a car, like it or not. In our case, we had my wife’s family in the suburbs, and frequently had family events to get to. Taking the train every time just wasn’t an option.
Too bad that Laundromat on Southport closed. It was a nice one, as far as Laundromats go. At least that’s what I thought back in 1993/94, when I used to go there once in a while.
Clio,
I have no interest in finding out how much I lost in the market today. I’m sure it’s a lot. But it’s too depressing to contemplate. I’m thinking it’s time to reduce exposure, because this market is just not able to climb and maintain gains after it reaches 1,200 (S&P).
When Clio capitulates and dumps his stocks I’ll know it’s time to buy. Doctors are the worst market timers.
SoPoCo
I am buying stock and selling real estate….(how’s that for reverse psychology).
The danger of the stock market is the fact that you CAN sell so easily. People are easily spooked and have no staying power. I bet people actually will lose WAAAAY more money in the stock market than they do in real estate (simply because they can’t sell their homes – and, by staying put, they are actually helping themselves by riding out the market storm).
Sabrina strikes again!
http://cribchatter.com/?p=11427#comment-186160
“I LOVE this conversation. You guys are SO bearish it makes me want to buy more stocks right now. It is an incredibly bullish sign. I feel like it is 1979 and we’re about to get the businessweek announcing the death of stocks. What a time to be an investor! It’s so fantastic.
Conversely- there are plenty of people on this blog who believe that now is the time to buy housing. Plenty of housing bulls. Heck, HD and G are attacked relentlessly because they’re housing bears.
I love it! So bullish for stocks.”
I LOVE this conversation. You and Bob are my “indicators.””
After top ticking the market in May, she outdoes herself and does it again! And she has the nerve to call Bob and I contrarian indicators?
Her stocks down 7% from this quote a week ago, and she has the nerve to criticize clio for losing 7% on his property in 2 years? Unbelievable.
chuk – couldn’t have said it better.
“previous chatter, wow what a gem that was”
ahaha. thanks for mentioning it. MikeHG’s attempt to categorize McMansion as racially derogatory towards micks. good stuff
“But I thought that the “city experience” was about not driving anywhere?”
No dummy, it’s about not HAVING to drive anywhere. Not having a car/parking spot is generally part of the “being too poor to afford one experience.”
If you don’t plan to move in the next 5 years or more, this is probably one of the best opportunities to buy in a life time.
Now that Vlajos, is one of the stupidest things I’ve ever heard.
http://news.medill.northwestern.edu/chicago/news.aspx?id=187007
“In fact, Illinois has the third-largest shadow inventory in the nation, following Florida and California, with 121,266 properties waiting to be sold, according to the National Association of Realtors in a March report.
Standard & Poor’s Corp. estimated that at the end of the first quarter, Chicago had a 65-month supply of such homes, meaning it would take more than five years to clear the shadow inventory. That compares with an average 52-month supply for the entire U.S. ”
“Vlajos on September 22nd, 2011 at 1:27 pm
If you don’t plan to move in the next 5 years or more, this is probably one of the best opportunities to buy in a life time.”
“No dummy, it’s about not HAVING to drive anywhere…”
But then what’s with all the yuppies demanding parking, clogging the downtown streets in SUV’s, or taking cabs all over the effin place? And, all the big box stores on Clybourn av?
I’m no dummy, I know more about the city than the transplanted yuppies who’ve only lived here for a few years. And never go past ‘comfort zone’. So only mingling with people exactly like you makes you “smarter”?
“But then what’s with all the yuppies demanding parking, clogging the downtown streets in SUV’s, or taking cabs all over the effin place? And, all the big box stores on Clybourn av?
I’m no dummy…”
Really, you just proved my point if you think that taking a cab constitutes driving (in the way that we are talking about it). Cabbing is an alternative to driving. But that is probably semantics to you. You make no sense. Go catch your bus.
The 6% fall or so in the markets the last 2 days is less than the decline in real estate over the last year, far less if you factor for leverage. The shorts made out like bandits (and anyone can short now because of etfs like SH).
The Fed can’t do another QEIII to boost asset prices because it would only boost inflation and will have no affect on employment. Ron Paul is scaring the shit out of Washington because people are listening and understanding why the economy is so bad. Any more giveaways to the banks and Obama loses in 2012 and Bernanke gets indicted by Ron Paul’s administration.
This place isn’t as bad as you guys say but it does seem overpriced given the finishes and size.
“After top ticking the market in May, she outdoes herself and does it again! And she has the nerve to call Bob and I contrarian indicators?”
Chuk- why don’t you bother to link to the part where I say we’re going to have a big sell off and then finally hit a bottom where people REALLY hate stocks? Because that’s what I said. We’re not there yet- but we’re getting closer every day (because you and Bob ARE my indicators.)
I once thought we’d be in a bear market for maybe 20 years. But we’re about to go into year 12 and it seems maybe we’ll see a turn at only like 14 or 15 years. But we shall see.
But I LOVE it. You hate stocks so much. It’s SO bullish. I am buying all the way down. I dollar cost average every month. There are so many juicy bargains right now I don’t know what to do. The dividends are huge. I can easily make 5% all the way up to 10%. You know how quickly I can double my money making 10% a year? I’m like a kid in the candy store.
It’s fantastic. Keep being bearish Chuk. Keep attacking me for buying stocks. That’s what I want to see. I love it.
Oh- conversely- keep attacking HD for NOT buying a house. That’s very bearish for real estate. People on this blog are still calling those who don’t own losers. That means we haven’t hit the bottom yet. We’re not even close. At the bottom no one wants to own (kind of like Chuk’s, Bob’s and Clio’s views on stocks.)
Maybe you should just stick to asking your 90 year old grandmother about her horse and buggy stocks. You are going to learn the hard way.
I always say, when the market is down, buy something else! So I bought a new car today. whoo hoo!
“Maybe you should just stick to asking your 90 year old grandmother about her horse and buggy stocks. You are going to learn the hard way.”
Ohhhh…I’m so scared. And so is she.
NOT!
She lives quite well off her stocks- thank you very much. It’s the American Dream. And it’s accessible to ANYONE who save a little bit of money every month. Long live America for giving us these amazing opportunities to easily invest in the greatest companies in the world.
Upside on the S&P is 1200, downside is easily 1000 in the short term. It is very dangerous to ownstocks now. Europe could collapse over the weekend.
I want to put my short back on but I’m hoping for a dead cat bounce before I do.