How Hot IS the Market? A 2/1 With Everything in Lincoln Park: 836 W. Wrightwood
This 2-bedroom at 836 W. Wrightwood in Lincoln Park came on the market in April 2014.
It is in a vintage 15-unit building that was built in 1884.
(Wasn’t this building used as an apartment in one of those Focker movies?)
It has all the features that a first time buyer would be looking for including central air, washer/dryer in the unit and a parking space behind the building.
The front of the unit is south facing so it gets a lot of light.
There is exposed brick and a wood-burning fireplace.
The kitchen has white cabinets, granite counter tops and stainless steel appliances.
It is not located next to an El train line or the metra.
It is just a few blocks to the Diversey brown line stop.
It has been on the market for 51 days and has been reduced $15,000.
With rising rents, isn’t this a good rental alternative?
Why isn’t this selling if the market is so hot?
Brian Loomis at Coldwell Banker has the listing. See the pictures here.
Unit #2: 2 bedrooms, 1 bath, no square footage listed
[unordered_list style=”bullet”]
- Sold in April 1994 for $128,000
- Sold in September 2006 for $334,000
- Originally listed in April 2014 for $375,000
- Reduced
- Currently listed for $360,000
- Assessments of $248 a month (includes cable)
- Taxes of $4156
- Central Air
- Washer/Dryer in the unit
- Parking included
- Bedroom #1: 13×9
- Bedroom #2: 11×9
[/unordered_list]
“It is just a few blocks to the Diversey brown line stop”
And the Fullerton stop, too. Slightly harder to get to, bc of Lincoln, yes, but the 2 minutes extra walk gets a lot more train frequency.
NYT calculator sez that this place, with *only* a 3 year hold, and 0% home price increase is even with a $2500/mo rental. Make it a 5 year hold, it’s $2000/mo.
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
Question–what do condo owners–in NON-hi-rise buildings–actually pay for HO insurance? Do you really pay 30 bips or more of your purchase price?
Also- not every property is sitting on the market, obviously.
This 2/1 just over the border in Lakeview (but in East Lakeview) went under contract in like a day.
Same price, basically.
It’s also vintage but it has its own secure garage and is the top floor. It’s missing the central air though.
http://www.redfin.com/IL/Chicago/2817-N-Cambridge-Ave-60657/unit-3/home/13371882
But in a truly “hot” market (like so many real estate agents are rah-rahing it is- i.e. “buy now or you’ll pay more next year”)- this 2/1 on a lovely street in Lincoln Park would NOT be on the market nearly 2 months.
that lakeview property has a +den +roof rights +top floor +more sqfootage +closer to lake +newer finishes
not exactly comparable, as this 836 W place seems a tad overpriced
“that lakeview property has a +den +roof rights +top floor +more sqfootage +closer to lake +newer finishes
not exactly comparable”
And +garage parking v surface lot.
Here’s the recent comp for the featured place:
http://www.redfin.com/IL/Chicago/842-W-Wrightwood-Ave-60614/unit-2/home/13361425
Parking is not really included in the price. The building does not have enough spaces for each unit so they share what is available. Plus the place looks like the 80’s and the kitchen is brutal. And finally, who wants to live in a 2 /1?
“Parking is not really included in the price. The building does not have enough spaces for each unit so they share what is available. Plus the place looks like the 80?s and the kitchen is brutal. And finally, who wants to live in a 2 /1?”
I’m having flashbacks to several years ago when Steve would come on here every day talking about how NO ONE was losing money in Lincoln Park and prices would NEVER go down there because it was where the rich people lived and they don’t lose money. ARGH! Flashback, flashback!
And like then, I could show you dozens of examples of Lincoln Park properties sitting there with no buyer. But Steve, just like 4 years ago, would find some reason why they weren’t as great as the $4 million house that just sold.
But you see- prices in Lincoln Park DID go down. And properties ARE sitting on the market right now (and not selling in 3 days.)
It’s a really mixed market. It literally is block by block and property by property. Some properties are selling within a week. Others are sitting and sitting. In a truly “hot” market EVERYTHING is on the table and buyers buy whatever they can get their hands on- even if it’s not perfect. But that’s not what is happening in Chicago right now.
It’s just kind of a dead market. The only people who are buying are those that HAVE to. Same with the sellers. Everyone else is still underwater despite the price increases last year.
After Gary said yesterday that all of his Lakeview 1-bedrooms were hot, I looked up a couple of one bedrooms on the market in that neighborhood. Price reductions and sitting there on the market. I showed one to a realtor friend of mine and asked him why it wasn’t selling. It last sold 12 years ago. He said, “there isn’t stainless steel appliances and it needs new countertops.” Yes- even people buying 1-bedroom condos want it updated and new and fresh. And, as a seller, if you don’t do so- you’re not selling.
But, again, in a truly hot market, it would sell.
But it’s not a hot market. It’s a “blah” market.
People who can’t afford to replace counter tops and appliances themselves, shouldn’t buy condos/houses.
“In a truly “hot” market EVERYTHING is on the table and buyers buy whatever they can get their hands on- even if it’s not perfect.”
No, that would be a bubble market, not a hot market. I do know that many people looking to buy 2 bedrooms want 2 baths so they can get a roommate. 1 baths can be hard to sell. Also, she’s got it priced above what she paid during the bubble. If she gets anywhere near that price the market is hot as far as I’m concerned.
“No, that would be a bubble market, not a hot market. I do know that many people looking to buy 2 bedrooms want 2 baths so they can get a roommate. 1 baths can be hard to sell. Also, she’s got it priced above what she paid during the bubble. If she gets anywhere near that price the market is hot as far as I’m concerned.”
Buzz. Wrong again. PLENTY of 2/1s sell all the time. PLENTY were selling at the height of the boom when there was gobs of supply.
There’s no supply of anything right now. EVERYTHING should be selling within a week, right??? EVERYTHING! My god. The market is so great and so hot. It’s incredible!
Why isn’t this University Village townhouse selling right away? 44 days on the market and climbing.
http://www.redfin.com/IL/Chicago/835-W-14th-Pl-60608/home/12694582
Oh- I know it’s:
1. Overpriced
2. No one wants a 3/2.5. They want a 4/2.5.
3. It’s in a strange location.
Blah, blah, blah.
I can find examples all day of stuff sitting on the market. This isn’t a hot market. Not at all. It’s a stalling out and about to go down market.
I really wish the Fed would get it right. But that is asking too much since they don’t know what they’re doing.
By the way- plenty of 2/1s selling across the north side (some of them taking longer than others to finally go under contract.)
Here’s a 2/1 in Andersonville. Priced the same as the one in LP.
Apparently someone DOES want a 2/1. Maybe these buyers don’t want a roommate.
http://www.redfin.com/IL/Chicago/5354-N-Glenwood-Ave-60640/unit-3S/home/12807892
Wow, the comp anon (tfo) listed above is so much nicer. Beautiful contemporary finishes and stunning open floor plan. That one went into a multiple offer situation Day 1. So to some extent (in response to one of the posts above), it’s not only block by block but unit by unit.
Re the 2/2 vs 2/1 conversation: is a second bathroom worth an extra $200K assuming all other things are equal? For many people, the answer is no. A truly remarkable 2/1 would be preferable to a cookie-cutter 2/2 any day of the week in my book. I mean, really, how many times are you going to use that guest bathroom if you’re a single, a couple without kids or a couple with young kids? I mean, unless grandma is visiting every single weekend it wouldn’t even be an issue. If I fell into one of the above categories, I’d be far more concerned about the finishes, location, etc than whether or not there is an extra powder room.
Clarification: This comp: http://www.redfin.com/IL/Chicago/842-W-Wrightwood-Ave-60614/unit-2/home/13361425
The other unit at 842 W. Wrightwood #2, sold in March 2014. Perhaps the market has changed in just the last 2 months.
also looks like it has a completely diff floorplan
Oh Sabrina… i never said no one in lincoln park would lose money. What i did say is buy a place in a good neighborhood with true utility and you will be fine. I was right and you were wrong. You are crazy bitter Sabrina.
Let’s run through my scenario again. I bought a 4 bedroom row home for $1 million back in 2008 (eastern Lincoln Park). I have it financed at 2.875% and my mortgage and taxes come to $3,800 per month. My neighbor has the mirror image of my place and rents it for $5.600 per month. Should I have rented my neighbors place or should I have purchased? I could sell it today for a 15% profit but I never would. When we look for a larger property I will simply rent the property and profit nearly $3k per month.
Part of the reason there is no inventory has a lot to due to what I described above. Why sell when you can cash flow the s*** out of these properties. My property is one of many that will NEVER be on the market again.
Overpriced for a 2-bed 1-bath with questionable parking situation. Nowadays, two-worker couples want that extra bathroom to avoid a “traffic jam” in the morning; also from my experience the master bath becomes the domain of the “mistress” of the house while the hall bath gets claimed by the mister. Realtors know what I mean; the en-suite bath has dainty pastel towels, perfume and potpourri on the shelves (and “feminine products” in the closet), while the hall bath has shaving equipment, tossed-around towels in dark colors and more often than not, that tell-tale raised seat.
“What i did say is buy a place in a good neighborhood with true utility and you will be fine. ”
There’s a quite a bit of revisionist history going with you too Mr. Heitman. Your definition of a ‘smart’ buy was always retrospective, because the ‘smart’ buy was determined at the sale, not at the purchase. A sale for more than the purchase was a smart buy, and a sale for less was a ‘dumb’ buy, and you bent and twisted your criteria for a smart/dumb buy according to teh sales data, and not the other way around. IIRC, there was a period in 2008 you totally freaked out with the market crashing too.
And furthermore, you even gave me a hard time about being a renter/loser/chancery lawyer – and after timing the market perfect to buy at the bottom in 2012 in a top notch suburb, my home is now 20% in two years off the 2012 price (and that’s AFTER my six figure renovation too ); not your measly 15% above your 2008 purchase 6 years ago. I made far more than a measly 15% profit in six years in virtually every asset class I’ve invested in since 2008 – and I didn’t even have to use leverage to make that either.
“I made far more than a measly 15% profit in six years in virtually every asset class I’ve invested in since 2008 – and I didn’t even have to use leverage to make that either.”
Long live the Federal Reserve!
The paper version of the New York Times has been cracking me up the last two Sundays.
Last week they had a big article on one page about how the “middle class in NYC” (defined as those earning between $80,000 and $144,000 a year in the article) were getting squeezed out because of the high housing costs. They literally couldn’t make it work. But on the next page over they had an article about how the rich were buying so many $10 million+ condos they were buying them sight unseen from places like Aspen.
This week, in the same section, on one side they had a big article about student debt and how young people who have always struggled to “make it” in NYC after college graduation, now have to choose between making rent or defaulting. They can no longer do both. In the article, they were leaving the city. And on the next page over they had an article about “what you can get for $1.95 million.”
Crazy.
Here’s some stats to mull over:
Household Net Worth in the US in the last quarter surged $7.98 trillion, or 10.8%, over the past year. During the past four years, Household Net Worth has soared $26.797 trillion, or 49%.
That’s all thanks to massive Fed liquidity and pumping. Stocks, bonds, art, collectibles of all kinds and housing all at record highs. That’s why the rich are buying $10 million houses and condos sight unseen.
Party on.
Homedelete,
That was my point! I did not time the market perfectly, but I followed my own advice and I am in a much better position than if I listed to Sabrina and simply continued to rent. Oh, and don’t count your 20% appreciation to quickly. Sabrina thinks the market is about to crash again.
Yeah, there are reasons that 835 W 14th Place in University Village isn’t selling. First of all I just closed a 2545 sq ft refurbished unit there at $600K (yeah the buyer got a good deal but the seller was motivated), which is about market value so why should someone pay that for a smaller unit? And the photos suck and they are only offering a 2.25% co-op, which in theory shouldn’t matter but we get push back every time our sellers try it.
You can’t just claim that if bad deals won’t sell it’s not a hot market. Heck, there are always properties that won’t sell so then we’ve never had a hot market.
“Sabrina thinks the market is about to crash again.”
Of course it will. The Fed is withdrawing stimulus. The Fed’s balance sheet has ballooned over 350% in the last 6 years to over $4 trillion. A huge chunk of that came in just the last 16 months. What do you think will happen when the Fed takes away the punch bowl? To ALL asset classes?
I posted my May market update a little while ago – for Chicago, not NYC, not San Francisco, not the nation – Chicago: http://www.chicagonow.com/getting-real/2014/06/may-chicago-real-estate-market-update-home-sales-plunge/
Sales are down quite a bit but more than half of that is a decline in distressed sales and inventories remain low, though they seem to have bottomed.
….and what if in 6 more years it’s 12 trillion?????
” What do you think will happen when the Fed takes away the punch bowl? To ALL asset classes?”
HAHAHAHAHAHA! You really think they’re going to do that? Its an all out currency war right now, race to the bottom sort of thing going on… and the rich masters of the universe are LOVING it, who by the way put in place the politicians, who by the way put in place the central bankers around the world, who by the way could give two shits about affordability of the middle class, as they want to have them renting and paying THEM the money.
“”There’s no supply of anything right now. EVERYTHING should be selling within a week, right??? EVERYTHING! My god.
The market is so great and so hot. It’s incredible!”
Sigh. Let me help you out here. Let’s say there is demand for 10 2/2’s priced at 400k. If there are only 8 on the market priced at 400k, you may get a bidding war, etc. Now, let’s there is demand for 10, but there are ZERO on the market at 400k. But there is one on the market for 800k. Does the fact that that it doesn’t sell mean the market isn’t hot?
“I didn’t even have to use leverage to make that either”
Have you considered how much more you would have made w leverage? Why wouldn’t you do that?
you would have to be a total retard to be putting as much down as possible on your house right now with the stock market going nicely and mortgage rates at nearly 70 year lows
“the stock market going nicely ”
Is it going to continue to go nicely?
yep
I bought my home in cash, sonies. Have not and will never have a dime of mortgage interest, slashed my closing costs to almost nothing, and have complete peace of mind about making the best decision for our family. I look at the people who take out giant mortgages and question *their* intelligence.
Market talk is interesting, but what really matters is: can you imagine living in a home? If you like where you live and anticipate create wonderful memories there, what the market does or doesn’t do won’t matter much.
“HAHAHAHAHAHA! You really think they’re going to do that? Its an all out currency war right now, race to the bottom sort of thing going on… and the rich masters of the universe are LOVING it, who by the way put in place the politicians, who by the way put in place the central bankers around the world.”
It has to end at some point dude. $4 trillion in Federal Reserve Credit and STILL growing. Distortions in EVERY asset class (except gold and silver- but I’m sure they’ll be next.) At some point the music stops. Which is why there are three FOMC members already sounding the alarms that the Fed Fund rate will rise faster than everyone anticipates. Everyone is complacent- until the game ends.
Could the Fed go to $5 or $6 or $10 trillion on their balance sheet? Sure. I don’t think anyone could have foreseen $4 trillion in only 5 years. It’s unprecedented.
As for the housing market- the distortions are AGAIN playing out in each market. Poor Phoenix. May sales the lowest since 2008. Cash buyers drop 40% (because prices are now too high!). Inventory up 47% year over year. It’s a messed up market once again. Same with Las Vegas. Same up and down pattern happening there. The investors really messed up those markets and as soon as they pulled out, there were no buyers.
Inventories are rising in Chicago and sales are below last year. That’s not a recipe for health heading into the heart of the summer.
“Sales are down quite a bit but more than half of that is a decline in distressed sales and inventories remain low, though they seem to have bottomed.”
It’s neighborhood by neighborhood, block by block. Literally.
Bucktown/Wicker Park have almost no inventory on the lower end. In Lincoln Park/Lakeview- it’s pretty dead and there’s more for sale. Lots of properties sitting.
Surprisingly, some areas are selling pretty well still like Buena Park in Uptown.
It just all depends on what block you’re looking at. Number of price reductions on my neighborhood trackers are pretty robust though- which means that buyers are no longer rushing in to buy.
Mortgage apps continuing to fall indicates that the next two months will be SLOW again.
“It has to end at some point dude. $4 trillion in Federal Reserve Credit and STILL growing. Distortions in EVERY asset class (except gold and silver- but I’m sure they’ll be next.) At some point the music stops. Which is why there are three FOMC members already sounding the alarms that the Fed Fund rate will rise faster than everyone anticipates. Everyone is complacent- until the game ends. ”
And exactly HOW does it end? What is going to cause rates to go up? An improving economy? Business investment? We can all live with that.
“In Lincoln Park/Lakeview- it’s pretty dead and there’s more for sale. Lots of properties sitting.”
I’ve got the data. Lincoln Park SFH inventory flat at 5.7 months for more than a year now with a 27 day market time. Lincoln Park condos also flat in same time period with 3.2 month supply and 65 day market time. Lake View pretty much the same pattern with SFH 3.3 months of inventory and 74 day market time and condos at 3.8 months supply and 70 day market time. Sounds fine to me.
” Number of price reductions on my neighborhood trackers are pretty robust though- which means that buyers are no longer rushing in to buy. ”
Really? Is that the only conclusion? Or do you think that maybe real estate agents and their clients are no longer as prone to underpricing the listings?
“Really? Is that the only conclusion? Or do you think that maybe real estate agents and their clients are no longer as prone to underpricing the listings?”
No. They’re OVERPRICING and now they’re not selling. So cut, cut, cut. If they only would have listed for what it would sell for- there wouldn’t be this problem. But now that the market is cooling again there are too many overpriced listings.
But too many sellers are still underwater. They’re still trying to get out with a profit or even break even (understandably so.) They’ve seen the headlines. Prices are past peak again. The market is hot. Everything is selling. Bidding wars! So why shouldn’t they list high? But that’s not the reality in most neighborhoods and with most properties. The market ISN’T hot.
So when people overprice that provides evidence that the market is cooling? And prices are past peak but people are still underwater? I fell like Alice in Wonderland.
” And prices are past peak but people are still underwater?”
If you are buying, prices are too high.
If you are selling, prices are too low.
Welcome to Sabrina’s World (TM).
“So when people overprice that provides evidence that the market is cooling?”
Because the *only* reason that a seller and their realtor would ‘over’price something is because the no-longer-valid comps support a reach price. And then, when they don’t sell for a reach price, that means that the market is cooling, when one defines a ‘cooling market’ to mean a market where the price trend has passed an inflection point.
Have there been headlines that say prices are past peak? I haven’t seen those for Chicago.
no comprendo
I think the lag is getting to Sonies.
“I think the lag is getting to Sonies….”
He does at least seem to have picked up a foreign phrase or two, which is more than I can say for my son after a year of foreign language instruction. Crap, does this mean we can’t rely on his (finan) market guidance? I was just going to put all my spare cash in the market bc he said it would go well. Or am I supposed to sell aapl options, I forget.
“one defines a ‘cooling market’ to mean a market where the price trend has passed an inflection point”
The shitty house by me that’s overpriced by 20% easy hasn’t gone under contract, so inflection point it is!
I have been to mexico for at least 15 weeks of my life, deal with a spanish speaker multiple times a day, and took at least 8 years of spanish in school and well, I pretty much lost it all since I don’t use it. I can remember a word here or there but yeah… I better get brushed up in case Hilary Clinton gets elected… because then… moving to Mexico!!!
[lagging in to get the full picture of sonies’ spanish language/cultrual exposure]
I thought I would get a bigger return on lag. Didn’t even find out where sonies winters…
There seems to be some foundational confusion here between hot, cold, and healthy. We were certainly in a hot market, and any claims otherwise are asinine. We are probably “cooling” (how much so is definitely up for debate), which would be a movement towards a healthier market in the long term.
“where sonies winters”
A lagging indicator, at best.
Tho I suspect that he summers where he winters at.
“foundational confusion here”
Never! I can not recall a circumstance where multiple CC’rs talked past each other for *days* only to end up establishing that they were, in fact, talking past each other. Certainly a first.
“I better get brushed up in case Hilary Clinton gets elected… because then… moving to Mexico!!!”
The Mexican economy is humming along. It is on the cusp of completely breaking out especially as the government is spending on infrastructure (roads, railroads, airports.)
In immigration, there have been more moving TO Mexico than the reverse. Heck, some are even moving south because the universities are way cheaper and their children will save thousands of dollars by going to school there.
Mexico is still the most visited country by Americans by far (over 18 million a year). And something like a million Americans actually live there already.
” And prices are past peak but people are still underwater?”
Sure. You need to be at least 6% past where you bought to even break even after realtor fees/transfer taxes. Heck, you probably need to be 8% past because the transfer tax alone is 1.5%.
I don’t “winter” anywhere, well except chicago for the most part. I try and get somewhere warm for at least a weekend if not a full week between turkey day and tax day. All I can do with my stupid job. Would give the world to just take a month even two off!
” And prices are past peak but people are still underwater?”
Sure. You need to be at least 6% past where you bought to even break even after realtor fees/transfer taxes. Heck, you probably need to be 8% past because the transfer tax alone is 1.5%.
Ahhhhh, so we just have a definition problem. Your definition of “underwater” is in relation to purchase price, where I consider “underwater” to be in relation to current amount owed on the mortgage. My place is worth less than I paid for it, but more than I currently owe on it, so I don’t consider myself underwater, but you do. I only consider you underwater if you have to come to closing with a checkbook. Any place that is worth 6-8% more than owed at closing is not underwater.
“Sure. You need to be at least 6% past where you bought to even break even after realtor fees/transfer taxes. Heck, you probably need to be 8% past because the transfer tax alone is 1.5%.”
Define “break even”….
“Heck, you probably need to be 8% past because the transfer tax alone is 1.5%”
In Chicago, the Seller is responsible for transfer tax (city, county and state) of .45% of the purchase price. Buyer pays an additional .75%. It may have changed a little in the last few years but Seller doesn’t pay 1.5%.
Actually, it may be 1.05% for the Seller now, maybe Gary or someone can set us straight.
“Your definition of “underwater” is in relation to purchase price, where I consider “underwater” to be in relation to current amount owed on the mortgage”
You, Fred, and every data service in the country. Everytime there is a report about the percentage of “underwater” properties, it is *only* about the current value as compared to the mortgage balance. Granted, those reports don’t necessarily fully reflect the costs of sale, but it is *always* the construction that you use.
“Actually, it may be 1.05% for the Seller now”
As of April 1, 2008, the following state, county and city transfer taxes will be assessed on the sale of all residential and commercial real estate in the City of Chicago:
Illinois: $1 per $1,000 of sales price (seller’s responsibility)
Cook County: $0.50 per $1,000 of sales price (seller’s responsibility)
City of Chicago: $7.50 per $1,000 of sales price (buyer’s responsibility)
$3 per $1,000 of sales price (seller’s responsibility)
Thus–seller pays 0.45%, and buyer pays .75%. Which, even with an aggressive buyer, doesn’t add up to 1.5% for the seller to pay.
Thinking about going LAGitarian. There’s enough lag on this site to cure hunger through most of Africa!
“Thinking about going LAGitarian.”
Good idea. I’ll get around to joining you, eventually.
“Thinking about going LAGitarian.”
“Good idea. I’ll get around to joining you, eventually.”
Sure, it *seems* like a good idea. But there are only so many bowls of LAG one can stand.
Whipping up a batch of LAGnuts to exploit the cronut/wonut/bonut craze. Anyone want one?
Pending after 1 day in Lakeview:
http://www.redfin.com/IL/Chicago/863-W-Fletcher-St-60657/unit-1/home/13059171
One thing I noticed when we were looking last year – condos with a more traditional layout went really, really fast. This one has a living/dining room up front (and it’s really a living/dining room, not a living room with a table set up in a corner) and a ktichen/family room in back.
“Pending after 1 day in Lakeview”
If only there were so little lag here…
Went under contract in one day at asking. Just went pending.
http://www.redfin.com/IL/Chicago/1667-N-Bissell-St-60614/unit-2/home/13351311
The market is so hot…I could really use a Lagunitas.
Here’s another “traditional” layout condo. Under contract in 9 days. Listed for almost $100K over the 2012 sale price.
Don’t know why the link isn’t showing up in the above post:
http://www.redfin.com/IL/Chicago/1347-N-Mohawk-St-60610/unit-1/home/12769989?
” Listed for almost $100K over the 2012 sale price.”
That’s impossible. Nobody is getting that–they must have accepted 15%+ off ask.
I will note that (1) it is listed for only 4% over the *2004* price, (2) ask is 8% *below* peak price, (3) as much as I like ‘greater’ Old Town, I personally wouldn’t live in this precise location right now for that price (and that’s assuming that I was sending kids to British or Latin, or Franklin or Skinner North, all of which are pretty convenient to this location), (4) when did they stop doing the beds up, living space down layout? Dont see that much in newer dupe-downs, right?
No no no you guys are all wrong, its just because of the coming nuclear scare, duplex downs are HOT HOT HOT!
And I wouldn’t want to live on that block of mowhawk either, although mowhawk is better than cleveland where I shit you not would be living across the street from a building the locals call “crack city”
Under contract in 9 days. Listed for almost $100K over the 2012 sale price.
That’s impossible. Nobody is getting that–they must have accepted 15%+ off ask.
http://www.redfin.com/IL/Chicago/1347-N-Mohawk-St-60610/unit-1/home/12769989
Sold in 2012 for $451K
Sold in 2014 for $545K; $4K under ask
how can we be in a bubble if just NOW banks are starting to loosen their lending standards to get people to try and take out a loan, the demand is clearly not there!
http://finance.yahoo.com/news/exclusive-wells-fargo-loosens-standards-110638117.html
“Sold in 2012 for $451K
Sold in 2014 for $545K; $4K under ask”
That’s impossible; must be a case of mortgage fraud. Vice Lords back into mortgage brokerage?
“how can we be in a bubble if just NOW banks are starting to loosen their lending standards to get people to try and take out a loan”
Different stages of the bubble surely. Speaking of which, I’m really not sure what to do w my money these days. Looking for some sound financial advice.
” Speaking of which, I’m really not sure what to do w my money these days”
Have you considered laddered CDs? Or a risk free options strategy? Or just putting it all in AAPL?
The lack of inventory is really wrecking havoc on affordable housing prices. A handful of DINKS gets some jingle jingle in their pockets and they go around bidding up the handful of available properties on the market. I pity buyers out there. I’m debating selling my place, taking my ridiculous profits, and renting until the market drops again.
“Or a risk free options strategy? Or just putting it all in AAPL?”
Both of course. AAPL options.
“I’m debating selling my place, taking my ridiculous profits, and renting until the market drops again.”
I’ll buy it! Oh wait, nevermind, I forgot where you live now. And all the residual crud in your basement.
Personally I think the US stock market is too lofty. I would look at emerging market funds, Latin America, and Asia. I would also spread some money around in fixed income funds: convertibles, preferreds, publicly traded partnerships, corporate bond funds, munis funds, REITs. And for anyone still renting, with mortgage rates so low I’d buy a place.
“I would look at emerging market funds, Latin America, and Asia. I would also spread some money around in fixed income funds: convertibles, preferreds, publicly traded partnerships, corporate bond funds, munis funds, REITs.”
That’s a whole lotta stuff to keep track of. I really just want sonies to tell me the one big idea.
“And for anyone still renting, with mortgage rates so low I’d buy a place.”
But if I take out a mortgage, that’s just more money I need to put somewhere else. Maybe HD can explain how this laddering business works.
“But if I take out a mortgage, that’s just more money I need to put somewhere else.”
I’m thinking you only take out a mortgage for $417K unless you can get a good jumbo rate. You’re going to put down at least 20% anyway so that will suck up some money. I’m living in a MUCH nicer place now than before and my monthly cash outlay went from $3200 to around $2500 and about $800 of that is going towards principal repayment. Granted I put down more than 20% and I got a 7 year ARM and bought down the rate to 2.25%.
“Looking for some sound financial advice.”
1) you probably won’t find that on the internet
2) Some of the best things in life are actually not free
or something like that… anon… who the hell said there’s a risk free options strategy? That person sounds like a retard!
Market has a looooooong way to go, you’ll see… you heard it here first!
The lag is killing me; must get Sonies’ advice to DZ faster…
“SONIES: “Looking for some sound financial advice.” 1) you probably won’t fi…”
I fear this is not going to be constructive…
“ANON (TFO): The lag is killing me; must get Sonies’ advice to DZ faster……”
If sabrina would get us some better latency we could return to the golden days of high freq commenting.
hahahahahahahaha, not a chance with that ultra spam guard we have in place
Also Gary, for 30 year fixeds jumbo rates are currently (4%) less than conforming rates (4.25%)… FHA’s are the lowest of all though by a significant amount. (3.625%)
I’ve heard that but wasn’t sure. But like I said, if you can get a good jumbo rate I’d go for it.
I wonder about that because it certainly doesn’t show up that way on Bankrate.com. But then again someone just closed on one of my listings with a 30 year jumbo at 3.25%.
well our bank sends us weekly sheets with rates just sharing what they give to us, this has been a pattern for at least a year now, and they sell mortgages to the big banks so bankrate could be wrong?
What’s the best rate right now a no cost, 30 year refi with 25% down. 800+ credit scores.
I stopped paying close attention after our last refi, but that’s been the pattern for ~24 months anytime that the Conforming rate goes over 4. Jumbos were slightly higher when the conforming rater was 3.75 and lower, but have mainly been bt 3.75 and 4.35 for quite a while.
Another data point supporting my theory that traditional layout condos sell faster and better retain their value:
https://www.redfin.com/IL/Chicago/3933-N-Greenview-Ave-60613/unit-2/home/12705002?
Under contract in 2 weeks, sold for $75K over the 2009 sale price.
“Another data point supporting my theory that traditional layout condos sell faster and better retain their value:”
What do you mean by “traditional layout condos”?
The one you linked to is a 3/2 with 1800 square feet.
There’s a unit that just came on the market nearly right next door 11 days ago. Also a 3/2. Same square footage. Last sold in 1999 for $371,500. Now bank owned. On the market for $469,900.
Will this one “sell faster” and “retain its value”?
https://www.redfin.com/IL/Chicago/3927-N-Greenview-Ave-60613/unit-4S/home/12774084
Madeline: What about this 3/2 also just next door to the one you cited?
Bought in 2010 for $475,000. Listed at $499,000.
It’s a second floor unit though.
What’s your criteria for those that sell better than others?
https://www.redfin.com/IL/Chicago/3939-N-Greenview-Ave-60613/unit-AVE2N/home/12792590
This comment thread had *everything*.
To the Featured Unit:
Sold in Aug-14 for $361k (above ask!) Cash purchase.
Sold in Jul-16 for $358k (ask was $369) 80% LTV
Sold in May-22 for $465k ($15k over ask! and above 14+CPI) 90% ltv
Looks like the only substantive change was adding an island (which is a big improvement to the space, imo).