Crib Chatter

This 2-bedroom on the 6th floor in 2626 N. Lakeview in Lincoln Park came on the market in May 2018.

The building was constructed in 1969 and has 491 units and an attached parking garage.

The unit is a corner unit with east, south and west views.

The listing calls it a “luxury renovation.”

The kitchen has what looks like white cabinets, calcutta quartz counter tops, and stainless steel appliances.

There are Riobel bath fixtures and designer lighting.

The unit has central air but no in-unit washer/dryer. There is coin laundry in the building.

There’s also leased parking available.

It came on the market in the promising spring market priced at $379,900 but it has been slowly reduced $24,900 to $355,000.

Renovated properties used to sell quickly as buyers wanted “new.”

But are too many renovations, with the same finishes, harming the market with their sameness?

Jackie Grieshamer at 4 Sale Realty has the listing. See the pictures here.

Unit #608: 2 bedrooms, 2 baths, 1296 square feet

• Sold in January 1989 for $129,000
• Lis pendens foreclosure filed in January 2017
• Originally listed in May 2018 for $379,900
• Reduced several times
• Currently listed at $355,000
• Assessments of $998 a month (includes heat, doorman, cable, Internet, clubhouse, scavenger, exterior maintenance, snow removal)
• Taxes of $5603
• Central Air
• No in-unit washer/dryer but there’s coin laundry in the building
• Rental parking available in the building
• Bedroom #1: 18×12
• Bedroom #2: 13×12

This 2-bedroom coach house at 337 W. Armitage in East Lincoln Park just came on the market (this is the back alley entrance).

If it looks familiar, that’s because we chattered about it numerous times between 2011 and 2013.

You can see our chatter here.

Last time, most of you liked the property but felt it was overpriced (surprise!) when it was listed around $500,000 but thought it would sell closer to $400,000.

As you recall, the coach house sits behind a 3-unit building with entrances both on the back alley and towards the shared courtyard.

It has a modern interior, with a floating stairwell and cork and bamboo flooring.

One bedroom is on the second level with the second one in the lower level.

The kitchen has modern dark cabinets with Miele, Bosch and Subzero appliances along with a stainless steel island.

While the courtyard patio is shared with the other units, it also has a private rooftop deck.

The coach house has the features buyers look for including central air and washer/dryer in the house but it doesn’t have parking.

This coach house finally sold in 2013 for $430,000.

It has come back on the market 5 years later at $469,000.

Is it priced to sell quickly?

Michelle Berger at North Clybourn Group has the listing. See the pictures here.

337 W. Armitage: 2 bedrooms, 2 baths, no square footage listed but last time it was 1400 square feet

• Sold in August 1990 for $193,000
• Sold in October 2002 for $145,000
• Sold in June 2004 for $440,000
• Sold in May 2013 for $430,000
• Currently listed at $469,000
• Assessments are now $191 a month (they were $145 a month in 2013)(includes water and scavenger)
• Taxes are now $7132 (they were $2800 in 2013)
• Central Air
• Washer/Dryer in the unit
• No parking
• Roof top deck
• Bedroom #1: 17×12 (second floor)
• Bedroom #2: 16×11 (lower level)
• Living room: 16×11 (main level)
• Kitchen: 16×10 (main level)
• Laundry room: 9×6 (lower level)

337 W. Armitage:

Sorry everyone, but I have to go out of town suddenly.

There won’t be any more posts the rest of this week.

But things are heating up so we’ll be back to the chatter next week.

Meanwhile, to have something to chatter about, many others are trying to figure out what is going on with the Chicago market.

What’s causing the slowdown in home sales?

One Chicago realtor, John Irwin, believes that it could be the thousands of luxury rental apartments.

From his blog:

Chicago has historically been a difficult town for rentals. Aging properties and low inventories have dominated the market in the past; however, all of that is changing.

Literally thousands of new luxury rentals have hit the market since 2017 and over 7000 new units will become available in the next few years. In Lincoln Park alone, over 800 luxury rentals will be available on Lincoln Avenue from Wrightwood to Fullerton.

Many of these new construction buildings offer state of the art amenities such as common work areas, plunge pools and sun decks, fitness centers and Starbucks Coffee machines in the lobby.

For buyers considering buying homes priced up to $800,000, renting is now an attractive alternative to buying, particularly for the younger demographic.

It is no coincidence that we are seeing lower home sales and rising inventories in these same price points.

How Home Sales And Inventories Could be Affected

Using Lincoln Park as an example, 1465 homes priced under $800,000 were sold in the past 12 months.

If half of the potential 800+ new renters in the Lincoln Avenue corridor were people who would have normally purchased a home, 400 less home sales would have a dramatic effect on the market.

Based on these numbers, Lincoln Park home sales could drop 13.6% in the next 2 years due to buyers turned renters.

With the tax changes removing most of the benefit of owning a higher priced home with a larger mortgage and property taxes, will many potential buyers simply just rent for the next few years?

And what will that do to the market for the luxury one-bedroom condo or starter 2/2?

This 2-bedroom in 707 W. Junior Terrace in the Buena Park neighborhood of Uptown came on the market in September 2018.

This building was constructed in 1927 and is on the National Register of Historic Places. It has 16 units (although some listings say it has just 14.)

This is a half floor unit with East and North views.

It has many vintage features including the original hardwood floors, millwork, crown molding and a wood burning fireplace in the living room with a marble hearth.

One bedroom has a built-in queen sized wall bed so it can be used as a den or office.

The master bedroom is en suite. The bathroom has Ann Sacks tile, Robern cabinetry, Grohe fixtures and a towel warmer.

The kitchen has maple and glass cabinets, granite counter tops, stainless steel appliances and a separate breakfast area.

The listing says it has Marvin windows, designer lighting, custom draperies and Hunter Douglas blinds.

The unit has several features buyers look for including space pak cooling and in-unit washer/dryer.

It also says there is parking but I don’t think this building has parking. Maybe it is rental in the neighborhood?

At 1800 square feet, it is as big as most of the new construction 3-bedroom units.

Listed at just $349,000, is Buena Park a deal compared to other north side Lake neighborhoods?

Harry Maisel at @Properties has the listing. It is also agent-owned. See the pictures and floor plan here.

Unit #6N: 2 bedrooms, 2 baths, 1800 square feet

• Sold in April 1989 for $155,000
• Sold in September 1996 for $160,000
• Sold in February 1999 for $197,000
• Sold in September 1999 for $218,500
• Sold in July 2007 for $375,000
• Sold in May 2014 for $295,000
• Currently listed for $349,000
• Assessments of $1004 a month (they were $627 a month in the 2007 listing)
• Taxes of $6422
• Space pak cooling
• Washer/dryer in the unit
• Parking? Listing says it has it but I don’t think there’s any with the building.
• Wood burning fireplace
• Bedroom #1: 16×11
• Bedroom #2: 18×13
• Foyer: 9×8
• Breakfast: 12×9
• Living room: 16×14
• Dining room: 16×13
• Kitchen: 16×12

The Illinois Association of Realtors is out with the September sales which we already knew weren’t that great.

The IAR blamed it on tight inventory and rising mortgage rates.

The city of Chicago saw year-over-year home sales decrease 16.6 percent with 1,963 sales in September, compared to 2,355 a year ago. The median price of a home in the city of Chicago in September was $287,400 up 4.5 percent compared to September 2017 when it was $275,000.

September sales for the last 11 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: 1963 sales

Median prices for the last 11 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: $287,400

“The data shows a slowdown in closed sales in Chicago because inventory continues to fall, and people may be priced out of the few price bands where there is inventory,” said Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “Price continues to be key in current market conditions, particularly as interest rates continue to rise.”

“While price growth continues with modest gains, sales in both the Chicago Metro Area and Illinois have decreased on both a year-over-year and on a monthly basis” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “September’s sales were lower, but it is difficult to extract any trend from one month’s data and it will require more monitoring in the months ahead to determine longer-term market impacts.”

Market time statewide dropped to 48 days from 51 days last year.

The decline in sales wasn’t just in Chicago, the 9 county Chicagoland area saw sales decline 12.1%.

“Consumers this fall are confronted with fewer options when they are looking for a new home,” said Ed Neaves, Illinois REALTORS® president-elect and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “Low inventories, coupled with increases in interest rates, are making it much tougher for some buyers to make a move, even though the data suggests many very much do want to make a purchase.”

And for all the talk about higher rates, the average 30-year rose to just 4.63% from 4.55% in August but was up from 3.8% a year ago.

The rates didn’t spike to 5% until October.

Wouldn’t those who closed in September have been locked into their rates several months before?

And tight inventory is certainly nothing new. That’s been the story for over a year.

What caused the sudden slowdown in sales in September?

Was it a one-off?

Or are we entering into a new phase of the post-bust housing market?

Illinois home sales down in September; median prices show moderate gains [Illinois Association of Realtors, Press Release, October 19, 2018]

We chattered about this 3-bedroom fee simple townhouse with indoor/outdoor living at 820 W. Wolfram in Lakeview several times over the last 4 years.

It came on the market completely renovated in 2014.

The 2014 chatter is here.

Then, it returned to the market in April 2018 asking more than the 2014 sales price.

We chattered about it twice in 2018 including in June 2018. You can see our chatter here.

If you recall, this 6-unit complex was built in 1979.

This unit was a front, street facing unit, which was remodeled with all modern finishes.

It had a glass wall that opens to a protected, walled landscaped garden that faces the street.

The kitchen had white modern cabinets with Wolf, Bosch and Subzero appliances and “waterfall” countertops.

There were frosted sliding room doors and walls of marble.

The third bedroom was on the third floor with the other two bedrooms on the second floor.

This floor had walls of solid glass doors that opened and closed depending on how you want to define the space.

There was no basement.

The townhouse had central air and a parking space which appeared to be an outdoor space.

The listing made a big deal out of the fact that this townhouse is “fee simple” which means there’s no assessments.

Originally listed at $815,000 which was $40,000 over the 2014 purchase price, it finally sold 5 months later for $715,000.

That’s a loss of $60,000 for an apple-to-apple property (i.e. it had the same finishes and features.)

I haven’t cribbed about an apple-to-apple loss on a GreenZone property in a LONG time. Probably since the 2012-2013 era.

And this is the first post-housing crash property that I’ve covered where the owner took a big loss.

It’s just one property.

But is it another sign that the housing market is changing?

Are we entering into a new type of housing market for the first time since the bottom of the bust in 2012?

And are sellers (and buyers) prepared for where the housing market might go next? Buying and holding even just 3 to 5 years was easy over the last 5 years. Will it be so going forward?

Brad Lippitz at Compass Real Estate had the listing again. In 2014, he was also the owner. You can still see the pictures here.

Unit #F: 3 bedrooms, 2 baths, no square footage listed (but old listings show these townhouses as 1530 square feet)

• Sold in April 1990 for $360,000
• Sold in November 1993 for $197,000
• Sold in August 2013 for $80,000 (according to public records)
• Renovated
• Originally listed in June 2014 for $799,000
• Sold in August 2014 for $775,000
• Was originally listed in April 2018 at $815,000
• Reduced
• Sold in October 2018 for $715,000
• No assessments because it’s fee simple
• Taxes are now $11,220 (they were $6916 in 2014)
• Central Air
• Parking included
• Washer/dryer in the unit
• Bedroom #1: 17×15 (third floor)
• Bedroom #2: 12×11 (second floor)
• Bedroom #3: 12×11 (second floor)
• Terrace: 20×15

This 1-bedroom on the 42nd floor in The Legacy at 60 E. Monroe near Millennial Park in the Loop came on the market in June 2018.

The Legacy was built in 2009 and has 355 units and a parking garage. It’s a full service building which has both city and Millennial Park/lake views.

This unit has designer built, custom minimalist interiors.

It has wide plank light oak floors, custom cabinets and built-ins by Great Lakes Millworks.

There’s European lighting.

It has an ethanol fireplace enclosed in a glass cube.

The kitchen has white and wood modern cabinets with Bosch and Subzero appliances.

There are Kohler and Duravit fixtures.

This unit faces west so it has city views, not lake views.

It has a 4’9 x 9’5 private terrace.

The unit has central air, washer/dyer in the unit and parking is available to buy or rent in the building.

Originally listed in June 2018 for $639,000, it has been reduced $10,000 to $629,000.

That’s still $89,000 above the 2015 sales price of $540,000, which had the same fixtures and built-ins.

Can it get the premium over the 2015 price just 3 years later?

Eileen Brennan at Berkshire Hathaway KoenigRubloff has the listing. See the pictures here.

Or you can see it in person at the Open House on Oct 21 from 11 am to 1 pm.

Unit #4205: 1 bedroom, 1.5 baths, listing says “over 1000 square feet”

• Sold in September 2010 for $487,500 (included parking)
• Sold in October 2015 for $540,000 (did not include parking)
• Originally listed in June 2018 for $639,000
• Reduced
• Currently listed at $629,000
• Assessments of $537 a month (includes a/c, gas, doorman, cable, Internet, exercise room, pool, exterior maintenance, scavenger, snow removal)
• Taxes of $8677
• Central Air
• Washer/dryer in the unit
• No parking- but its available to buy or rent in the building
• Terrace: 4’9×9’5
• Bedroom: 11×17
• Living room: 17×14
• Kitchen: 8×10
• Galley: 8×10

This 2-bedroom vintage duplex up at 1408 W. Belden in Lincoln Park came on the market in August 2018.

Although the listing says this building was built in 1900, we last chattered about this unit in 2011 and, at that time, the listing says it was built in 1881.

See our chatter here.

The building has 5 units. Two of them, including this one, have private entrances on Belden. The other 3 simplex units have a common entrance on Southport (see our last chatter for the realtor’s notes on the building set-up.)

The listing says it has had a “2017 interior renovation.”

The unit has 12 foot vaulted ceilings and crown moldings on the first floor.

The first floor has a dining/sitting area, the living room and the kitchen along with arched doorways and a private back deck.

The kitchen has white cabinets, stainless steel appliances, a white tiled backsplash and what look like stone counter tops.

There’s some exposed brick walls.

The second floor has two bedrooms and a laundry room.

The master suite has a stand-up shower and a walk-in closet.

The unit has an enclosed garage parking spot that the 2011 listing says is in the old carriage house.

Originally listed for $780,000 in August 2018, it has been reduced $105,000 to $675,000.

But that is still $74,000 above the 2017 sales price of $601,000.

In this fall market, will it get the premium over the 2017 price?

Karin Melberg at Keller Williams Platinum Partners has the listing. See the pictures here.

#1R: 2 bedrooms, 2.5 baths, duplex up, no square footage listed

• Sold in May 1991 for $258,000
• Sold in August 1994 for $265,000
• Sold in February 1997 for $282,000
• Sold in August 2003 for $469,500
• Sold in September 2007 for $573,500
• Originally listed in June 2011 for $550,000
• Sold in November 2011 for $468,500
• Sold in February 2017 for $601,000
• Originally listed in August 2018 for $780,000
• Reduced several times
• Currently listed for $675,000
• Assessments are $209 a month (they were also $209 a month in 2011)(includes lawn care, scavenger, snow removal)
• Taxes are now $11,232 (they were $7445 in 2011)
• Central Air
• Washer/Dryer in the unit
• Looks like it’s now a gas fireplace but it was wood burning in 2011
• Garage parking included in 1881 carriage house
• Bedroom #1: 14×16 (second floor)
• Bedroom #2: 10×13 (second floor)
• Living room: 31×22 (main floor)
• Family room: 15×15 (main floor)
• Kitchen: 15×15 (main floor)

This 2-bedroom duplex up at 2343 N. Greenview in Lincoln Park came on the market in September 2018.

If it looks familiar, that’s because we chattered about it the last time it was on the market in 2015.

See our December 2015 chatter here.

If you recall, the listing said it was an “architect designed rehab.”

The unit has 20-foot high ceilings with a private balcony off the living room.

The kitchen has white cabinets and stainless steel appliances.

The bathroom was updated with a double vanity.

The second floor has a den and two bedrooms, both which have windows.

The listing says this unit at 1400 square feet is the “largest in the building.”

It has a parking space and central air, but no washer/dryer in the unit. It’s coin laundry in the building.

The unit has listed for $22,500 more than the 2015 selling price, at $350,000.

With its location near DePaul, is this a good condo for parents to buy for college students?

Matthew Druker at Baird & Warner has the listing. See the pictures here.

Unit #212: 2 bedroom, 1 bath, 1400 square feet, duplex up

• Sold in April 1993 for $170,000
• Sold in June 1996 for $177,500
• Originally listed in July 2015 for $359,000
• Reduced
• Was listed in October 2015 at $335,000
• Sold in January 2016 for $327,500
• Originally listed in September 2018 for $350,000
• Still listed for $350,000
• Assessments now $278 a month (they were $255 a month in 2015) (includes water, security system, exterior maintenance, scavenger, and snow removal)
• Taxes are now $4989 (they were $4396 in 2015)
• Central Air
• No washer/dryer in the unit
• Gated parking included
• Bedroom #1: 18×18 (second floor)
• Bedroom #2: 10×10 (second floor)
• Den: 10×8 (second floor)
• Living room: 20×13
• Kitchen: 9×8

We’ve been chattering about the possibility of 5% average mortgage rates for years here on Crib Chatter.

Every time the rates have gotten close, they have retreated…until now.

For the first time since 2011, 30-year average mortgage rates have hit 5%.

Just a reminder, but in August, the average 30-year fixed mortgage rate was 4.55% up from 3.88% in August 2017.

Most of the current buyers have likely locked in those lower August rates but moving forward, such as in January and February 2019, those buyers likely won’t have that same lower rate.

Some argue that 5% mortgage rates are still “cheap” compared to the 6%+ level of the pre-2011 period so what’s the big deal?

But home prices have now returned to 2007-2008 highs, or even exceeded them. 5% rates mean higher monthly costs.

How much would a standard 2/2 monthly mortgage payment rise with 5% rates?

This 2-bedroom in Michael’s Terrace at 1309 N. Wells in Old Town came on the market in June 2018.

The listing says it was “gut rehabbed.”

It has an east facing balcony and windows.

The kitchen has white cabinets, quartz counter tops and new stainless steel appliances.

It has hardwood floors in the living/dining room.

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

Originally listed in June for $419,000 it has been reduced to $414,900.

I ran the mortgage costs for this unit at 30-year rates of 4.55% and at 5% on Baird and Warner’s mortgage calculator.

At 4.55% with a 10% down payment, or $41,490, the monthly mortgage payment including taxes, PMI and insurance is $2671.04 (this doesn’t include the assessments):

• Principal: $1903.12
• Taxes: $494.92
• Ins/PMI: $273 (PMI = $152; INS = $1452 yearly)
• Total = $2671.04

At 5% with a 10% down payment:

• Principal: $2004.55
• Taxes: $494.92
• Ins/PMI: $273
• Total = $2772.46

The 5% rate is just $101.42 more a month.

Is the 5% rate a game changer in the Chicago market or is it much ado about nothing?

Patrick Santry at Coldwell Banker has the listing. See the pictures here.

Unit #907: 2 bedrooms, 2 baths, no square footage listed

• Sold in February 1995 for $122,000
• Sold in April 1999 for $195,000
• Sold in February 2004 for $280,000
• Originally listed in June 2018 for $419,000
• Reduced and raised
• Currently listed at $414,900 (includes garage parking)
• Assessments of $560 a month (includes doorman, exterior maintenance, scavenger and snow removal)
• Taxes of $5939
• Central Air
• Washer/dryer in the unit
• Bedroom #1: 15×11
• Bedroom #2: 13×11
• Living room: 19×16
• Kitchen: 13×7