From Price Cuts in 2009 to $500,000 2/2s in 2016 at 659 W. Randolph in the West Loop
This 2-bedroom at R+D 659 at 659 W. Randolph in the West Loop just came on the market.
If you recall, this building completed construction in 2008 and therefore got caught in the grip of the Great Recession.
It was one of several new construction buildings that had to slash prices in order to sell units.
Here is a sample of some of the 2009 the reductions:
01 Tier: 2 bedrooms, 2 baths, 1147 square feet, Northeast facing
- Old Price: $459,000-$492,000
- New Price: $341,000-$367,000
- Parking included
- Assessments of $430 a month
Tier 05: 1 bedroom plus den, 2 baths, 988 square feet, North facing
- Old Price: $409,000-$421,000
- New Price: $293,000-$301,000
- Parking included
- Assesments of $370 a month
Tier 18: 1 bedroom, 1 bath, 840 square feet, South facing
- Old Price: $342,000-$369,000
- New Price: $254,000-$260,000
- Parking Included
- Assessments of $317 a month
Tier 20: 2 bedrooms, 2 baths, 1200 square feet, Southeast facing
- Old Price: $482,000-$500,000
- New Price: $357,000-$372,000
- Parking Included
- Assessments of $450 a month
Tier 11: 1 bedroom, 1 bath, 654 square feet, West facing
- Old Price: $273,000-$276,000
- New Price: $192,000-$194,000
- No Parking with these units- wait list for a spot
- Assessments of $244 a month
You can see our chatter on the price cuts here.
The unit that just came on the market is #620, a Southeast facing 2/2.
It has a split floor plan with exposed concrete ceilings.
The kitchen has modern cabinets, a tile backsplash, granite counter tops and stainless steel appliances.
The master bathroom is marble.
It has central air, washer/dryer in the unit and parking is available for $35,000.
If you buy the unit with the parking, it is asking $500,000.
As you can see from the prices above, as this is a 20 tier, that is equivalent to the old bubble pricing in this building.
Is the West Loop really that hot?
Tim Zielonka at Redfin has the listing. See the pictures here.
Unit #620: 2 bedrooms, 2 baths, no square footage listed
- I couldn’t find a prior sales price. It looks like it was bought in 2011 along with a bunch of other units by a corporate entity
- Currently asking $465,000 plus $35,000 for parking
- Assessments of $657 a month (includes heat, gas, cable, exercise room, exterior maintenance)
- Taxes of $4498
- The unit is currently leased through June 2016
- Central Air
- Washer/dryer in the unit
- Bedroom #1: 14×11
- Bedroom #2: 11×10
Whomever bought this is testing the waters.
This place looks really small for 1200sf.
Lived in PT 2 blocks away. This area sucks. It is not true west loop, and it is not loop, it is kinda on an island in-between. I would not want to live there – but that just me. You can find much better places .5 mile west. for $450K with parking (that’s what this place will sell for, IMHO).
Well, let’s look at some recent closings in the building. The first 2/2 I checked out was this one: http://lucidrealty.com/homes-for-sale/Chicago_Near_West_Side/condos_townhomes/659-W-Randolph-ST-unit-1701/
Previously sold for $499K back in March 2009 so it actually went down in value over the last few years. I’ll post another one a bit later.
I like the interior and the finishes, but what’s up with the orientation of the kitchen Island? It looks 90 degrees off and just kind of floating out there.
This 2/2 recently sold for $380K: http://lucidrealty.com/homes-for-sale/Chicago_Near_West_Side/condos_townhomes/659-W-Randolph-ST-unit-609/
Previous sale was for $333K back in March 2010 so that’s 14% appreciation from what was not the bottom.
There is no doubt that the West Loop is hot but that appreciation is about in line with the Case Shiller index for the same time period, which covers the entire area. In other words, the appreciation is not remarkable and “individual results may vary.”
I don’t get the appeal of the west loop but apparently others really want to live there, I’d be surprised if this sold for 500k or even 475k but crazier shit has happened
The unit above this, #720, is contingent for 500k including parking. I’d have to guess that this will sell right around that as well.
I wonder if Cribchatter web traffic is turning this listing into “Hot Home” in Redfin. Seems a bit overpriced for the location and the fact that it’s only a 2 bedroom.
“This 2/2 recently sold for $380K:”
I clicked on the link thinking you had at least provided a comp from 2016 as you said “recently sold.” But no- this is from July 2015 which means it came on the market much earlier than that. So almost a year old comp.
The 2016 market is not the 2015 market. Not even close.
It’s a shame that seller didn’t wait even 9 months because they would have gotten much more.
“Previously sold for $499K back in March 2009 so it actually went down in value over the last few years. I’ll post another one a bit later.”
The March 2009 price was before they cut the prices. That IS the bubble price of 2007-2008 when they were marketing the building in pre-construction.
So it sells in August 2015 for $485,000 and you’re saying it “went down in value over the last few years”????
Um…no. Like #620 in this post, that unit also sold for peak bubble price.
It’s an incredibly hot market right now with prices soaring. As I’ve said before- the days of the $400,000 2/2 in the GreenZone are long gone. You will now pay $500,000 for that same 1200 square foot 2/2.
Forget about the bubble pricing of 8 years ago. Chicago is well past that now.
“As I’ve said before- the days of the $400,000 2/2 in the GreenZone are long gone. You will now pay $500,000 for that same 1200 square foot 2/2.”
We’ve discussed this before. There are plenty of 2/2’s selling in Lake View for instance at or below $400K. In fact, I’m about to list one in a day or two. Of course, they were built in the early 2000s with the finishes of that time.
they city of chicago knows who to bilk for RE taxes: dinks who pay $500,000 for 1,200 sq ft condos along the lake. Karen Lewis knows this, Rahm knows this, Forrest knows this. someone has to pay those teachers. CPS ain’t broke it just needs to raise taxes. Karen lives, breathes and eats this. she couldn’t give two $hits about the long term health of the city. to her it’s just gimme. gimme, gimme.
“Like #620 in this post, that unit also sold for peak bubble price…
Forget about the bubble pricing of 8 years ago. Chicago is well past that now.”
That unit sold below peak bubble price so that would not qualify as “well past bubble prices”
I agree the area sucks. Not the loop or the west loop. Of course, I would not live in the loop or west loop either.
Gonefishin “Of course, I would not live in the loop or west loop either.”
^ Comments like these help me target where I make my investments. Buy where your average dweller finds slightly unappealing, those areas always end up offering the best returns because that’s where developers are likely going to build.
Easy to lure in new buyers with the latest finishes and amenities, regardless of location. With new residential construction comes new retail establishments and more convenient livability, ultimately lifting everything in the surrounding area up in value.
“Easy to lure in new buyers with the latest finishes and amenities, regardless of location. With new residential construction comes new retail establishments and more convenient livability, ultimately lifting everything in the surrounding area up in value.”
therefore ENGLEWOOD!
Homedelete, exactly. Austin should also be on IDGAF’s radar. I wouldn’t live there either.
“With new residential construction comes new retail establishments…”
Didn’t work well for the New Eastside. Took years to get a grocery store.
“Didn’t work well for New Eastside. Took years to get a grocery store.’
Imo Mariano’s choice of location is an uncharacteristic epic fail – just try to get there. And Crain’s pointed out re Eastside it takes much more than a grocery store to make a neighborhood.
I disagree w/ Homedelete & Gonefishin who claim the area around 659 W Randolph sucks. Imo this area is much better today with more future demand & upside than the K2 ‘hood or New Eastside.
This area’s across Kennedy Xway from Randolph’s restaurant row portion of Fulton District. Residents have numerous exceptional restaurants & clubs within a block or two walk – I recommend Little Goat, City Winery (for music) & Avec! Residents can walk to work downtown, in Fulton District or reverse commute via nearby Ogilvie & Union stations. French Market, Mariano’s, Jewel, WF & Walmart are all nearby.
I know all this may pale compared to ‘livin’ the dream’ in Pk Ridge, Long Grove & Justice for you two but for rational decision makers this ‘hood’s urban gritty vibe & location will turn out great.
Southbound, oh I didn’t know there was a Walmart. I just put an offer on a place.
Gonefishin, you won’t be any further than you currently are from Kmart & Walmart in Justice or is it Bridgeview over dere by 79th & Harlem?
Southbound, you are a little treasure map where all the Walmarts are. Impressive.
“We’ve discussed this before. There are plenty of 2/2’s selling in Lake View for instance at or below $400K. In fact, I’m about to list one in a day or two. Of course, they were built in the early 2000s with the finishes of that time.”
No there are not. And if you’re listing under $400,000 even for something built in 2002, then you’re an idiot or it’s next to the Jewel in West Lakeview.
The “old” 2/2s in the 3-flat buildings, the middle units, are even listing over $400,000. If you’re a top floor unit, you’re at $500,000 now.
Party on everyone. Party on!
In the last 3 months 135 2/2s sold in Lake View. 85 of those sold at or below $400K. But, granted, some of those have $1000/ month assessments so let’s eliminate anything with an assessment above $600. That leaves us with 102 closings of which 54 are at or below $400K. $400k is clearly the median of 2/2s selling in Lake View. So I guess half the sellers are either idiots or next to the Jewel.
These are the facts.
gonefishin and Southbound need to get a room.
oilc and southbound need to get a room.
Whats wrong with the Jewel in Lakeview? You talking about the one on Ashland?
“Party on everyone. Party on!”
Doesn’t sound like much of a party to me: http://www.chicagobusiness.com/realestate/20160421/CRED0701/160429973/did-you-lose-money-on-your-home-sale-join-the-club
An example in Glenview is the best you have Gary? Really?
“Chicago-area homeowners who sold their properties in March lost an average of $6,250 from their original purchase price, according to a report from RealtyTrac.”
Yes- Chicago-area. Including those in Joliet, Orland Park, Crete, Olympia Fields, Lockport, Aurora, Lake Zurich. All those places most people are flocking to.
Gee- I wonder why they didn’t give any examples of someone losing $300,000 on a house in Lincoln Park since 2003? Because it isn’t happening.
The first rule of real estate always is: location, location, location.
Should we chatter about properties in the GreenZone selling for over the list price? I think we should so that you all can have your eyes opened about what is really going on in the housing market right now (as if you don’t know already- since you are reading this blog.)
But just in case some of you actually think this is a “normal” market somehow and not the hottest market in 10 years- I’ll post some examples of what is really going on out there.
It is smoking hot. Hotter than in 2013. And prices are soaring.
Now- granted- I’ve seen some really greedy prices lately. Who knows if they will actually get it. But nothing surprises me right now- especially if they can get an all cash buyer who doesn’t have to worry about a bank appraisal.
What don’t you understand?
The Fed has engineered this. They have engineered Bubble 2.0 by pushing mortgage rates to all time lows and keeping credit extremely easy. Remember the discussions we used to have like 5 years ago about how difficult the housing market would be because down payment requirements might revert back to 20% down?
Lol.
It’s almost laughable now.
You don’t have to put down anything more than 5%. And many times even 3% will do. I’m sure there are some doing all interest, no money down again. And if not now- very soon. The number of cash buyers and investors still remains WAY above historic norms, adding to the speculation.
Ever notice the condo that sells quickly, only to come back on the market a week after purchase for rent? This is very common in the GreenZone now. It’s all speculation. Engineered by Janet Yellen and her friends in Washington.
And it has certainly driven up housing prices. At least 5, maybe more, big cities are back in bubbles.
Anyone else see the most recent HGTV House Hunters?
Young 30-something couple without kids in LA. They had “normal” jobs- she was HR consulting and I forget what he did. Not bankers or lawyers. Their maximum budget was $575,000.
During the episode they literally said, “we need to buy now or else we may never be able to.”
Also- they said they were looking well under their price point (in the $400,000s) because they knew there would be bidding wars. (Yes- that’s completely normal.) Of course, the house they bought- they outbid everyone (yay- they WON!) and they ended up paying $532,000.
This housing market is very, very sick again. Anyone who doesn’t see it is blind. But it took many years when the mania took over last time to burst. The same will happen this time. The only thing that could put the kibosh on rising prices here in Chicago would be rising mortgage rates or a big dump of inventory- which doesn’t appear likely to happen anytime soon.
But when it does- condo owners are going to be in a world of hurt. Who’s going to buy that $600,000 1350 square foot 2/2 with the 20 year old kitchen with 5% or 6% mortgage rates?
But until then- party on!
Don’t talk about LA.
The point is that when so many people are still losing in so many areas around Chicago it can’t be the hottest market in 10 years.
“Don’t talk about LA.”
Oh- it’s only a matter of time, Gary, before they have the Chicago episode on (they LOVE Chicago on House Hunters) where the 20 or 30-something couple says the exact same things:
1. We have to buy now or we’ll be priced out forever.
2. It’s so competitive, there are bidding wars. We have to be ready to go $100,000 over the list price to “win.”
They shoot House Hunters like 5 to 6 months before they show the episodes. So the Chicago bubble segments should start appearing by next fall.
You don’t need the ENTIRE city of Chicago to be booming to have a super hot market. You only need the most desired zip codes. And then it will spread from there as people are priced out (as that’s already happening.)
Just over the weekend- the Tribune had a lovely little article about how there was an open house for a condo in Belmont Cragin and 25 buyers showed up. 25 buyers! Lol.
And why? Because they were priced out to the neighborhoods to the east.
Yes- the bubble is expanding. But it will take time to go into a full-fledged mania. All depends on how long the Fed leaves the cheap money. They always overshoot, so it’s likely it will be really bananas again before they say “whoops- we’d better calm this down.”
By the way- it IS the hottest market in 10 years. By far.
Keep on exaggerating Sabrina. Where I am that is NOT the case.
“By the way- it IS the hottest market in 10 years. By far.”
Are you ever right?
“Are you ever right?”
Nope! She’s like Jim Cramer, a fantastic contrarian indicator
Btw, I’m refinancing on a jumbo 30 yr fixed at 3.5% right now, saving myself almost 200 a month, and I purchased less than a year ago! SOOO glad that [10yr]rates didn’t stay “firmly above 3%” lol
Btw, I’m refinancing on a jumbo 30 yr fixed at 3.5% right now, saving myself almost 200 a month, and I purchased less than a year ago! SOOO glad that [10yr]rates didn’t stay “firmly above 3%” lol
Yep. This is what is keeping the bubble expanding. We are a monthly payment nation. If you can get that monthly payment lower, who cares if you’re paying “more” for the house? No one does.
It will all end in another disaster. But as long as people are going to live in their homes with those low rates for a LONG time- then they’ll be fine. It’s people who will have to sell once they go up.
The Fed is really fixing it this time. There is no way to get around the rates rising at some point and making housing even more unaffordable than it already is. It’s possible we could see mass foreclosures for the second time in 2 decades. Wow.
Are you ever right?
I’ve noticed Chuk isn’t posting anything these days because he has been 100% WRONG about the housing market in 2016.
Not even a little bit wrong. 100% wrong.
It’s up, up and away. Nothing going to stop the price increases and the bubble from building with this hot labor market and the record low rates.
“It’s possible we could see mass foreclosures for the second time in 2 decades.”
But even you have said that the bubble is limited to the green zone – and even within the green zone it can’t be next to the el or a busy street or the highway or the Jewel parking lot and it can’t be one of the mass produced condos from the previous decade or a home with outdated finishes or have a weird layout. So what’s left to be in a bubble is hardly enough fuel for “mass foreclosures”.
“Not even a little bit wrong. 100% wrong.”
Really? You mean they ARE going to raise rates 4 times this year!?!?!?
ps, you might want to read that thread again Sabrina. The only one 100% wrong so far is you…Feel free to post anything you think that proves me wrong.
“ps, you might want to read that thread again Sabrina. The only one 100% wrong so far is you…Feel free to post anything you think that proves me wrong.”
Sure chuk. You mean how we’re in a recession? And how housing prices in Chicago are going to drop 5%? That thread?
Still have another 7 months. But if the recession doesn’t get here in about 60 days, there’s not going to be one in 2016.
You DO know the definition of a recession, right chuk?
And it would take more than a recession for housing prices to drop this year. Even during the bust of 2008-2009 it took months before we saw any kind of price drop. That was as the foreclosures started piling up. Housing isn’t a stock. Prices simply can’t move down that quickly. And a price decline would be extremely rare for Chicago (as we’ve discussed before.)
There have been a half a dozen recessions over the last 50 years and not in ANY of them did Chicago housing prices decline (except for the bust years.) Even during the nasty early 1980s recession when 500,000 jobs were being lost every month, Chicago housing prices didn’t decline.
So you can mock me all you want about my calls on the Fed. Bring it. I’m glad to be aligned with many of the Fed governors, many of which have said openly the Fed should be raising more quickly. But they’re not voting members this year so they can speak their mind.
Because you’re just as wrong on your economic call.
You know what you said in December 2015. You never did say why prices would decline in a recession when it has only happened one time in the last 50 years in Chicago and that was the worst recession in 100 years.
By the way- you all know where I stand on this market. It’s the same as where I stood in December. But maybe that’s because everyone is writing me about the multiple offers and I actually see listings where the property is selling for above ask. It is WAY hotter than 2013 and prices soared that year. Nothing stopping it right now. Too much demand, not enough supply and record low mortgage rates along with easy credit.
Chuk’s 2016 prediction:
“So Chuk is still not saying why housing prices would decline next year in Chicago if we have a recession?”
What are you confused about? Your answer is contained in your question. I said that I think we will have a recession, and as a result, housing prices will go down. What more would you like? Would you like me to tell you what a recession is?
If I said I thought Chicago would get nuked, and prices would go down, would you ask my why I thought prices would go down?
Sabrina, can you give a clear answer on what YOU think prices will do in 2016? Because you have already said they will go up, down and stay flat. Please pick one…
Note: I never predicted any dramatic decline in prices. I am predicting -5% or so in 2016.
“Really? You mean they ARE going to raise rates 4 times this year!?!?!?”
We’re not talking about me. We’re talking about you.
Don’t try and change the topic. You’re the one who is 100% wrong this year.
We don’t know what the Fed is going to do. They are meeting again this week. Some of the Fed governors have said that they could raise 50 basis points at a meeting later this year if need be- and that it always doesn’t have to be 25 basis points. So who knows? It will depend on wage pressures. Wage growth pulled back last month which gave them an out. But we already have an out of control housing market- including in rents- which is now pressuring the CPI. If other components start pressuring, the Fed will have no option but to raise.
I don’t think they will do so this month, however.
Not to beat a dead horse, but I will, here is a list of all the 2/2s currently for sale in Lake View: http://lucidrealty.com/homes-for-sale/Chicago_Lake_View/condos_townhomes/2bedroom_2bath.php
Looks like about half the sellers are “idiots” – i.e. listed at or below $400k. I just noticed the one at 1347 W Eddy for $349,900 (not mine). Pretty nice unit.
“Looks like about half the sellers are “idiots” – i.e. listed at or below $400k. I just noticed the one at 1347 W Eddy for $349,900 (not mine). Pretty nice unit.”
1347 w eddy was converted into condos at the height of the boom in 2006. It was apartments before they put in granite counter tops. There’s no parking with the building.
This sold in 2006 for $348,000. So it’s back to bubble pricing for this too.
And, no, it’s not one of the 1200 square foot 2/2s that are all selling for OVER $400,000- and, in most cases, closer to $500,000.
Apparently people don’t need parking anymore. They’re all going to use the highly reliable and comprehensive public transit system this city has to offer. See Transit Oriented Development.
My point is simply that there are a ton of options at or below 400k.