Crib Chatter

The September housing data is out.

Last year’s September was the slowest in 8 years so it’s not a surprise that 2020 saw a rebound.

However, the hot pandemic market from the summer looks to be continuing into the fall as sales were the highest in 14 years, and that includes the 2007 “housing bubble” market.

The city of Chicago saw year-over-year home sales increase 28.1 percent with 2,570 sales in September, compared to 2,006 a year ago. The median price of a home in the city of Chicago in September was $322,500, up 10.4 percent from September 2019.

September sales for the last 14 years:

• 2007: 2172 sales
• 2008: 1816 sales
• 2009: 1918 sales
• 2010: 1403 sales
• 2011: 1498 sales
• 2012: 1845 sales
• 2013: 2395 sales
• 2014: 2242 sales
• 2015: 2414 sales
• 2016: 2398 sales
• 2017: 2355 sales
• 2018: 2040 sales
• 2019: 2006 sales
• 2020: 2570 sales

Median prices for the last 14 years:

• 2007: $267,750
• 2008: $268,600
• 2009: $225,000
• 2010: $180,000
• 2011: $190,000
• 2012: $188,900
• 2013: $230,000
• 2014: $249,000
• 2015: $250,000
• 2016: $260,000
• 2017: $275,000
• 2018: $285,000
• 2019: $292,250
• 2020: $322,500

“Continuing a three-month trend, both the Illinois and Chicago area housing markets recorded positive year-over-year increases in both prices and sales,” said Geoffrey J.D. Hewings, emeritus director of the Regional Economics Applications Laboratory at the University of Illinois. “Two concerns are the continuing low inventory problem and the increase in the number of serious delinquencies. While the former issue is having a significant impact on upward price movements, the delinquency problem in combination with increases in the number of long-term unemployed may dampen demand in 2021.”

Statewide, inventory fell 35.8% to 40,047 properties from 62,406 properties a year ago.

In Chicago, however, inventory was up 1.9% year-over-year to 10,661 from 10,467 a year ago.

The 30-year fixed rate mortgage fell again, to an average of 2.89% in September from 2.94% in August. It was 3.61% in September 2019.

“With continued record low interest rates, we’re still seeing an increase in demand on properties as indicated in the 28.1 percent increase in closed sales and 10.4 percent increase in median sales price,” said Nykea Pippion McGriff, president of the Chicago Association of REALTORS® and vice president of brokerage services of Coldwell Banker Realty. “Buyers are capitalizing on the market and acting quickly, especially for well-priced properties.”

Single family homes sales in Chicago soared 30% in the month to 1,075 while condos sales were up a healthy 26.8% to 1495.

The price pressures appear to be mostly on the single family home side, however, as single family median price was up 21.6% year-over-year to $297,950 while condos were up just 0.3% to $335,750.

Again, keep in mind, that median is determined by the mix of the sales.

Year-to-date, Chicago sales are still down 7% compared to last year at 19,121 versus 20,569 in September 2019.

But the “spring” buying season was interrupted and has been pushed to the summer and fall.

What will be the key factors that could trip up this housing boom into 2021?

• Low inventory?
• Rising mortgage rates?
• High unemployment/slow recovery?
• No vaccine?

Illinois housing market continued to bounce back in September with a surge in home sales and higher median prices [Illinois Association of Realtors, Press Release, October 22, 2020]

It’s time to take some time off.

With COVID outbreaks happening all across the country, I’m doing a staycation this week.

This is the reality of 2020.

These palm trees in the Gold Coast were the closest I got to seeing the real deal this year.

Kudos to the gardener at this building who goes above and beyond every summer.

I’ll post on the September home sales on Oct 26.

Mortgage rates continue to fall, with the 30-year average fixed mortgage rate as low as 2.81%.

If they fall further, could this be one of the hottest spring markets in over a decade?

Regards,

Sabrina

We’ve been chattering about the impacts of the pandemic and the protests and looting on Chicago real estate for several months.

The data shows that sales of downtown condos are slow as inventory has exploded to well over 12 months in several downtown neighborhoods.

But single family home inventory was just 2.8 months citywide at the end of August (we’ll be getting the September data shortly.)

That’s incredibly tight inventory.

This scenario means that prices are soft in the downtown condo market, but incredibly hot in single family homes around the city.

Dennis Rodkin at Crain’s recently investigated what is going on with Chicagoland housing prices.

The week that ended Oct. 12 was the ninth consecutive week when the median price of homes sold in the Chicago metropolitan area was up 10 percent or more from the corresponding time in 2019, according to weekly reports posted by Midwest Real Estate Data. In four of those weeks, the median price was more than 15 percent above where it was a year earlier.

This spike comes on the heels of a 41-month stretch when the region’s home prices rarely rose by more than 5 percent from the year before and mostly ran in the 3 percent range, according to monthly reports from Illinois Realtors.

But not all properties, neighborhoods or towns are seeing the same hot market.

It appears to be concentrated most in lower-priced areas and first-time buyer markets, where the expanded affordability that low interest rates bring would make a bigger difference than in affluent markets.

Among them: South Cook County has at least 20 suburbs where prices are up in the double digits, and the condo markets in Lakeview, Edgewater and Portage Park, all frequented by first-time buyers, are seeing it too.

The average 30-year fixed mortgage rate just fell to another all-time low of 2.81%.

Will this hot market, and price increases, continue into the historically slow holiday period this year?

And if you’ve been waiting to sell, should you dive in now or wait for the spring market?

Home prices are suddenly rising fast here [Crain’s Chicago Business, by Dennis Rodkin, October 14, 2020]

This 2-bedroom in 823 W. Oakdale in Lakeview came on the market in September 2020.

Built in 1929, it has 10 units but no parking. It’s located in the landmarked Oakdale Avenue District with its famous terra cotta wall and buildings.

This unit has many of its vintage features including trim, crown molding and restored original windows.

The hardwood floors have been refinished and it has solid core doors.

The kitchen is in the farmhouse style with an apron sink, granite counter tops, custom dark cabinetry and stainless steel appliances.

The second bedroom has been repurposed as a dining room, but it does have a closet.

The bathroom has a white dual vanity with a marble tiled shower.

The unit has space pak cooling and washer/dryer in the unit.

There’s rental parking available in the neighborhood.

Originally listed in September 2020 at $315,000, it has been reduced to $299,000.

Is this a good first-time buyer condo with record low mortgage rates keeping that monthly payment low?

Sara McCarthy and Julie Dorger at Keller Williams Chicago-Lakeview has the listing. See the pictures and floor plan here.

Unit #2B: 2 bedrooms, 1 bath, no square footage listed

• Sold in August 1992 for $30,500
• Sold in June 1993 for $107,500
• Sold in July 1998 for $151,500
• Sold in May 2006 for $285,000
• Sold in December 2010 for $240,000
• Originally listed in September 2020 for $315,000
• Reduced
• Currently listed at $299,000
• Assessments of $298 a month (includes heat, exterior maintenance, lawn care, scavenger)
• Taxes of $5155
• Space pak cooling
• Washer/dryer in the unit
• No parking
• Bedroom #1: 14×12
• Bedroom #2: 15×13
• Living room: 15×13
• Kitchen: 10×9
• Foyer: 10×5
• Deck: 8×6

This 4-bedroom duplex up at 200 E. Delaware in Streeterville came on the market in October 2019.

200 E. Delaware was built in 1974 and has 189 units. It’s a full amenity building with an outdoor pool, exercise room, and doorman.

It also has an attached valet rental garage.

Those of you who watch HGTV’s Windy City Rehab will recognize this unit as the condo renovation they are doing on the show this season.

This unit now has an open floor plan on the main floor with the living room, dining room, kitchen.

The kitchen has custom modern wood cabinets with open shelving, Dacor appliances, a hidden wine bar with a wine refrigerator and an oversized island with seating for four.

3 of the 4 bedrooms are on the second floor, including the primary bedroom, with the fourth bedroom on the main floor.

The primary suite has a walk-in-closet, a marble bath with heated floors, a steam shower, a makeup vanity and Kohler fixtures.

This unit has two balconies, one on each floor.

It has all the features home buyers look for including central air, washer/dryer in the unit and rental parking is available in the building for $275 a month to $350 a month.

How much was done to this condo by Windy City Rehab?

From the Sun-Times:

Elsewhere in the episode, other problems are uncovered as Victoria realizes some of the red tape associated with renovating a unit in a high-rise building. It’s one of the first times the show has worked on such a property, but in a deluxe reveal, the team disassembled the gaudy faux painting, curved built-in entertainment wall and a bathroom that “looked like a box of crayons exploded” into a modern, hotel-like luxury unit that mirrored the space and breadth of a single family home.

The Delaware property — next door to the 875 North Michigan Avenue Building (formerly the John Hancock Building) where Victoria says she lived as a child on the 45^th floor — is still for sale by the end of the episode, with a staggering $752,000 renovation price tag that was only about $23,000 less than the two paid for the unit. Victoria alleges the renovation price was “way underestimated by Donovan,” who had initially put the assessment at $485,000.

Originally listed in October 2019 for $1.75 million, it has been reduced to $1.425 million.

Is this a deal for the square footage and location?

Ryan Prevett at Jameson Sotheby’s has the listing. See the pictures here (sorry, no floor plan).

Unit #8-9C: 4 bedrooms, 3.5 baths, 3350 square feet, duplex up

• Sold in April 2019 for $775,000
• Originally listed in October 2019 for $1.75 million
• Reduced
• Currently listed at $1.425 million
• Assessments of $2675 a month (includes heat, a/c, gas, doorman, cable, exercise room, pool, exterior maintenance, lawn care, scavenger, snow removal)
• Taxes of $18,980
• Central Air
• Washer/dryer in the unit
• 2-car rental parking available for $275 to $350 a month (each???)
• Bedroom #1: 17×18 (second floor)
• Bedroom #2: 1312 (second floor)
• Bedroom #3: 11×11 (second floor)
• Bedroom #4: 18×10 (main floor)
• Living room: 15×16 (main floor)
• Dining room: 14×13 (main floor)
• Family room: 14×13 (main floor)
• Kitchen: 14×20 (main floor)
• Laundry room: 5×10 (second floor)
• Balcony: 15×6 (main floor)
• Balcony: 15×6 (second floor)

7 months into the coronavirus pandemic, the impacts on the Chicago housing market are still shaking out.

In addition to the pandemic, the protests and looting of stores on the Mag Mile, and elsewhere in the city, also have had an impact on the city’s housing market.

But how much?

It’s become clearer that there have been different impacts of all these events depending on the location of the property in the city.

Downtown condos have gone cold while single family homes in the neighborhoods are hot.

Buyers want more space and a backyard. They don’t want to ride in an elevator.

Dennis Rodkin at Crain’s recently tried to figure it all out.

In the week ended Sept. 26 and most of the eight weeks prior, 1,000 or more condos came on the market in Chicago, according to data posted Oct. 5 by the Chicago Association of Realtors. The exception was the week before Labor Day, when 911 condos came on the market.

In that same eight-week stretch, buyers put fewer than 400 condos under contract per week, and in several weeks it was fewer than 325.

“The condo market is quieter than I’ve ever seen it,” says Linda Levin, a veteran downtown agent for Jameson Sotheby’s International Realty.

Meanwhile, as reported by the Chicago Association of Realtors, single family home inventory was just 2.8 months at the end of August citywide.

According to Rodkin, that’s the lowest inventory since January 2008, when CAR started reporting the data.

Meanwhile, condo and attached inventory, like townhouses, were at 6.1 months. That’s the highest since 2012.

In some downtown neighborhoods, it’s much higher and is clearly a buyers market.

Some of that inventory, however, is coming from the new luxury buildings that have listed units on the MLS.

However, there’s no doubt, that sales have gone cold downtown.

“River North, Gold Coast, Streeterville—those are the most difficult markets right now,” says Harry Maisel, an @properties agent representing a unit at 21 E. Huron. Buyers “don’t want to look at anything in a high-rise.”

With the inventory of condos so badly out of balance, price cuts are inevitable. Maisel says that at his 17th-floor listing on Huron, he had “zero showings in eight weeks” before cutting the price on Sept. 27 by a little over $69,000, to $829,900. Within a week, he says, two potential buyers asked to see the condo.

Is now the time to get a deal on a downtown condo?

2020 is giving Chicago condo sellers a headache [Crain’s Chicago Business, by Dennis Rodkin, October 9, 2020]

This 3-bedroom penthouse in the Rowe Building at 714 S. Dearborn in Printers Row came on the market in September 2020.

The Rowe Building was built in 1891 and has 9 units. It’s a live/work building with no parking.

I still don’t have a good picture of this building in my collection but it’s the loft building on the far right of the picture of 720 S. Dearborn above.

The top floor penthouse unit is actually a 2-story single family home.

It has east, west and north exposures.

The unit also has 4 outdoor spaces including a 400 square foot terrace and 3 balconies.

If this looks familiar, that’s because we chattered about it in 2017, when it was last on the market for the first time in 16 years.

You can see our 2017 chatter here.

Back then, the unit had a wood deck with landscaping (see the 2017 listing pictures) which was accessed out the living room sliding doors, but the 2017 listing said the decking had been removed to replace the roof.

The current pictures don’t show any decking for the terrace. There’s also no landscaping anywhere.

Dennis Rodkin at Crain’s recently had the inside scoop about the story with this property over the last few years.

The couple bought the house for $875,000, more than they are asking for it now, when they moved to Chicago from San Francisco for Gass to become director of the University of Chicago’s Smart Museum of Art. She left that post in September 2019 to return to California and is now director of a contemporary art museum in San Jose. 

They did not move in to the Printers Row house. They rented a home in Hyde Park while Hathaway, an architect, designed a rehab. His design included enlarging the windows on the north walls to enhance the interior’s views of the skyline.

“We were going to make it more contemporary,” Gass said, “and build out the roof decks,” which would make the outdoor spaces feel more like a yard than a rooftop.

He also talks about how the house got built on the roof, and who the architect is.

On the interior, the primary bedroom is on the main floor along with the living/dining and kitchen.

The second floor has the other two bedrooms and a family room along with several balconies.

There are skylights.

The kitchen has wood cabinets and stainless steel appliances.

The property has the features buyers look for including central air and washer/dryer in the unit. It doesn’t have parking but that’s available in the neighborhood to rent or to buy.

According to Rodkin, the house is accessed by taking the elevator up to the 8th floor of the building and then walking up a flight of stairs.

The current listing says it’s “waiting for your design ideas.”

It was listed in September 2020 for $850,000, which is $27,500 above the previous purchase price of $822,500.

Will they get the premium for this unique property 3 years later?

Bohdan Gorczynski at Berkshire Hathaway HomeServices has the listing. See the pictures here.

Unit #9-PH: 3 bedrooms, 2.5 baths, 2533 square feet, duplex up

• Sold in June 1991 for $392,000
• Sold in October 2001 for $615,000
• Sold in November 2017 for $822,500
• Originally listed in September 2020 for $850,000
• Currently still listed for $850,000
• Assessments are now $959 a month (they were $950 a month in 2017) (includes exterior maintenance, scavenger, snow removal)
• Taxes are now $10,086 (they were $9500 in 2017)
• Central Air
• Washer/Dryer in the unit
• No parking
• Can rent it nearby for $210 a month or buy at 801 S. Plymouth for $35,000 to $70,000
• Bedroom #1: 15×14 (second floor)
• Bedroom #2: 19×14 (second floor)
• Bedroom #3: 22×13 (main floor)
• Living/dining room: 26×25 (main floor)
• Kitchen: 15×12 (main floor)
• Family room: 35×11 (second floor)
• Terrace: 23×22
• 3 balconies

The Rowe Building was built in 1891 and has 9 units.

While it is the top floor unit, it looks, and acts, more like a single family home as it was built on top of the existing brick loft building.

The 2-story unit has east, west and north exposures.

It has 4 outdoor spaces including a 400 square foot terrace. The listing says the decking has been removed to replace the roof.

The kitchen has wood cabinets and stainless steel appliances.

It has a second floor family room.

This duplex has central air and an in-unit washer/dryer (you can see it in the bedroom closet picture.)

This 3-bedroom greystone condo at 1130 W. Armitage in Lincoln Park came on the market in October 2020.

Built in 1920, this greystone has 8 units and garage parking.

This unit is a south facing front unit with views over Armitage from a private balcony.

It has some vintage features including millwork, crown moldings and a wood burning fireplace in the living room.

The unit has oak hardwood floors in the main living area.

The living room, dining room and kitchen are open concept along with a bonus office nook off the living room.

The listing calls the kitchen a “Chef’s kitchen” with gray 42″ cabinets, a newer backsplash, granite counter tops, stainless steel appliances and an island with storage.

The primary suite has a walk-in-closet and an en suite marble bath.

There’s a second full bath along with two smaller bedrooms that the listing says can be used as guest suites or offices.

In addition to the front balcony overlooking Armitage, it has a back deck.

This unit has all the features today’s buyer is looking for including central air, washer/dryer in the unit and garage parking.

This building is right in the heart of the shops and restaurants of Armitage and near the shops of the Clybourn Corridor. It’s also just a few blocks to the Armitage brown line stop.

Listed at $589,000, will this vintage condo sell quickly?

Bari Levine and Diana Grinnell at @Properties have the listing. See the pictures here (no floor plan but the 2016 sale has one if you are interested).

Unit #2: 3 bedrooms, 2 baths, no square footage listed

• Sold in February 1995 for $254,500
• Sold in July 1995 for $274,000
• Sold in December 1999 for $370,000
• Sold in June 2001 for $410,000
• Sold in June 2005 for $505,000
• Sold in February 2016 for $515,000
• Currently listed at $589,000 (garage parking included)
• Assessments of $185 a month (includes parking, exterior maintenance, lawn care, scavenger)
• Taxes of $9728
• Central Air
• Washer/dryer in the unit
• Wood burning fireplace
• Front balcony
• Back deck
• Bedroom #1: 16×11
• Bedroom #2: 10×9
• Bedroom #3: 10×9
• Living room: 20×14
• Dining room: 12×12
• Kitchen: 12×12
• Laundry room: 5×6
• Private storage: 13×8

This 2-bedroom at 3306 N. Clifton in the Southport neighborhood of Lakeview came on the market in August 2020.

Built in 1998, this 6-unit building has garage parking.

This unit has hardwoods throughout.

The kitchen has white cabinets, granite counter tops, a tile backsplash, stainless steel appliances and a breakfast bar.

The kitchen is open to the combined living and dining room which has a fireplace and built-ins.

The primary bedroom is en-suite with an upgraded bath that has granite counter tops and double vanity sinks.

The listing says there’s a brand new furnace and a/c.

It also says there’s a 50-gallon hot water heater that is 5 years old.

The unit has a big private back deck.

It also has the features buyers look for including central air, washer/dryer in the unit and garage parking is included.

The listing says the building was tuck pointed in 2020 and was sealed 5 years ago.

Listed at $549,000, that is $149,000 above the 2015 purchase price of $400,000.

The 2/2 north side condo was a big seller during the housing bubble years.

Is it still in demand in 2020?

Erin Murphy-Retzloff at Coldwell Banker has the listing. See the pictures here.

Unit #2N: 2 bedrooms, 2 baths, no square footage listed

• Sold in June 1998 for $273,500
• Sold in July 2003 for $395,000
• Sold in August 2006 for $425,000
• Sold in October 2015 for $400,000
• Originally listed in August 2020 for $549,000
• Currently still listed at $549,000
• Assessments of $168 a month (includes exterior maintenance, scavenger)
• Taxes of $5657
• Central Air
• Washer/dryer in the unit
• Garage parking included
• Gas fireplace
• Bedroom #1: 15×12
• Bedroom #2: 12×12
• Living/dining room: 20×19
• Kitchen: 15×10
• Back deck

This 4-bedroom greystone at 2732 N. Francisco in Logan Square came on the market in July 2020.

Built in 1902, it is on a larger than standard Chicago lot measuring 33×125. It has a 2.5 car heated garage.

While this house is vintage, it has many modern features.

The kitchen has dark wood cabinets and a large island with Subzero, Miele, Thermador and Viking appliances.

It also has a breakfast nook and doors which lead out to a deck.

The house has a separate dining room.

3 of the 4 bedrooms are on the second floor along with the primary suite which has an en suite bathroom and walk-in-closet.

It also has French doors that lead to a balcony overlooking the back yard.

There’s another full bath on the second floor and a washer/dryer.

The lower level has a family room, the fourth bedroom, a full bathroom, a kitchenette with a big breakfast bar and a laundry room.

According to the listing, the floors in the basement and bathrooms are all heated.

The house has central air.

The listing says its a smart home with connectivity for lighting, irrigation, HVAC/security and interior/exterior music.

But the big selling point has to be a the rare in the heated in-ground backyard pool and spa along with an outdoor barbecue kitchenette.

Originally listed in July 2020 for $1.6 million, it has been reduced $125,000 to $1.475 million.

Will pools still be in demand in 2021?

Alfredo Medina at Kale Realty has the listing. See the pictures and floor plan here.

2732 N. Francisco: 4 bedrooms, 3.5 baths, 3841 square feet

• Sold in February 2003 for $408,000
• Sold in July 2005 for $559,000
• Sold in March 2012 for $860,000
• Originally listed in July 2020 for $1.6 million
• Reduced
• Currently listed at $1.475 million
• 2.5 car heated garage
• Central Air
• 1 fireplace
• 2 washer/dryers (second floor and lower level)
• Heated, in-ground pool and spa
• Outdoor barbecue kitchenette
• Bedroom #1: 14×14 (second floor)
• Bedroom #2: 13×12 (second floor)
• Bedroom #3: 14×12 (second floor)
• Bedroom #4: 14×10 (lower level)
• Walk-in-closet: 10×6
• Living room: 15×14 (main floor)
• Dining room: 14×11 (main floor)
• Kitchen: 22×22 (main floor)
• Family room: 27×16 (lower level)
• Kitchenette: 10×8 (lower level)
• Laundry room: 11×8 (lower level)