Crib Chatter

Lincoln Park continues to be pricey for those looking for a first home- i.e. a one bedroom condo.

1104 W. Montana in Lincoln Park appears to fit the bill and is currently listed at 2006 pricing. From the listing:

JOB RELOCATION OUT OF STATE – SELLER’S LOSS YOUR GAIN. IN 2007 $10,000 IN UPGRADES. APPRAISED 10/07 FOR $270K. LOCATION BEATS THE COMPETITION. BEAUTIFUL MONTANA ST. IS QUIET AND HAS FAR LESS TRAFFIC (READ: EASY PARKING).

1.5 BLOCKS TO FULLERTON EL AND GROCERY, WALK TO EVERYTHING. VERY SUNNY, CALIFORNIA CLOSETS, ATTRACTIVE BUILDING. ASSESSMENT INCLUDES HEAT, TAXES EXCEPTIONALLY LOW FOR LP.

I can’t tell from the listing if it has parking or a washer/dryer (it doesn’t appear to have either.)

Unit #2: 1 bedroom, 1 bath

• Sold in August 2001 for $177,000
• Sold in July 2006 for $250,000
• Currently listed for $256,000
• Assessments of $245 a month
• Taxes of $1,627
• Livingroom: 19 x 11
• Bedroom: 14 x 11
• Diningroom: 11 x 10
• A/C Window Units
• Hudson Parker Realty has the listing

You occasionally see for sale by owner (FSBO) listings on Craigslist.  Sometimes the listing sounds ominous by saying things like if you don’t buy the unit by such and such date, it will be listed for “higher” with an agent by the end of the month.

Does this type of threat work in this market? I have never seen it successfully sell a property- but if you have, please let me know.

I recently saw one FSBO listing on Craigslist at 735 W. Oakdale in Lakeview.  It is NOT that kind of listing.  Here’s the listing:

Top Floor Vintage Condo in Desirable Lakeview.
Very spacious and bright with lots of windows and beautiful woodwork. Large Living Room with ventless gas fireplace. Hardwood flooring, high ceilings, and private porch.

Formal Dining Room with bay window and copper bar. Plantation blinds stay in Living and Dining Rooms. Southern Exposure from Porch.

Updated kitchen with new ceramic tile and plenty of cabinets that were upgraded recently to light oak with grey countertops. Stainless Steel appliances.

In unit laundry closet with stackable washer/ dryer included.

Elfa storage units in both bedroom closets make staying organized easy. Large floor to ceiling cabinets in Master Bedroom for additional storage.
Room Sizes:
Living Room: 15 x 11
Dining Room: 14 x 11
Kitchen: 20 x 7
Master Suite: 11 x 10
Second Bedroom: 11 x 10
Back Porch/ Balcony: 14 x 7
Heat: Radiant

It doesn’t appear to have parking, which is a selling point in Lakeview.

Can they sell without an agent?

Here is the sales history:

Unit #3W: 2 bedrooms, 1 bath

• Sold in July 2002 for $207,000
• Sold in August 2004 for $263,000
• Currently listed for $339,900
• Assessments of $290 a month
• Taxes of $2600

If you’ve driven or walked down South Michigan Avenue along Grant Park you have gone past 1142 S. Michigan and probably didn’t even notice the building.

It is a vintage mid-rise condo building with only 8 units- one per floor. 

The elevator opens directly into each unit.

One of the units has just appeared on the market and it is marketing itself compared to the new construction competition next door (in The Columbian) and down the street  (in One Museum Park.)

From Craigslist:

New York City Central Park Quality Vintage with true privacy in South Loop. This condo, part of an 8 story one unit per floor building, reflects understated “top shelf” taste throughout. An expansive library, living room, and dining room/kitchen all overlook Grant Park, Museum Park, and the Lake Two separate home offices (one of which can be converted to a 2nd BR suite) 2 bedrooms, 3 bathrooms., and huge dressing Rm.

Agent Remarks: Fully Wired. 2 Parking Spots, Huge Storage, Roof Top Deck, 3 Small Balconies. Most Importantly–Value Per Square Foot that DWARFS the Nearby Towers facing South Grant Park.

Unit #5: 2 bedrooms, 3 baths, 2 car parking, 2 home offices, a huge laundry room, 3 balconies

• Sold in June 2001 for $899,000
• Currently listed for $2.1 million
• Assessments of $1,281 a month
• Three wood burning fireplaces
• Re/Max Exclusive Properties has the listing

1142 S. Michigan Tour– with music [website]

Some bank-owned units seem to sell like hotcakes and others sit on the market for months. 

Why?

Unit #406, the 2/2 in The Sterling at 345 N. LaSalle that is bank-owned has been on the market for several months at $285,000.  See the pictures below:

The two bedroom foreclosure at 212 W. Washington that I chattered about in March 2008, Unit #1902, is apparently now under contract after being on the market for several months. 

It was a 2/2 with the parking- listed at $299,000– far cheaper than  anything in the building. See pictures below:

This distressed property in 523 S. Plymouth in Printers Row, a two bedroom loft with washer/dryer in the unit, apparently went under contract within days of hitting the market. It is cheaper than the one bedrooms currently for sale in the building.

Unit #705: 2 bedrooms, 2 baths, 1240 square feet

• Sold in March 2004 for $290,500
• Listed for $229,900 – parking available in the building for around $30,000
• Assessments of $418 a month
• Listed as “as is where is”
• @Properties has the listing

The two bedroom bank-owned unit in Michael’s Terrace, at 1309 N. Wells in Old Town is apparently still available after several days on the market. (Sorry- no interior pictures available.)

Unit #607: 2 bedrooms, 2 baths, w/d in the unit, parking included

• Currently listed for $279,900
• Assessments of $390 a month
• The Lake Shore Drive Group has the listing

The other two bedrooms for sale in the building are currently listed in the mid-$300,000s. The $279,000 price is closer to what units in this building were going for in 2003-2004.

I don’t know where I saw the stat, but a few years ago in one of the local publications, it said that the average length of time a buyer lives in a loft condo is two years.

If you look around- you find that to be pretty much the case.  (On average- of course.)

Take, for instance, these lofts at The Vic Lofts at 3150 N. Sheffield in Lakeview. This is a concrete conversion building that was marketed at the peak of the boom in 2005 and 2006 to first time homebuyers. Most of these sellers are listing after having bought about two years ago.

Is this building even sold out from the developer? There is still a sales banner on the side of the building (clearly visible when you ride by on the El.)

Unit #610: 1 bedroom, 1 bath

• Sold in November 2005 for $265,500
• Currently listed for $269,000
• Assessments of $282 a month
• Rental parking next door for $195 a month
• Coldwell Banker has the listing

Unit #411: 1 bedroom, 1 bath

• Sold in February 2006 for $213,000
• Currently listed for $219,900
• Assessments of $255 a month
• Rental parking next door
• Coldwell Banker has the listing

Unit #409: 2 bedroom, 2 bath, 720 square feet (yes that square footage is correct)

• Sold in February 2006 for $238,500
• Currently listed for $299,000
• Assessments of $281 a month
• Rental parking next door
• Bedroom #1: 13 x 8
• Bedroom #2: 10 x 8
• Urban Real Estate has the listing

Unit #301: 1 bedroom, 1.5 baths, duplex, 15 foot ceilings

• Sold in March 2006 for $265,000
• Currently listed for $274,900
• Assessments of $320 a month
• Rental parking next door
• Century 21 Sussex & Reilly has the listing

Crain’s has an update on sales of new construction downtown condos. (“Downtown” is usually defined as Cermak Road on the South to North Avenue on the North.)

It isn’t pretty. But it also shouldn’t be surprising, given what we’re seeing with the lack of sales of the flips.

Downtown condominium developers suffered their worst first quarter in at least a decade, selling just 201 units — an unwelcome trend as unsold condos start piling up.

The total represents an 83% drop from first-quarter 2007, when downtown developers sold 1,207 units, according to a report by Appraisal Research Counselors, a Chicago consultancy. The only quarter with lower sales in the past 10 years was the last three months of 2001, after the Sept. 11 attacks, when developers sold 92 units.

The speculators who drove the condo boom a few years ago have all but disappeared, and tighter lending standards have made it harder to finance a purchase. The weak economy also is taking a toll, says Appraisal Research Vice-president Gail Lissner.

“Buyers are concerned about whether the market has hit the bottom,” she says. Many are asking, “if they buy today, are they going to look foolish 30 days from now?”

More developers are willing to negotiate on price but “in general, developers are not slashing prices,” Ms. Lissner says.

The report doesn’t include sales from The Spire.  (The Spire said it would not reveal sales figures until “the summer”- which is interesting unto itself if you think about it.)

Developers sold 3,724 units last year, a 54% decline from the record 8,162 sold in 2005, according to Appraisal Research. At the current rate, they’ll be lucky to match even the 3,258 units sold in 1998, the weakest year in the past decade.

With sales stalled, the supply of unsold condos keeps growing. Developers have yet to sell 5,561 units that have been completed or are under construction, up 79% from 3,114 units available at the same time last year, Appraisal Research says.

This data brings up several questions:

1. How many buyers were investors in the last few years?  I saw estimates of 20-30% a few years ago.  Could it have been even higher?
2. Will the first quarter be just a blip in the sales data (as the quarter after 9/11 was) and return to “normal” levels in the next few months or will this be the story for the rest of 2008?

Stay tuned.

Downtown Dead Zone [Crain’s]

How long do you have to live in a property to cover your costs? Many sellers are finding out it’s more than just a year, or two, or in some cases, even three.

2545 N. Clark is a 2006 and 2007 conversion of a small courtyard building in the heart of Lincoln Park.

A one bedroom unit is on the market a little over a year after it first sold.

Unit #1: 1 bedroom, 1 bath, no square footage given

• Sold in December 2006 for $285,000
• Currently listed for $314,900
• Rental parking available nearby
• Assessments of $138 a month
• Century 21 Sussex & Reilly

I haven’t chattered about 340 On the Park, at 340 E. Randolph, in Lakeshore East for awhile.

Current stats on the building (out of 344 units):

• 18 for sale
• 10 for rent

Thanks to the tipster who sent me the sales information about this building.  It’s massive and hard to track.

Stats on flips and rentals:

• 12 units flipped (from what I can tell)
• 34 units rented
• 11 units pending

A bunch have simply either let the listing expire or have canceled the listing.

Of the flips, not everyone has made money. The listing price below was the last list before it closed- some were listed higher originally but had reductions:

Unit #307:

• Sold in July 2007 for $314,000
• Listed for $599,000
• Sold in March 2008 for $525,000

Unit #405:

• Sold in July 2007 for $314,000
• Listed for $659,000
• Looks like it resold for $600,000

Unit #601:

• Sold in August 2007 for $939,000
• Listed at $999,000
• Sold in January 2008 for $949,000

Unit #703:

• Sold in September 2007 for $779,000
• Listed for $1.05 million
• Sold in April 2008 for $1,032,500

Unit #1203:

• Sold in August 2007 for $803,000
• Listed for $1.149 million
• Sold in March 2008 for $1.1 million

Unit #1407:

• Sold in September 2007 for $619,000
• Listed for $704,000
• Sold in March 2008 for $690,000

Unit #1701:

• Sold in November 2007 for $1.539 million
• Listed for $1.56 million
• Sold in April 2008 for $1.5 million

Unit #1804:

• Sold in October 2007 for $830,000
• Listed for $1.2 million
• Sold in November 2007 for $950,000

Unit #2302:

• Sold in November 2007 for $638,000
• Listed for $689,000
• Sold in April 2008 for $675,000

Unit #3301:

• Sold in December 2007 for $1.644 million
• Listed for $1.699 million
• Sold in February 2008 for $1.6775 million

Unit #5501:

• Sold in February 2008 for $1.601 million
• Listed at $1.85 million
• Sold in April 2008 for $1.8 million

The most expensive unit currently on the market is:

Unit #5901: 3 bedrooms, 3.5 baths, 4050 square feet

• Listed for $3.499 million
• Three parkings spots available for $60k each
• Assessments of $1,338 a month
• Premier Relocation Inc. has the listing

How much appreciation has there been in the Chicago condo and townhouse market over the last ten years?  As everyone knows- quite a bit.

Was it a “bubble”?

This is a list of price growth over the last three, five and 10 years for condos/townhouses.  Data provided by the Chicago Association of Realtors.

Rogers Park:

• Three years: 17%
• Five years: 37%
• 10 years: 161%

Edgewater:

• Three years: 21%
• Five years: 33%
• 10 years: 194%

Lincoln Square:

• Three years: 11%
• Five years: 43%
• 10 years: 189%

North Center:

• Three years: 12%
• Five years: 17%
• 10 years: 117%

Lakeview:

• Three years: 5%
• Five years: 19%
• 10 years: 111%

Lincoln Park:

• Three years: 9%
• Five years: 17%
• 10 years: 88%

West Town:

• Three years: 12%
• Five years: 23%
• 10 years: 121%

Gold Coast:

• Three years: 8%
• Five years: 36%
• 10 years: 112%

West Loop:

• Three years: 12%
• Five years: 28%
• 10 years: 84%

Loop:

• Three years: 54%
• Five years: 76%
• 10 years: 148%

South Loop:

• Three years: 5%
• Five years: 6%
• 10 years: 36%

Yes- something seems skewed with the South Loop data.

Kenwood:

• Three years: 37%
• Five years: 56%
• 10 years: 159%

Hyde Park:

• Three years: 17%
• Five years: 28%
• 10 years: 139%

[Thanks to the tipster who sent me this information.]

The sales numbers are out on the first quarter (Jan-March). From Crain’s:

In the city of Chicago, sales of homes and condos fell 19.9% in the quarter to 4,618. The median sale price, meanwhile, rose 5.4% to $295,000.

In the nine-county Chicagoland area, sales were down 29.9% and median price fell 0.6% to $243,500. The Illinois Association of Realtors blames it on the weather…and the economy:

“Extreme winter weather on top of shaky consumer confidence due to rising gas and food prices and the uncertain economy affected overall home sales activity statewide,” Kay Wirth, president of the Realtors group, said in a press release. “Realtors do anticipate a boost in activity as we enter the spring housing market from pent-up demand held over for so many months.”

Thirty year fixed mortgage rates were down compared to the first quarter 2007 at 5.91% versus 6.24% in 2007.

But if you want to rent instead, the Chicago Tribune reports that rents are rising and landlords are in control:

The vacancy rate in Chicago for the first quarter of the year was 4.7 percent, according to Hendricks & Partners, a Phoenix-based real estate management company.

“Anything below 5 percent is considered a landlord’s market,” said Walter Molony, a spokesman for the National Association of Realtors. He noted that the national vacancy rate also stood at 4.7 percent for the quarter.

In past years, a rate of 7 percent was not considered abnormal.

“Renters are hesitating to get into the homeownership market,” Molony said. “They are staying in rentals.”

Because of the demand for rentals, rents are on the rise:

Chicago-area rents went down between 2001 and 2003, according to CBRE Torto Wheaton Research.

In 2001, the average rent was $1,035 a month, according to Torto Wheaton. By 2003, the average rent had fallen to $980 a month. The average derives from all apartments in buildings with five or more units located in the greater Chicago area.

By the end of 2007, the average rental cost had rebounded to $1,079.

But some analysts do not expect rents to spike as housing prices did in recent years.

“Generally, a slowing economy is hurting” rentals, said John Coumarianos, an equity analyst with Morningstar.

We’ve been chattering about the thousands of units coming on-line in the downtown area in the next two years. Can students really rent all of those one bedrooms with granite and stainless steel appliances? And what about the $2500-$3000 two bedrooms?

The rental activity in buildings like Library Tower – which is right across from the multi-college dorm at State and Congress Parkway- will be a good indicator of what the market will bare.

Matthew Lawton, senior managing director of Holliday, Fenoglio Fowler, sees about 7,000 new rental units coming on the market in the next three years, well over the 4,500 that is typical.

And they won’t fall under the category of low-income housing, he said.

“It’s all going to be at the top of the market,” Lawton said.