New Paint and Now Trying to Sell Again: A 1-Bedroom in 70 W. Huron in River North
We’ve chattered about this 1-bedroom in the Hermitage, at 70 W. Huron, several times in the last year.
But the first time we chattered about it, in April 2009, it looked different with dark red living room walls and blue walls in the kitchen.
See our April 2009 chatter and pictures here.
The unit is back on the market again but it has been painted and the price has been reduced by $32,900 in the last year.
The unit has granite counter tops and hardwood floors in the kitchen but the rest is carpeted.
It has central air but no washer/dryer in the unit.
Is this finally priced to sell?
Living room before:
Living room now:
Kitchen before:
Kitchen now:
Barbara Binik at Baird & Warner now has the listing. See more pictures here.
Unit #803: 1 bedroom, 1 bath, 925 square feet
- Sold in September 1996 for $138,000
- Sold in November 1998 for $147,000
- Sold in May 2004 for $252,000 (looks like it included the parking space)
- Originally listed in February 2009 for $274,900 (parking extra)
- Reduced twice
- Was listed in April 2009 at $258,500 (parking $35,000 extra)
- Reduced
- Withdrawn and relisted
- Currently listed for $242,000 (parking $35,000 extra)
- Assessments of $490 a month (includes heat, air conditioning and cable)
- Taxes of $2896
- No in-unit W/D
- Bedroom: 13×12
“Sold in September 1996 for $138,000”
But at that time mortgage interest rates were around 7.5%-8% http://mortgage-x.com/general/national_monthly_average.asp?y=1997
so I still maintain that much of the property appreciation in Chicago was driven by lower mortgage rates. Monthly payments are largely the same.
1996 ($138K purchase): $110K loan @ 8% (30 yr. amort) = $810 per month
2010 ($250K purchase): $200K loan @ 5% (30 yr. amort) = $1,075 per month
I still think, even though Joe Zekas disagrees, that interest rates falling drove much of the price appreciation in RE during the last decade, and if rates jump back up, it will drive prices lower from where they are. So what happens when QE finally stops, if ever…..
Wow, the paint job actually made the listing looks much better. So did a little rearangement and getting rid of clutter.
925 ft2 is a nice sized 1 bed. I know a ton of west-loop 2/2’s that are barely bigger.
I’m waiting for people here to go crazy about the assessments. While they are high, generally. They are not out of line for a full ammenity building with heat & air included. Obviously if you do not want to live in a full ammenity highrise with heat & air included, then this ammount is unacceptable to you. but no need to say ‘high assessments=FAIL’ as usual.
You also have to consider wage inflation and demand to live in condos downtown as well. Not to mention availability of financing. Interest rates certainly are correlated to prices, but I don’t think it is as strong as implied.
“Monthly payments are largely the same.
1996 ($138K purchase): $110K loan @ 8% (30 yr. amort) = $810 per month
2010 ($250K purchase): $200K loan @ 5% (30 yr. amort) = $1,075 per month”
While I agree that the lower rates abetted the bubble, calling 810 and 1075 “largely the same” is absurd. That’s 32.7% more–>would you consider the purchase prices to be “largely the same” if one were $138k and the other $183k? I sure would not.
Does anybody know (as a generality) if the blowers for the fan coil units are on the units meter or the buildings?
At least you’re close to Whole Foods here.
It’s still just $200 bucks or so, which is how most people would view it, not “32.7% more”.
anon (tfo) PS plus if some of the bubble buyers were using 3%-4% ARMs the monthly difference in dollar terms equalizes even closer.
So, I think it’s safe to say this unit should be priced somewhere between $800-$1200 per month for a 80% mortgage at prevailing mortgage rates.
“It’s still just $200 bucks or so, which is how most people would view it, not “32.7% more”.”
Yeah, and *most* people are idiots, so you’ve got that going for the argument, too.
Of course, you’ve got to consider the assessments and taxes, too, so it’s more like $1800 v. $1500 (lowering taxes but not proportionately), making it only 20%. ‘course, qualifying for those two mortgages, at 30% of gross, is the diff b/t income of $72k and $60k, which means a lot more people can consider it at the lower payment amount. Lax underwriting was a necessary piece of the lower rates inflating the bubble, too.
“plus if some of the bubble buyers were using 3%-4% ARMs the monthly difference in dollar terms equalizes even closer.”
Hey man, it’s your example, not mine. And I agree with the premise, as I said. I just think that saying that $810 is basically the same as $1075 is wrong and harms the argument. If you owned an apartment, and listed it asking for $1075/month, what would you say to a prospective tenant who offered $810/month b/c “It’s basically the same amount of money”? I know I’d have a hell of a time not laughing at them.
“Does anybody know (as a generality) if the blowers for the fan coil units are on the units meter or the buildings?”
Unit usually
Paintjob makes the place look a lot bigger, well done
Anon(tfo) the payment are largely the same. The couple of hundred bucks a month won’t bust anyone’s budget. however, I agree with Dan’s argument in part; some areas like LP and GC are a lot a result of lower interest rates; but other areas had flat out ‘califorization’ as I like to call it: $100’s in the 90’s to $300 or $400k today i.e. that house in portage park yesterday. That kind of appreciation can’t be explained by interest rates, it’s explained by HELOC and easy money.
“The couple of hundred bucks a month won’t bust anyone’s budget.”
So long as they are as prudent as you would like them to be. Most people aren’t.
How ’bout you bill $810 for 5 (or whatever) hours of your time instead of $1075–that won’t bust your budget, will it? 25% drop in realization isn’t anything to worry about, right?
I agree that the paint job was the smart thing to do. Just goes to show that neutral colors exist and are default for a reason: they make the place appear more bright, airy and spacious than bold colors.
277K with parking- carpet, no washer dryer- and a galley kitchen with florescent lighting… Ummm, no thanks.
I bet this would probably sell at the 2004 price (with parking included)
hey – afford it or not, $200 is one less pair of shoes a month. For me, a point of consideration…
“afford it or not, $200 is one less pair of shoes a month.”
And one pair of shoes a month is largely the same as two, isn’t it?
[/snark]
Not to mention the example was $265/month more, not $200.
And, again, I agree with the underlying point.
Can;t overlook the galley kitchen/bad cabinetry and white appliances…not to mention the dated windows and what appears to be a minimal view….i think the seller needs to drop their price by 20-40k to be competitive by the looks/location of this condo.
Hi,
Has anyone seen that place at 70 West Huron Street? Any opinions?