Crib Chatter

This 4-bedroom single family home at 1918 W. Melrose tells the tale of what has happened to the Chicago housing market, and the economy, since spring of 2008.

In May of 2008, when this house was first listed, prices were holding fairly well on the north side of the city.

9 months later, this home is still waiting for a buyer and has been reduced by $175,100.

It is now listed for $60,100 under the 2006 sales price.

Is this home a “deal” at this price?

Ken Jungwirth at Rubloff has the listing. See the pictures, virtual tour and a floor plan here.

See the property website here.

1918 W. Melrose: 4 bedrooms, 3 baths, 2 car garage, no square footage listed

• Sold in May 1993 for $230,000
• Sold in April 2002 for $534,000
• Sold in June 2006 for $810,000
• Originally listed in May 2008 for $925,000
• Reduced several times
• Currently listed for $749,900
• Taxes of $10,754
• Finished basement with wine cellar
• Air conditioning
• Loft
• Media room

We’ve been chattering about rent versus owning comparisons since Crib Chatter first started in 2007.

But lately, the rental equation has gotten a lot more juicy as landlords have been throwing incentives to try and get their units rented.

Just how good is it out there for renters?

The RedEye investigated:

How would you like to live in a two-bedroom, two-bathroom condo, complete with gleaming hardwood floors, granite countertops, stainless steel appliances, a Jacuzzi tub and–drumroll, please–an in-unit washer-dryer?

Sound out of your league?

Maybe not, if you’re a renter currently in the market for a new apartment. A silver lining of the economic crisis is that there are some great deals on apartments and condo rentals.

For example, the aforementioned condo, located at 2001 W. Jarvis Ave. at the northern edge of the city in Rogers Park, is offered at $1,100 monthly rent, plus two months free rent on an 18-month lease, and no security deposit.

The gut-rehab was developed as a condo building geared toward first-time home buyers, but all the units were converted to rentals in the fall of 2007, when it started to become difficult for people to get loans, said James Osier, a Realtor with brokerage firm Lohan Realty.

Despite the rent incentives and the condo’s bells and whistles, Osier said he’s had a hard time finding tenants.

“I’ve been racking my brain,” Osier said, “and the only thing I can think of is that people are staying put.”

The large luxury apartment buildings are offering several months off of rent, free gym memberships, flat screen tvs and other incentives.  But the market favors renters right now. There is too much supply and not enough demand.

Though winter is always slow for renting, demand for apartments is weaker than usual because fewer people are coming to Chicago for jobs, and those already here are staying put or saving money by moving in with roommates or their parents, said Maurice Ortiz, marketing director of the Apartment People, a Lakeview apartment search service.

“It’s a great time to be renting,” Ortiz said.

Planned Properties, which manages 26 buildings in Lincoln Park, Lakeview and the Gold Coast, for the first weekend in February threw in a free 32-inch LCD TV, Blu-ray player or Wii system if renters signed a 12-month lease on any one of 10 apartments.

To directly address economic woes, Planned Property recently launched a rental assurance guarantee, which states that any new tenants who lose their jobs while under a lease with Planned Property can break their lease, so long as they show proof they were laid off and filed for unemployment.

“We were sensing a lot of fear out there, a lot of people were shaky about making the commitment because they’d heard rumors of layoffs at their company,” said Dan McDonough, advertising and marketing director for Planned Properties.

April is historically the start of a busy rental season in Chicago (and one of the “peak” months.) But landlords don’t sound so positive this year.

“This is uncharted territory now,” said Rick Mroczkowski, leasing manager for Prospect Equities, a real estate brokerage in Lincoln Park. “I have no idea what’s going to happen.”

Rent-O-Rama: Looking for an apartment? You’ve got plenty to choose from [RedEye, By Alexia Elejalde-Ruiz, Feb 26, 2009]

We last chattered about this 11-unit modern boutique building called Case Study, at 156 W. Superior, in River North in September 2008.

See our prior chatter and pictures here.

This 3-bedroom modern unit has stained concrete floors.

It was withdrawn from the market and recently re-listed at $120,000 less than the prior price.

Jena Radnay at @Properties has the listing. See the pictures here.

Unit #601: 3 bedrooms, 2.5 baths, 3000 square feet

• Sold in March 2006 for $1,289,500
• Was listed in September 2008 for $1,649,000 (parking included)
• Withdrawn
• Currently listed for $1,529,000 (parking included)
• Assessments of $602 a month
• Taxes of $17,871
• Direct elevator
• Winner of architectural awards

We’ve chattered about 1-bedrooms for $300,000, but what about the $800,000 2-bedroom?

This penthouse duplex unit at 1852 N. Halsted in Lincoln Park is priced at $799,000 – a price you could buy a similarly sized single family home in parts of Lakeview and North Center for.

What’s the market for a condo at this price in Lincoln Park?

There’s no square footage listed but it has an upstairs family room that looks over the living room (as it has 20 foot ceilings.)

• Living room: 18×18
• Kitchen: 12×12
• Family room: 17×13
• Bedroom #1: 14×12
• Bedroom #2: 12×10

Eudice Fogel at Rubloff has the listing. See the pictures and a virtual tour here.

See the property website here.

Unit #3: 2 bedrooms, 2 baths, family room, no square footage listed, duplex up

• Sold in April 1999 for $397,000
• Currently listed for $799,000 (parking included)
• Assessments of $145 a month
• Taxes of $5712
• Fireplace
• Wolfe & Miele appliances in the kitchen

For many months we’ve been watching sales of single family and condos in Chicago fall sharply but prices remained elevated.

That looks like it’s about to change.

In January, median price finally followed sales to the downside as it fell to $206,250 from $290,000 in January of 2008.

Sales sank another 23.5% to 888 properties from 1,161 in January 2008.

“Recent good news about the federal stimulus law combined with President Obama’s plan to minimize foreclosures offer attractive incentives for first-time buyers and assistance for homeowners facing foreclosure,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®.

“The results of the January sales survey confirm the level of recent buyer activity has been tentative and anemic. At the same time more and more sellers have reached the lowest price point at which they are willing or able to sell their home,” said David Hanna, president of the Chicago Association of REALTORS®.

“We wholeheartedly welcome the remedies such as the $8,000 tax credit for first-time home buyers in the 2009 stimulus package and the Obama administration’s most recent announcement for homeowner and foreclosure relief.”

Statewide Home Sales Down in January Compared to a Year Ago
Illinois Median Price at $149,900 [Illinois Association of Realtors Press Release, Feb 25, 2009]

We’ve chattered before about short sales in 310 S. Michigan, the renovated historic building across from Millennium Park, even though the building only started closings about a year ago.

See our September 2008 chatter and pictures here.

Other owners are still trying to get out of the building.

This 1-bedroom unit has been on the market since July 2008. It’s been reduced $36,000.

Here’s its history:

Unit #806: 1 bedroom, 1 bath, 791 square feet

• Sold in March 2008 for $374,500
• Listed in July 2008 for $335,000
• Reduced
• Currently listed for $299,000 (parking is extra)
• Assessments of $340 a month
• Taxes are “new”
• Pam Sullivan at Coldwell Banker has the listing. See the pictures here.

Unit #1206, which was in short sale in September 2008, has been reduced by $28,000.

Unit #1206: 1 bedroom, 1 bath, 791 square feet

• Sold in February 2008 for $358,500 
• Was listed in March 2008 for $349,000
• Reduced
• Was listed in “short sale” in September 2008 for $298,000 (parking is extra)
• Reduced
• Currently listed for $270,000 and “new price approved by bank”
• Assessments of $305 a month
• Taxes are “new”
• Exit All Pro Realty still has the listing. See more pictures here.

We’ve chattered several times about the $300,000 (and up) 1-bedroom condo around the city. Most have been in the downtown area.

But Lincoln Park and Lakeview also sport quite a few of these units, including this one at the LV Lofts, a new construction “loft-style” building at 3245 N. Ashland in the Southport neighborhood.

Current stats on the building (on the MLS)(out of 24 units):

• 9 are listed for sale
• 0 listed for rent

Unit #4C has been reduced $10,000 but if you include parking, the unit is still priced over $330,000.

What is the market for $330,000 1-bedroom units in Lakeview?

Unit #4C: 1 bedroom, 1 bath, no square footage listed

• Originally listed in June 2008 for $319,900 (parking $25,000 extra)
• Reduced
• Currently listed at $309,900 (parking $25,000 extra)
• Assessments of $117 a month
• Taxes are “new”
• Elizabeth Muscare at Rooney Realty Ltd. has the listing. See the interior pictures here.

We last chattered about Village Pointe, at 845 N. Kingsbury, in River North in April 2008. The building started closings in 2007 and several flips came on the market.

See our April 2008 chatter and some pictures here.

One of those was Unit #611, a 1-bedroom plus den, that flipped in December 2007.

It is back on the market 14 months later.

Will it flip again?

Unit #611: 1 bedroom plus “den”, 1 bath, 909 square feet

• Sold in July 2007 for $291,500
• Listed in December 2007 for $287,500 plus $30,000 for parking
• Sold in December 2007 for $315,000
• Currently listed for $319,000 plus $30,000 for parking
• Assessments of $433 a month
• Taxes are “new”
• The den is 11×7
• David Plotkin at Dream Town Realty has the listing. See interior pictures of the unit here.

Several months ago I clued you all in on problems I was having with posting pictures of some of the units due to copyright concerns.

Progress has been made (thanks to all the agents who graciously allow me to use their photos) but some copyright issues remain – especially with pictures taken by VHT, who apparently owns all the licensing rights to the pictures which have their logo.

When the weather improves, I will be out and about with my camera so many of these concerns will be moot.

Until then, please bear with me. Thank you, both readers and agents, for your patience while these issues are being worked out.

And thanks for all the tips on properties as of late. The more information you send me, the better Crib Chatter will be.

Thanks!

Sabrina

We last chattered about the first re-sale of a brick and timber loft in the new conversion at 154 W. Hubbard in River North last November.

See our chatter and pictures here.

Since then, there haven’t been any reductions in the price of the property.

Is it better to just hold firm and wait for that one buyer rather than reduce?

Unit #404: 2 bedrooms, 2 baths, no square footage listed

• Sold in October 2007 for $577,000
• Was listed in November 2008 for $599,000 (plus $35k for parking)
• Still listed for $599,000 plus $35,000 for parking
• Assessments of $168 a month
• Taxes are “new”
• Bedroom #1: 15×15
• Bedroom #2: 11×10
• Living room: 16×24
• Dining room: 10×9
• Kitchen: 13×9
• Custom Italian cabinetry by Copat
• @Properties still has the listing. See all of the pictures here.