Crib Chatter

July’s sales numbers were highly anticipated due to the expiration of the tax credits at the end of June.

Similarly to other parts of the country, as the tax credit pulled sales forward in the spring, sales sank in Chicago, the Chicagoland area, and statewide in July.

From the Illinois Association of Realtors:

In the city of Chicago, July total home sales (single-family and condominiums) were down 19.5 percent to 1,589 sales compared to 1,975 homes sold in July 2009. The city of Chicago median price in July 2010 was $196,500, down 19.8 percent compared to $245,000 a year ago in July 2009.

“In the city of Chicago, July’s reduction of units sold by 19 percent seems consistent with what Chicago REALTORS® anticipated for the summer as buyers on the fence moved up their purchases to earlier in the season in order to qualify for the federal tax credits then-offered to move-up or first-time homebuyers,” said REALTOR® Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey Real Living, Chicago. “While it still remains a great time to buy, buyers are guarded as they consider their own financial stability and job security in the current market, hindering many from making a purchase.”

Statewide, sales in July were down 29.7%. In the Chicagoland area, they were down 25.1%.

Here are the statistics for Chicago for July for the last 4 years:

• July 2010: 1589 sales
• July 2009: 1975 sales
• July 2008: 2167 sales
• July 2007: 2738 sales

“The hangover from the expiration of the tax credit in April may extend into fall with forecasts for sales on an annual basis for the next three months indicating a continuation of the July experience,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The anemic growth of private sector jobs is dampening chances for a more robust recovery. The expectation has to be that the slowing of the national economy will affect Illinois’ growth prospects over the remaining months of the year.”

Post-Tax Credit Pause in Illinois Home Sales Activity for July; Year-to-Date Sales Remain Up 15.0 Percent Statewide [Illinois Association of Realtors, Press Release, August 24, 2010]

We chattered about this 2-bedroom top floor unit at 817 W. George in Lakeview several times in the past few months.

See the June 2010 chatter and pictures here.

It had many of its vintage features still intact including built-in bookcases and a dining room hutch, beamed ceilings and stained glass.

But it also had many modern upgrades like central air, washer/dryer in the unit and a Viking stove in the kitchen.

The only amenity it was missing was deeded parking.

It recently sold for $41,000 under the 2005 purchase price.

Ed Jelinek at Coldwell Banker had the listing.

Unit #3W: 2 bedrooms, 1 bath, no square footage listed

• Sold in August 2001 for $315,000
• Sold in April 2005 for $366,000
• Originally listed in February 2010 for $375,000
• Reduced
• Was listed in April 2010 for $349,900
• Reduced
• Was listed in June 2010 for $335,000
• Sold in August 2010 for $325,000
• Assessments of $345 a month (includes heat)
• Taxes of $4301
• Central Air
• In-unit Washer/Dryer
• No parking
• Bedroom #1: 11×12
• Bedroom #2: 9×11
• Family/dining room: 11×17

We first chattered about this huge 2-bedroom unit at 60 W. Erie in River North in March 2008.

See our March 2008 chatter here.

Back in 2008, the listing said the overseas owner wanted out.

The unit has been on and off the market since then but apparently, according to the listing, the overseas owner still wants out.

It has also been reduced $140,000 and is now listed for $136,500 under the 2004 purchase price.

60 W. Erie is a boutique high rise building built in 2004 with only 24 units.

The unit has 9 foot ceilings and city views. It also has a 15×15 terrace.

The kitchen has stainless steel appliances and granite counter tops and the baths are marble.

Is this unit now priced to sell?

Katherine Chez at Coldwell Banker still has the listing. See the pictures here.

Unit #1102: 2 bedrooms, 2.5 baths, 2157 square feet

• Sold in March 2004 for $926,500
• Was listed in March 2008 for $930,000 included 1 car parking
• Withdrawn
• Was listed in June 2010 for $890,000
• Reduced
• Currently listed for $790,000 (includes 2 side-by-side parking spaces)
• Assessments of $1369 a month (includes gas and doorman)
• Taxes of $10304
• Central Air
• Washer/dryer in the unit
• Bedroom #1: 18×10
• Bedroom #2: 12×11
• Den: 15×10

This 4-bedroom home at 1215 W. Fletcher in Lakeview went under contract in just 9 days.

The listing says the house has been “totally redone” and has a new kitchen and baths.

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

3 out of the 4 bedrooms are on the second level.

There is a large 25×20 media room in the lower level.

The house has central air and a 2 car garage on a standard 25×125 landscaped lot.

It is also listed for about $166,000 over the 2005 purchase price.

Kathleen Fote at @Properties has the listing. See the pictures here.

1215 W. Fletcher: 4 bedrooms, 3.5 baths, 2 car garage, no square footage listed

• Sold in January 1988 for $108,000
• Sold in May 1992 for $310,000
• Sold in March 1994 for $338,000
• Sold in February 2001 for $560,000
• Sold in July 2005 for $734,000
• Currently listed for $899,999
• Under Contract
• Taxes of $10,138
• Central Air
• Bedroom #1: 19×16 (second level)
• Bedroom #2: 12×9 (second level)
• Bedroom #3: 10×9 (second level)
• Bedroom #4: 12×10 (lower level)
• Media room: 25×20 (lower level)

Maybe the New York Times has been reading this blog because today it is talking about what to expect from housing over the next few years and decades- a topic we’ve been bandying about recently:

“There is no iron law that real estate must appreciate,” said Stan Humphries, chief economist for the real estate site Zillow. “All those theories advanced during the boom about why housing is special — that more people are choosing to spend more on housing, that more people are moving to the coasts, that we were running out of usable land — didn’t hold up.”

Instead, Mr. Humphries and other economists say, housing values will only keep up with inflation. A home will return the money an owner puts in each month, but will not multiply the investment.

Dean Baker, co-director of the Center for Economic and Policy Research, estimates that it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005. After adjusting for inflation, values will never catch up.

“People shouldn’t look at a home as a way to make money because it won’t,” Mr. Baker said.

We’ve also been chattering about accidental landlords, many of whom are waiting for prices to “come back.”

How long will they be waiting? According to this article, a long, long time.

“The experience we had from the late 1970s to the late 1990s was an aberration,” said Barry Ritholtz of the equity research firm Fusion IQ. “People shouldn’t be holding their breath waiting for it to happen again.”

Set against this dismal present and a bleak future, buying a home is a willful act of optimism. That explains why Adam and Allison Lyons are waiting to close on a $417,500 house in Deerfield, Ill.

“We’re trying not to think too far ahead,” said Ms. Lyons, 35, an information technology manager.

The couple’s first venture into real estate came in 2003 when they bought a condo in a 17-unit building under construction in Chicago. By the time they moved in two years later, it was already worth $50,000 more than they had paid. “We were thinking, great!” said Mr. Lyons, 34.

That quick appreciation started them on the same track as their parents, who watched the value of their houses ascend for decades. The real estate crash interrupted that pleasant dream. The couple cannot sell their condo. Unwillingly, they are becoming landlords.

“I don’t think we’re ever going to see the prosperity our parents did, but I don’t think it’s all doom and gloom either,” said Mr. Lyons, a manager at I.B.M. “At some point, you just have to say what the heck and go for it.”

Your Home as a Sure Nest Egg? That Era is Over, Analysts Say [New York Times, David Streitfeld, Aug 22, 2010]

This 4-bedroom unit in The Eddystone at 421 W. Melrose in Lakeview, was built in 1928, during the final hey-day of lake front construction in Chicago before the Great Depression ground everything to a halt.

It has amazing vintage details from wood paneled walls, plaster ceilings, leaded glass, and original moldings.

They don’t build them like this anymore.

We last chattered about it in November 2008. See our prior chatter and pictures here.

At that time, there were no pictures of the kitchen in the listing because it was “in progress” of being renovated.

The current listing shows the new kitchen which now sports stainless steel appliances and granite counter tops.

This unit does not have central air and does not have parking (but that is available for lease next door.)

It has also been reduced $891,000 since 2008.

Is this a steal now?

Millie Rosenbloom at Baird & Warner now has the listing. See the pictures here. 

Unit #14-15C: 4 bedrooms, 4 baths, no square footage listed

• Sold in February 1999 for $450,000
• Was listed in November 2008 for $1.89 million
• Reduced
• Withdrawn
• Re-listed in July 2010 for $1.1 million
• Reduced
• Currently listed at $999,000
• Taxes of $11,417
• Assessments of $2,726 a month
• No central air
• Fireplace
• Parking is leased next door for $200 a month
• Washer/Dryer now in the unit
• Bedroom #1: 18×13 (second floor)
• Bedroom #2: 15×10 (second floor)
• Bedroom #3: 15×13 (second floor)
• Bedroom #4: 15×13 (main floor)

We first chattered about this 1015 square foot 1 bedroom unit at the new construction luxury highrise 10 E. Delaware in the Gold Coast when it first came on the market as a flip in February 2010.

See February 2010 chatter here.

Back then, we were chattering about it being an $850k 1-bedroom. Now it is a $799k 1-bedroom.

If you recall, the unit has all the bells and whistles of luxury new construction, including Poggenpohl cabinetry, Miele and SubZero appliances, but also has a 560 square foot terrace, complete with water, gas and electricity.

From the pictures with the latest listing, it looks like it has been staged and the terrace has been landscaped.

The price was also reduced $50,000 from February. And the parking may now be included (but I can’t tell for sure from the public listing.)

In February, many of you mocked the pricing on the listing, with alternative prices ranging from $450k to $549k being thrown out. The listing was cancelled shortly after we chattered about it. 

It was relisted in July.

Who’s having the last laugh now?

The unit is now under contract.

Anne Victorin at @Properties still has the listing. See the pictures here.

Unit #9A: 1 bedroom, 1.5 bath, 1015 square feet

• Sold in December 2009 for $650,365 (looks like it included the parking spot)
• Was listed in February 2010 for $849,000 (parking is extra)
• Withdrawn
• Re-listed in July 2010 for $799,000 (can’t tell if parking is included)
• Under Contract
• Assessments of $412 a month (includes heat, a/c, doorman, pool)
• Taxes are “new”
• Washer/Dryer in the unit
• Living room: 16×14
• Kitchen: 10×8
• Bedroom: 12×13
• Den: 9×9

Many buyers are eager to own a 3-bedroom duplex up such as this one at 1310 W. Fletcher in Lakeview versus the more common, and usually cheaper, duplex down.

Recently, it seems like there have been more of the duplex ups on the market.

This top floor unit has hardwood floors throughout and two outdoor spaces, including what looks to be a rooftop deck.

Built in 1998, it has some features you don’t find in the more recent construction including 3 bathrooms (instead of 2) and 2 car parking (instead of 1.)

The kitchen has stainless steel appliances and granite countertops.

The master bedroom is on the second floor, along with a small den.

On and off the market since January, it has now been reduced $95,000 and is a “short sale.”

Is this a deal?

Nancy Lundquist at Jameson has the listing. See the pictures here.

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

• Sold in September 1999 for $409,000
• Listed in January 2010 for $545,000
• Reduced
• Currently listed as a “short sale” for $449,900
• Assessments of $218 a month
• Taxes of $6442
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 14×13 (second floor)
• Bedroom #2: 13×11 (first floor)
• Bedroom #3: 16×14 (first floor)
• Den: 14×8 (second floor)

Continuing our look at some properties outside the city limits…

This vintage 3-bedroom Victorian at 3233 Cuyler in Berwyn is located in South Berwyn, which is the original development for Berwyn.

Berwyn has the largest collection of bungalows in the nation, but it also sports a wide diversity of housing designs such as this 1903 Victorian with its front porch.

Located just a few blocks from the metra stop, the listing for this home says it has been restored.

It has crown molding and little details like its original doorknobs.

There are also hardwood floors throughout.

Built on a 37.5×125 lot, it has a 2 car garage and central air.

There is, however, just 1 bathroom.

It is listed $26,000 under the 2006 purchase price.

Is this an attractive alternative to a city condo?

Aaron Airhart at Re/Max Properties has the listing. See the pictures here.

3233 Cuyler: 3 bedrooms, 1 bath, no square footage listed, 2 car garage

• Sold in August 2003 for $184,000
• Sold in October 2006 for $265,000
• Currently listed for $239,000
• Taxes of $5298
• Central Air
• Bedroom #1: 15×12
• Bedroom #2: 15×8
• Bedroom #3: 13×12

This 2-bedroom authentic loft at the Gotham Lofts at 417 S. Jefferson was recently reduced $10,000.

It is now priced $27,500 under the 2008 purchase price.

The Gotham Lofts consists of 2 buildings and was a former manufacturing facility for the Western Electric Company that made switchboards and fire alarms.

It was converted into lofts in 2000 and much of the original brickwork and beams remain. Some of the timber ceilings were too heavily damaged and could not be saved (but it depends on what floor and building you are in.)

This loft does not have timber ceilings but several wood exposed beams run the length of the unit.

The kitchen has stainless steel appliances and granite counter tops.

The unit has other bells and whistles buyers are looking for with central air, in-unit washer/dryer and garage parking.

The loft also has views of the downtown, including the Willis Tower, from the balcony.

At this reduced price in this neighborhood, is this a deal?

Sheri Blakely at Sudler Sotheby’s has the listing. See more pictures here.

Unit #205: 2 bedrooms, 2 baths, 1255 square feet

• Sold in July 2000 for $260,500
• Sold in April 2002 for $270,000
• Sold in July 2005 for $315,000
• Sold in December 2008 for $302,500
• Originally listed in June 2010 for $285,500 (included the parking)
• Listed in July 2010 for $255,000 (parking $30,000)
• Reduced
• Currently listed for $245,000 (parking $30,000)
• Assessments of $457 a month
• Taxes of $4384
• Central Air
• In-unit washer/dryer
• Bedroom #1: 13×12
• Bedroom #2: 14×10