Sorry! Crib Chatter Is Taking A Sick Day But You Can Chatter About Downtown Price Declines Since 2008
I came down with a really nasty virus last night that knocked me out of commission. I thought I might be able to post at least one new post today, but I still feel equally as terrible and don’t want to even sit in front of a computer (my couch is calling instead.)
So Crib Chatter is taking a sick day today.
In the meantime, you can all chatter about the latest report on the Chicago market by the Appraisal Research.
Downtown condo prices are down 18% since 2008 but it was worse in some areas and better in some others. (Surprise, surprise – location, location, location.)
By the way- the people who said that “downtown” was defined on the south as Cermak in the other thread was correct.
A recent survey of 65 large downtown condo buildings found that resale prices on a square-foot basis fell 18 percent on average from 2008 to 2012. The Gold Coast registered the smallest decline, 11 percent, while the South Loop suffered the largest, 30 percent, according to Appraisal Research Counselors, the Chicago-based consulting firm that conducted the survey.
The disparity makes sense considering the South Loop was the epicenter of the city’s development boom — and its bust, as buyers failed to show up for many new projects after the market started falling in 2006. Overbuilding was less of a problem in the Gold Coast, an older, wealthier neighborhood.
“People talk about barriers to entry. Well, there are more barriers to entry in the Gold Coast than other markets,” said Gail Lissner, vice-president at Appraisal Research. “This sampling shows a bunch of those buildings have done very well.”
The survey covers more than 20,000 condos in the area bounded roughly by North Avenue, Cermak Road, Lake Michigan and Ashland Avenue. The area comprises about 80,000 condos, so the survey captures roughly a quarter of the total market.
Here are the losses by neighborhood:
- Gold Coast: down 11%
- Loop: down 12%
- River North: down 14%
- South Streeterville: down 17%
- West Loop: down 22%
- South Loop: down 30%
Not surprisingly, the Gold Coast has the highest prices, $433 a square foot this year, according to the report. The Park Tower, 800 N. Michigan Ave., led the market overall, at $760 a square foot.
Prices have risen since 2008 in just three downtown buildings: the Park Tower, where they rose 10 percent, the Regatta, a building in the Lakeshore East development, where they rose 2 percent, and the Bristol, a building at 57 E. Delaware Place, where they rose 63 percent. But the Bristol’s increase was skewed by one $6 million penthouse sale this year.
For those of you who think that the distressed sales are NOT affecting the GreenZone, you would be wrong.
Sales of foreclosed and other distressed condos have depressed prices, accounting for 28 percent of all resales in the first half of 2012, up from about 2 percent in 2008, according to the survey. Distressed sales have been a bigger issue in the South Loop, accounting for 23 out of 25 sales this year — 92 percent — in a building at 1720 S. Michigan Ave., where prices have fallen 40 percent since 2008.
Is any of this a surprise to anyone who reads Crib Chatter?
Downtown condo resale prices down 18% since 2008 [Crain’s Chicago Business, David Lee Matthews, Aug 23, 2012]
Feel better soon! Thanks for all the hard work you do making a great site.
Get well soon. Could be west nile virus. Pretty sure I just had it.
What JJJ said – I hope you’re feeling better soon!
Here’s a property for discussion: http://www.zillow.com/homedetails/448-N-Carpenter-St-UNIT-F-Chicago-IL-60622/49911472_zpid/
I find the history to be the most interesting part: Purchased 3/08 for $470, listed 7/11 for $1.115m! After more than a year on the market it is down to $685k and still not selling. What were the realtor/seller smoking on that original list and what will it take to sell it?
“Here’s a property for discussion”
Sold for $360 in ’02. ’08 purchase actually included 10% down. Pending f/c.
feel better
I am sorry to hear you are not well & hope you are better soon. Thank you for running this blog which continues to educate and entertain me!
Assume a major remodel, no? That location is bunkhole within an anal fissure.
get well
the only thing worse than getting sick
is getting sicker
Thanks for all the get well wishes everyone. I am feeling a bit better but am still under the weather. So if the posts this week are boring, sorry. I couldn’t get out to take any pictures this weekend (obviously.)
How about 3828 paulina for discussion. Sold 2x this summer?
Sharon: I tried to e-mail you back about 3828 N. Paulina but your e-mail bounced. Thanks for bringing it up again.
The 2-flat apparently sold in June 2012 for 409,000. Redfin says it sold again in August for 440,000. The public records take some time to get updated so I would wait to have the official record (as I don’t trust the MLS for a host of reasons.)
I don’t see it as a big deal. Some developer probably bought it the first time (it was a tear down) and then circumstances changed and decided to resell the property (i.e. the lot.) And then it sold again quickly.
Regarding 448 North Carpenter – Unit F:
Where to begin? There is so much wrong — check out the square footage of all the other units 1,104 square feet for units a – f, and 1,224 for units g – l … but yet they claim 2,650 square feet … right
The price ? beyond clueless … changes realtors regularly … no amount of renovation will make this more than what it is. think it is also available for rent at $4000 per month
There is now another unit of same for sale … unit d for $430,000