Crib Chatter

As I was perusing through the real estate for sale on Craigslist, one post caught my eye.  The title of it was “Home Prices Shooting Up…Next Boom Wave!!”

Clicking on the post, it said, simply, the following:

Assessments Higher!! Interest rates at lowest for 2 years… If you don’t have to sell, RAISE THEM PRICES BECAUSE EVERYTHING ELSE HAS GONE UP IN WESTERN SUBURBS AND CHICAGOLAND AREAS!! Don’t undersell your property and pay A TON MORE FOR ANOTHER HOME! Renting at an ALL-Time High and getting Higher!!!

What is the motivation behind posting this post? There is no link to try and sell me something (like a condo in Mexico.)

Is it someone who is simply fed up with their neighbors lowering their prices (and hence bringing down values in his own neighborhood)?

The post location was Bolingbrook/Naperville- both areas with very high inventories for this time of the year.

But it begs the question: how long do you hold on to your current price if nothing is selling in your neighborhood?

Most sellers want to believe the “bottom” is near and that prices will be going up even as early as next year. Do you hold on until next spring and try and sell then? Or do you do a “drama” price reduction and simply try and get out of the house now?

If you’ll recall from a prior post, the sheriff’s auction of 2440 N. Orchard in Lincoln Park was due to go forward this week.

I called the Sheriff’s office and found out that it had been “canceled”- not surprising given the property and the auction price of only $1.325 million.

That developer/builder apparently found a white knight at the last moment.

I will be watching the property to see how long it stays on the market and whether or not it’s reduced in price.

It’s definitely getting interesting out there.

CMK has two buildings in the south loop nearly next door to each other.  Both are modern with concrete and glass.

1620 S. Michigan was the first of the buildings to close (the other being 1720 S. Michigan.)  Closings began in 1620 last summer.

CMK has been building fairly affordable buildings in the last few years- especially in the south loop.  Flippers have been investing in the hope that the south loop, what Chicago Magazine dubbed “the country’s hottest neighborhood” would keep appreciating at the rate it did in the last 10 years.  Some agents are hoping that the Olympics will inject a sense of urgency into the south loop.  This listing on Craigslist says to “buy before the Olympic rush.”

But some flippers haven’t had the greatest luck in the building.  Many of the units closed over a year ago and some are still holding on – waiting for a buyer and losing money with every month that goes by.

Unit #406: 2 bedroom/2 bath, 1148 square feet

• Sold for $331,000 in August 2006
• Currently listed for $329,900 with parking extra for $35,000

Unit #803: 2 bedroom, 2 bath, 1100 square feet

• Sold for $333,000 in September 2006
• Currently listed for $335,000 with parking included
• Listing says “never lived in”

Unit #1001: 2 bedroom, 2 bath, 1085 square feet

• Sold for $337,500 in September 2006
• Currently listed for $349,000 plus $35,000 for parking
• Listing says “never lived in”

It seems that these investors are going to take quite a big hit on these units. 

Sono, the new building under construction near the Clybourn corridor (the developer calls it Lincoln Park but no one else does) had a new ad in the Chicago Tribune on Sunday.

The ad had a picture of a young, thin, blonde woman and asked: “Are you a Match for Sono?”

It was a “play” on the internet dating sites, giving the woman the name: frstTIMEhomebyer60622.

The fake “profile” says:

About Me:Feels good to be single (again) and rediscovering all that’s great about the city! I’m into good friends, fabulous cultuer and great dining, and running along the lake from Chicago’s coolest part of town.

Looking for:I owned a studio near the river, but now I want a neighborhood to call my own – one with more going on. I’d like to be able to walk out my door and get anything- a new outfit for tonight, groceries, takeout from my favorite Mexican place, whatever. Be great if my place had a cool look and open space to have friends and maybe someone new over.

Do any of you single women buyers out there feel compelled by this ad? (let’s not get into whether you can “run along the lake” easily if you live in the Clybourn Corridor) But in general: does this kind of ad catch your eye?

And what if you’re a single guy?

Seems a bit odd to me (but, of course, I did notice the ad and here I am writing about it.)

Developers are trying anything to differentiate themselves from the competition.  There are simply too many high rise buildings being sold right now.

Slowly, the foreclosure lists are starting to reflect stresses in all markets in the Chicago area.

Last week there was a $1.3 million foreclosure in Hinsdale on Hickory.

According to the Chicago Tribune, on September 11 the sheriff is auctioning off a multi-million dollar Lincoln Park home.

2440 N. Orchard St.:

• Sheriff Sale for: $1,325,655
• Last sold in July 2006 for: $1,450,000
• Currently listed for $4.6 million

From the listing:

FANTASTIC 9,400SF MASONRY HOME ON EXTRA-WIDE LOT (37.5′ X 125) IN HEART OF LINCOLN PARK. 5 LEVELS OF LIVING, WITH 1, 500SF 3RD FLOOR MASTER SUITE, 6 TERRACES/DECKS, STATE-OF-THE ART TECH, CUSTOM CABINETS, RADIANT HEAT, SPRINKLER SYS, SNOW MELT, 800SF PENTHOUSE W/ WRAP AROUND DECK, WINE CELLAR, 4 BRS ON 2ND FLOOR, SEP REC ROOM AND MEDIA ROOM, 2 LAUNDRYS, CHEF’S KITCHEN, BUTLER’S PANTRY, WATERWORKS TILE & FIXTURES

This was an older apartment building that was purchased last year to make way for the new McMansion.  How long can these McMansion developers hold on? That’s the question, right?

Obviously, this developer couldn’t hold on long enough.

Stunning foreclosure.

In this crazy market, there are some properties that seem to sell in only a few weeks (for insane prices) and others that sit on the market for months with numerous price reductions.

560 W. Roscoe #3W is one of those properties that is sitting on the market.

It’s a gorgeous unit that feels like a single family home.

• #3W: Two bedroom, two bath, 2100 square feet with a dining room

As you can see from the pictures, the kitchen has been completely renovated.  Both bathrooms are also modern and renovated with the vintage feel.  The crown moldings and fireplace are to die for.  There is also an enclosed sunroom off the back.

It’s been on the market 210 days with several price reductions.

• Original list price: $499,000
• Current list price:  $465,000

What is wrong with it?

1. It’s on the third floor of a walk-up building.  Some people hate that.  They don’t want to walk up or carry groceries or children up stairs.
2. It doesn’t have central air- though that can be rectified for probably about $10,000.
3. It lacks parking.  Even the best properties are sitting on the market if they lack parking.

If you don’t have parking, forget it.

Still, you have to admit, it’s gorgeous.

Think you’re priced out of prestige buildings these days?  Maybe you’re not.

After several years of marketing, the Palmolive at 159 E. Walton is still trying to sell some of its remaining developers units.  This is the building, you may recall, where Vince Vaughn purchased the penthouse unit.

The developer seems in no hurry to move the remaining units.  Unit 6F, 1 bedroom, 1.5 baths is for sale for $669,000 with 1146 square feet.  There doesn’t appear to be parking available however.

There is, however, a multi-year historic tax freeze.

American Invsco has been trying to sell the remaining deeded parking spots in its 33 W. Ontario building for months now.  From Craigslist:

We have 8 deeded parking spots available at Millennium Centre at 33 W. Ontario. Prices range from 25k-29k each. Assessments are $53-$61 each month depending on the space. Parking is available in a private area on the 8th through 11th floors. The garage is entered on the 3rd floor and goes immediately to the 5th floor where parking begins. The garage goes up by odd numbers ie: 3,5,7,9,11. It is very fast to the private gated parking on the 9th floor. This is is next to Excalibur Nightclub, Rock and Roll McDonalds, Hard Rock Cafe, in the heart of River North. Save money by buying one or all of these parking spots today at prices reduced from 45k. Millenium Center.

According to the ad, you can only rent them out to people who live in the building.

Boy, if you were an original purchaser in the building who paid an extra $45,000 for the parking, wouldn’t you be pleased to know that the developer was now selling them for nearly half of what you paid?

Yes, me too.

The 18 unit conversion of a brick and timber building at 154 W Hubbard is 50% sold with the more expensive units still remaining.  Part of the problem with this building is the price. 

You have 2 bedroom, 2 bath units for $649,000 but the square footage is just average.  You can buy a duplex penthouse unit at the Sexton Lofts down the street for cheaper and it has multiple decks.  Yes, it’s not “new” construction but the Sexton isn’t that out of date either.

Avenue East, the new condo building going up just east of the Mag Mile at 160 E. Illinois, has not yet begun its closings but already some buyers are trying to sell their new units.

The first re-sale that I know of has appeared on Craigslist.  It is a split 2 bedroom, 2 bath of only 1100 square feet.  They are asking $565,000 with $50,000 for parking and say it’s “below developer pricing”.

The same unit is also for sale two floors below for $571,220 so the ad is correct (that they are below the developer’s current price.)

The developer is still trying to unload 13 of the units before the closings begin in the next few months.