Post Weekend Observations Here
Did you look at properties this weekend?
Post your observations.
Were the Open Houses crowded? Or sparse?
Any insights from the agents? Or from mortgage brokers?
With the beautiful weather, there could be some big crowds. I know it was actually pretty active last weekend- and the weather wasn’t nearly as nice.
Has anyone else noticed that the Sunday section of the Chicago Tribune is much, much smaller than it has been in recent years?
Normally, it shrinks quite a bit over the winter- as that’s the “slow” period.
But we’re now in April and it’s still very small for this time of year. You can really see that developers are not springing for advertisements as they did in recent years.
Took a peek at 600 N. Fairbanks this weekend—not an open house so it no crowd, but agent was active with appointments. Nice high floor one bedroom in the 04 tier —the finishes are very sophisticated, and everything is high quality modern and very refined if that’s your style.
$475k + parking 55-65k, ouch
Saw a couple yesterday, over in the West Loop. One of the units on Peoria was open, but I wasn’t particularly impressed. It was 1350 SF, but didn’t feel that big — weird layout, and really cheaply redone. For someone with more imagination than I have, however, it might be a great blank slate. The bath was nice.
Then went on to Zen. It seemed nice (and was relatively crowded), but by that time I had decided that the West Loop just wasn’t for me — I prefer a more residential, neighborhood feel. Units seemed a little small for the price, though, which seems to be par for the course with most new construction.
Ended up at Kedzie Square over at 2065 N Kedzie. If these units had garage parking, I’d already be living there — really nice, and I love the location. As it is, I’m wrestling with the outdoor parking thing. May still end up there, but memories of this winter (and of seeing other cars on the highway with 10 inches of snow on them) continue to haunt me. Also seemed somewhat busy — at least there was another couple there when I went over.
My partner and I closed on a 1200SF 1 bedroom 1 bath pre-war on Scott St in the gold coast. Gorgeous detail and a real brick wood burning fireplace. No washer dryer, no parking. Could not love it more.. A view of the lake from every window. $446,000.
And yes, pre-war sounds so much better than vintage!
Did we pay too much? Who cares, it is HOME. If your home is an investment, it is not a home.
I had brunch in East Lakeview. There was an open house sign on nearly every corner. It didn’t seem like too many people were going in though. The one I went into didn’t have anyone in it but me. The agent was happy to see me.
Maybe everyone was too busy running along the lakefront.
Michael: I think some of the problems with the older lofts is that many haven’t been upgraded in 10-15 years. Buyers really don’t want to do the upgrades themselves. After all, after putting down the downpayment, how many people have $50,000 just lying around to swap out the kitchen?
Unless the loft is exceptionally cheap- people want to just move in.
Yes, Sabrina, that was definitely the case here. To make matters worse, the owner had tried to do some VERY cheap upgrades in the kitchen — painting the cabinets, adding some cheap SS appliances, etc. The whole thing really needed to be ripped out.
I went to a few more today, mostly in Humboldt Park and UK Village. I saw some great places (as well as some crap), but none with everything I’m looking for. Nothing more frustrating than seeing the perfect unit only to discover that the parking has already sold out (I’m looking at YOU, 650 N Wood!).
Traffic seemed pretty strong to me, I have to say, particularly in some of the better located units.
y’all seem really shallow. where you live is not a game of who wins and who loses. get a life! knife catcher?! really?! you are all pretty sad if that is how you look at your precious and fleeting life on earth…… be a part of the community, not an investor.
paulj:
Owning property is not a prerequisite of “being part of the community”. Renters are part of the community, too. That you need to own to be “part of the community” is just another one of the myths associated with home ownership. Another is the “pride of owning” thing. Like you can’t take pride in your apartment 🙂
Renters are a part of the community, but the reality is that few people rent over the long term in the same unit. It happens ,obviously, but it is not common. Pride of owning is not a myth for the people who own and feel pride. Their feelings are real, not imagined. Of course you can and should feel pride about your apartment as well…but how many people who can afford to buy choose to rent instead. Once again, obviously it happens, but it is rare, there is a reason for that.
I believe that Americans move on average every seven years; it could be even more often, I’m hazily recalling a statistic I read recently. Hence, I don’t consider owners particularly stable members of any given “community” either.
PaulJ,
Not sure what you’re even trying to get at. As one of those “renters who can afford to buy,” I do consider myself part of the community, even as a renter. Not sure what that has to do with your accusations of the “shallow” concerns that come with house-hunting. And yes, I do worry about being a “knife-catcher,” although not with quite the same sense of doom some around here feel. I don’t think that’s shallow, I just think it’s appropriate financial caution — a house is a huge purchase for most of us.
I don’t think PaulJ is accusing renters of not “being a part of the community.” The problem on this site particularly is there are an abundance of abusive individuals who feel the need to criticize or belittle others. I don’t see why someone owning property or purchasing property in this market needs to be called a “knifecatcher” if what they purchase is something that makes them happy or fits what they are looking for. It’s the “don’t get it unless it makes me rich” mentality that is shallow and alarming. It’s been stated before but there is little congratulations for someone who has found something that makes them happy.
Just my 2 cents.
“Of course you can and should feel pride about your apartment as well…but how many people who can afford to buy choose to rent instead. Once again, obviously it happens, but it is rare, there is a reason for that.”
How many today? nearly 100% of the smart (and informed) ones.
“…there is a reason for that” Yeah, but the reason isn’t what you think it is. The vast majority of those who could afford to by, and did, over the past few years, did so because they were too dimwitted (or brainwashed) to see the bubble in front of them (and consequently the opportunity that would present itself in the coming years), not because they sought some sort of ‘pride of ownership’.
Most people of means buy instead of rent (today and in the past few years) because they are not smart enough (or informed enough) to know any better. It’s as simple as that. Anything more is a sales tactic, revisionist history, or wishful thinking.
John
AS:
I’m with you that not everyone buying right now is a “knife catcher.” We all need somewhere to live.
I think the problem is with people who are buying when it’s unlikely they will live in the property for more than, say, three years.
I doubt anyone would call someone a knife catcher who is going to live in the property long enough to ride out the market turbulance. No one knows how long that will be- but probably at a minimum of five years but maybe longer. Maybe ten years.
You SHOULD enjoy where you live. If you have the means to be buying right now and find a property you live- go for it.
But I think a lot of people continue to have unrealistic expectations about appreciation especially if a market is flat or declining.
I went to see a 2/2 in Michael’s Terrace, 1309 Wells, in Old Town. 2/2 with in unit laundry, balcony, and parking for $350,000. Seems like a good deal to me although the unit was in “vintage” 1989 condition! It was a gray carpeted and mirrored walled bachelor pad!
Sabrina, went and saw the house at 1445 W. Wolfram for a half million off the listing price after reading your Wolfram for sale article. 5 stories and no working elevator. Ad says house only needs another $100K. Yea right. And how do you get a building inspector to inspect a house that is so incomplete?
To answer your question about the Trib real estate section, this agent told me that the brokerage firms are spending much more of their money online and the Trib is going to see less and less ad space. I do not know what a page costs in the Trib, but it has to be more than 4-6 months of internet expense.
Also saw environs house on w. Lill. Great address but $2.4 mil? Not even an oversized lot. However, agent was wearing a most expensive watch! Someone is still making money.
I agree with Sabrina that not everyone buying now is a knife catcher. If you can truly afford to buy and find a place you like in an area you like then go ahead and buy. Just be prepared to stay there for some time. Do some long range planning.
Some young people get caught in small condos and then all of the sudden they get married have a kid(s) and then they’re left looking for a new place to suit their needs and there is no way they can do anything but take a loss on their place.
I can afford to buy but choose not to because I feel some better deals are on the horizon. Plus, looking at my relationship right now I could see myself married with a kid or two in the next 2-4 years so I’d prefer to wait it out and not buy a 1 bedroom now. I can’t afford a 2 or 3 bedroom right now but I may if and when I get married.
I went and saw a number of SFs in Bucktown and Wicker Park. It seems like many are suffering very long market times rather than reducing prices. I saw a bunch of homes at close to lincoln park prices in less than prime bucktown locations with market times in the hundreds. Anyone else get that sense, what are people’s thoughts on Single Family prices in those areas?
i totally agree with the last blogger. if you are a buyer right now…just be prepared to take a 10% hit and definitely have a 5+ time horizon. here’s what Goldman Sachs economist had to say about housing: But the economy is likely to look weak until house prices bottom, which we don’t expect until the second half of 2009. The reason is simple supply vs. demand. Although home inventories reported by builders and realtors have started to decline, broader measures that include foreclosed homes still seem to be rising. Until the excess supply shrinks substantially, home prices are likely to keep falling; we are looking for further declines totaling 10% in 2008 and another 5% in 2009.
I would love it if homes stopped being investments and went back to being places to live.
You may find it a bit uncomfortable, however, to see the value drop that much.
Checked out the new construction at 35th and Halsted (Bridgeport condominiums) I was the only one. 2br 2ba for $374,000.00 and you don’t get much!
Tipster wrote, “I would love it if homes stopped being investments and went back to being places to live.
You may find it a bit uncomfortable, however, to see the value drop that much.”
I couldn’t agree more.
AS, I wonder if you were admonishing those who bought during the bubble inflation? It isn’t the many qualified buyers that sat out during the foolishness of the bubble years who you find “shallow and alarming,” is it? I think that more accurately describes those who did buy.
I am all for anyone who is happy to pay too much for their home simply because they can afford to do it. Oh yeah, they also have to be willing to ignore all fundamentals of valuation. I am left wondering how much of the market that really represents?
Everything you purchase is an investment, whether it be the simple utility of a candy bar or the NPV of a CBD Office Building, there is a return on everything (especially your home). It is the foolishness of the people who ignored simple budgetting and listened to agents catering to the “emotion” of the home purchase (rather than the finances) that has put some in the position of borrowing more than they could ever afford.
I chuckle a little when I hear people saying that the most expensive item you’ll ever own should not be treated like an investment. Maybe they’re right and I should overextend myself on that sweet SF on Dayton in Lincoln Park, rates on an interest only 3/1 ARM are really low today and I can still qualify for a 97% LTV on like $3 Mill.
See you guys in Bankruptcy Court!
A