Crib Chatter

CoreLogic released its February single family home sales data which showed Chicagoland prices dropped 10.4% year over year, the second largest drop in the country. (Chicagoland extends out to Naperville and Joliet.)

But CoreLogic also provided data stripping out the distress sales- which would result in home prices declining just 0.37% year over year.

The big problem with stripping out the distress sales is that in February, they were about 50% of all sales.

One state politician is trying to legislate what constitutes a comp for the purposes of the appraisal.

From the Tribune:

Earlier this year, Rep. LaShawn Ford (D-Chicago) introduced legislation in Springfield that would bar real estate appraisers from using the sale price of a home sold at judicial sale — in other words, a foreclosed home — for 12 months after the date of the sale. Such a change to the state’s Real Estate Appraiser Licensing Act would be repealed five years after it was adopted.

Ford, whose district includes parts of Chicago’s West Side and portions of several western suburbs, is a broker/owner of a real estate firm, so he has seen the effect of foreclosures on the neighborhoods he represents, as well as in his business.

“You have homeowners who want to sell their homes or want to refinance and they can’t do it,” Ford said.

There’s one problem with Ford’s proposal, though. Appraisers are licensed by the state of Illinois but follow uniform federal guidelines that dictate that they analyze available comparable sales.

“It would lead to a misleading report,” said Chip Wagner of A.L. Wagner Appraisal Group Inc. in Naperville. “You can’t overlook any of the factors in the marketplace that are influencing factors. It sounds like a good idea in fairness to homeowners, but the appraisers that follow that would be in (danger) of losing their licenses.”

Joseph Magdziarz, president of Appraisal Institute, an industry trade group, said if a distressed sale is going to be considered, it’s up to the appraiser to investigate whether that property was sold to investors or to owner-occupants, and the property’s condition.

“Just because it’s a sale doesn’t make it comparable,” said Magdziarz, who is an appraiser in Rockford.

But, he noted, if the neighborhood has a preponderance of distressed properties in similar condition, “you can’t completely disregard what’s going on in the market.”

The trade group does not support any bill that’s meant to govern what appraisers can and cannot consider in their report, he added.

The CoreLogic report illuminates several issues facing the Chicago market:

1. The growing numbers of distress sales
2. Price declines are still occurring (distressed property or not)

Should distressed property sales be comps?

Chicago area home prices get boost with new math [Chicago Tribune, Mary Ellen Podmolik, April 7, 2011]

This 4-bedroom penthouse at 1400 S. Michigan in the South Loop has been on and off the market since 2008.

Since August of 2010 it has been reduced $400,000.

At 3471 square feet, it is one of only 2 units on the penthouse floor.

It is on the northeast and southeast corner and has not just 1, but 2, 600 square foot terraces with city and lake views.

There are 14 foot ceilings throughout.

The listing says there are “italian finishes” but unfortunately the listing pictures don’t show the kitchen or the baths.

At $432 a square foot, is this unit a steal?

Carl Krkles at Weichardt Realtor has the listing. See the pictures (what there are of them) here.

Unit #2801: 4 bedrooms, 4.5 baths, 3471 square feet

• New construction
• Originally listed in October 2008
• Listed in August 2010 for $1.9 million
• Reduced
• Currently listed for $1,499,990
• Assessments of $1218 a month (includes heat, gas, air conditioning, doorman, pool)
• Taxes of $18,278
• Central Air
• Washer/Dryer in the unit
• 4 car parking available for extra
• Bedroom #1: 15×19
• Bedroom #2: 11×13
• Bedroom #3: 11×13
• Bedroom #4: 11×11

This vintage 2-bedroom at 3705 N. Lakewood in Lakeview is close enough to Wrigley Field that you can hear the roar of the crowd during game days.

This building was converted to condos in 2007 and was rehabbed with new electric, plumbing, roof and windows.

The unit has the features many buyers are looking for including central air, washer/dryer in the unit and the coveted deeded parking space.

It has 9 1/2 ceilings with south and west exposures.

The kitchen has features from newer construction of that era including cherry cabinets, granite counter tops and stainless steel appliances.

This unit is priced $10,100 under the 2007 purchase price.

Is this a good starter property in a popular neighborhood?

Nick Patterson at Kale Realty has the listing. See more pictures here.

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

• Sold in April 2007 for $350,000
• Originally listed in March 2011 for $344,900
• Reduced
• Currently listed for $339,900
• Assessments of $182 a month
• Taxes of $4445
• Central Air
• Washer/Dryer in the unit
• Parking included
• Bedroom #1: 12×10
• Bedroom #2: 12×9
• Living room: 14×13
• Dining room: 13×11
• Kitchen: 12×10

We chattered about this 3-bedroom duplex up at 2750 N. Dayton on the border of Lincoln Park and Lakeview at Diversey in January 2011.

See our prior chatter here.

In our prior chatter, someone guessed it would sell around $425k and Clio liked it so much he expressed an interest in moving in (if only he could sell his current place.)

After 13 months on the market it finally sold for $20,000 under the 2002 purchase price at $445,000.

That was 17% under the 2005 purchase price. 

Located near the Brown line and the shops/restaurants of south Lakeview/north Lincoln Park (and the soon-to-open Trader Joes), at 2000 square feet the unit was larger than many nearby townhomes.

2 out of the 3 bedrooms were on the second floor along with a lofted family room and a 300 square foot private roofdeck.

The unit also had a second deck, cathedral ceilings and skylights.

The kitchen had stainless steel appliances and granite counter tops.

Mario Greco at Prudential Rubloff had the listing.

Unit #8: 3 bedrooms, 2 baths, 2000 square feet

• Sold in May 1996 for $285,000
• Sold in November 2002 for $465,000
• Sold in January 2005 for $536,000
• Originally listed in March 2010 for $549,000
• Reduced several times
• Was listed in January 2011 for $449,000 (plus $30,000 for parking)
• Sold in April 2011 for $445,000 (looks like it included the parking)
• Assessments of $233 a month
• Taxes of $7659
• Private roof deck
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 16×14 (main floor)
• Bedroom #2: 12×11 (second floor)
• Bedroom #3: 12×11 (second floor)
• Family room: 19×18 (lofted second floor)

This 3-bedroom at 717 W. Briar in Lakeview has been on the market since February 2011.

The building was converted into condos in 2002/2003 and the listing implies that the finishes are not at the level they should be as it offers a “$5,000 upgrade credit.”

Yet the kitchen has stainless steel appliances and granite counter tops.

The unit has lofty features like high ceilings, exposed brick and ductwork.

It also has central air, washer/dryer in the unit and garage parking.

The unit is listed $5,100 under the 2003 purchase price.

Is this a deal?

Jeffrey Atkinson at Keller Williams Gold Coast has the listing. See the pictures here.

Unit #2W: 3 bedrooms, 2 baths, 1500 square feet

• Sold in January 2003 for $385,000
• Sold in October 2005 for $440,000
• Originally listed in February 2011 for $389,900
• Reduced
• Currently listed at $379,900
• Assessments of $210 a month
• Taxes of $6375
• Central Air
• Washer/Dryer
• Bedroom #1: 18×12
• Bedroom #2: 12×11
• Bedroom #3: 10×9

Both Crilly Court and Gaslight Court in Old Town are historic condominium associations just a few blocks from each other on the same street.

While we have seen 3 bedroom, 2 bath units in the Wells Street building of Crilly Court go under contract within a week or two 3 times in the last 6 months, those trying to sell in Gaslight Court have had a tougher go of it.

This 3 bedroom, 2 bath at 1407 N. Wells in Gaslight Court has been on the market since June 2010.

It has 10 foot ceilings, beamed ceilings and the original stone mantel fireplace.

The kitchen has white cabinets and stainless steel appliances.

This third floor unit also has a 15×15 private deck overlooking Wells Street.

It has central air and a washer/dryer in the unit (just like the Crilly Court units).

Neither one has parking available. And the assessments are similar.

Crilly Court was converted into condos in 2007. Gaslight Court was converted in 2000.

See the Crilly Court 3-bedroom that is now under contract here.

Does Crilly Court sell quicker simply because it’s newer?

Steven Malone at Jameson Sotheby’s has the listing. See the pictures here.

Unit #3F: 3 bedrooms, 2 baths, 1600 square feet

• Sold in August 2000 for $250,000
• Sold in August 2006 for $435,000
• Originally listed in June 2010
• Currently listed at $499,000
• Assessments of $376 a month
• Taxes of $4768
• Central Air
• Washer/Dryer in the unit
• No parking
• Bedroom #1: 15×11
• Bedroom #2: 13×10
• Bedroom #3: 10×8

There’s been a lot of chatter about what a “worker’s cottage” is recently but nothing personifies it better than the actual thing which can be found in the Pullman Historic District on the South Side.

This 2-bedroom worker’s cottage at 11405 S. Saint Lawrence has recently been restored with new plumbing, electric, furnace and air conditioning.

Originally built in 1882 on a 16×124 lot, Pullman was considered worth the higher rent, according to the Pullman historic site, than that which was charged compared with the rest of the city because every single Pullman property had indoor toilets and running water, which was rare for working class housing.

This rowhouse has hardwood floors throughout and skylights, which were common in Pullman design.

It’s square footage, at only 960 square feet, reflects that it was built for “workers” and not the skilled craftsmen or executives (both of which had larger homes.)

From the Pullman State Historic Site:

The quality of company owned and maintained housing was uncommonly good for worker housing. It was Pullman’s philosophy that happy workers would make more productive workers. A majority of the Pullman employees lived in the houses containing two to seven rooms. Foundations and some ornamentation was made of stone and the pitched roofs were slate. The homes, produced in blocks of two or more, provided economy of construction and maintenance. Every home had direct access to a private yard, woodshed and a paved alley. The alley served as access for vendors and trash collection, a company service included in the rent.

The historic plaque for this rowhouse lists the professions of those who once lived there as blacksmith, engineer, clerk and die maker.

This rowhouse has had its facade historically restored- not an easy feat. The Pullman Historic Foundation only allows historic restorations to the front of the buildings- on the inside and the backyard you can do whatever you want. The Foundation has information on the paint colors that need to be used etc. They are strict about accurate historic restorations.

The Pullman neighborhood has 2 Metra stops that get you downtown in about 20 minutes.

Is this worker’s cottage a good starter home?

Michael Wolski at Coldwell Banker has the listing. See more pictures here.

11405 S. Saint Lawrence: 2 bedrooms, 1.5 baths, 960 square feet, 1 car garage

• Sold in April 1996 for $59,000
• Sold in October 2005 for $150,000
• Bank owned in April 2009
• Sold in August 2009 for $22,000
• Originally listed in February 2010 for $133,000
• Reduced
• Currently listed for $128,900
• Taxes of $1491
• Central Air
• Bedroom #1: 15×13 (second floor)
• Bedroom #2: 15×13 (second floor)
• Living room: 15×13
• Kitchen: 15×13

Crain’s is reporting that a 4-bedroom penthouse in the Four Seasons Hotel building at 132 E. Delaware could become the second most expensive condo ever sold in Chicago.

Currently listed at $9,950,000 the condo went under contract after just 3 weeks on the market.

The buyer could not be determined, but people familiar with the transaction said the price is more than $9 million, slightly less than the list price of just under $10 million.

The seller, Jeffrey Levitetz, chairman of a wholesale food company, paid $4 million for the lavish unit in June 2006. The price doesn’t include the roughly $5 million he spent on renovations, sources say.

According to Crain’s this sale would put it at the second most expensive condo to ever sell in the city (after Vince Vaughn’s Palmolive penthouse- which media reports put at anywhere from $10 million to $12 million.)

The unit has north, south and east city and lake views.

It has 11 foot ceilings and a wood burning fireplace.

There is no deeded parking with the unit but there is unlimited rental parking available.

The local high-end market has struggled in recent years because of a glut of unsold inventory and buyers’ difficulty obtaining “jumbo” loans, or mortgages above the area’s $417,000 limit on loans that government-backed Freddie Mac and Fannie Mae will buy.

The transaction doesn’t signal a recovery is near, says James Kinney, vice-president of luxury sales at Chicago-based Baird & Warner Inc., who isn’t involved with the deal.

“One sale doesn’t make a trend,” he says. “But it does signify that there’s still people looking for unique, high-end spaces.”

Gold Coast unit slated to sell for more than $9 million [Crain’s Chicago Business, Andrew Schroedter, April 5, 2011]

Pamela Miles at Prudential Rubloff has the listing. Ogle the pictures here.

Unit #6602: 4 bedrooms, 3.5 baths, no square footage listed

• Sold in July 1989 for $1,597,000
• Sold in June 2006 for $4 million
• Currently listed for $9,950,000
• Under contract
• Assessments of $4524 a month (includes cable, doorman)
• Parking is rental at the range of $289-$380 a month
• Taxes of $50,679
• Bedroom #1: 28×39
• Bedroom #2: 18×18
• Bedroom #3: 18×21
• Bedroom #4: 24×22

The Metro, at 1200 W. Monroe, is a midrise building built in 2003 in what used to be the far edge of the West Loop but now is closer to the center of action thanks to a further push of building to the west.

At the corner of Monroe and Racine the east facing units have downtown views.

This 2-bedroom unit is a west facing unit and has been on the market for a year.

It has hardwood floors in the main living space.

The kitchen, which is open to the living space, has granite counter tops and stainless steel appliances.

It has central air, washer/dryer in the unit and garage parking is available.

This unit is listed $20,000 under its 2006 purchase price.

These units were originally sold as starter condos. Does this make a good starter condo in today’s market?

Stacy Braack at Southport Sotheby’s has the listing. See the pictures here.

Unit #413: 2 bedrooms, 2 baths, no square footage listed

• Sold in July 2003 for $278,500
• Sold in May 2006 for $335,000
• Neither sales shows deeded parking included
• Originally listed in April 2010
• Was listed in September 2010 for $304,900
• Reduced
• Currently listed for $285,000 (plus $25,000 for parking)
• Assessments of $382 a month (includes a/c, doorman, cable, gas)
• Taxes of $3641
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 12×11
• Bedroom #2: 10×10
• Living room: 15×16
• Kitchen: 13×8

This 3-bedroom single family home at 2164 W. Leland in Lincoln Square recently came on the market.

It is in a prime Lincoln Square location just a block and a half to the shops and restaurants on Lincoln and also easy access to several brown line El stops.

The house has had updates including in the kitchen which is custom with concrete counter tops and stainless steel appliances. (According to the 2008 listing- those updates had already been done by the time of that sale.)

The upstairs bathroom has a double vanity and skylights along with a claw foot tub.

Built on an oversized 37.5×123 lot, the house has a two car garage and central air/space pak (I can’t tell if it has both of those or just one of those.)

The basement is finished and has a half bath and a recreation room and office.

Listed $6500 under the 2008 price, will this sell quickly given its price and location?

Eric Rojas at Prudential Rubloff has the listing. See more pictures here.

2164 W. Leland: 3 bedrooms, 2 full and 2 half baths, 2 car garage, no square footage listed

• Sold in August 1995 for $209,000
• Sold in October 1997 for $264,500
• Sold in August 2008 for $805,500
• Currently listed for $799,000
• Taxes of $7925
• Central Air/Space Pak
• Bedroom #1: 12×15 (second floor)
• Bedroom #2: 12×13 (second floor)
• Bedroom #3: 11×12 (second floor)
• Recreation room: 15×27 (lower level)