What Will 5% Mortgage Rates Mean? A 1-Bedroom at 1030 N. State in the Gold Coast
This 1-bedroom in Newberry Plaza at 1030 N. State in the Gold Coast came on the market in April 2022.
Newberry Plaza was built in 1971 and has 556 units and attached leased parking.
It is a full amenity building with 24/7 door staff, on site management and engineer, an outdoor pool, and an exercise room.
This 1-bedroom is on the 33rd floor and is a northeast corner unit with 1 1/2 baths.
The listing says it has lake, sunset and city views along with a 6×4 balcony.
The unit has wide plank hardwood floors throughout.
The kitchen has white and dark wood cabinets with a Subzero refrigerator, double Fisher oven and Paykel dishwasher, along with marble counter tops and a breakfast bar that seats four.
There are powered window treatments throughout.
The listing says both bathrooms have been “recently renovated” with modern finishes.
The bedroom has a walk-in-closet.
The unit has the features buyers look for including central air, a full size washer/dryer in the unit and leased parking is available in the building.
This unit last sold just last year, in June of 2021, for $584,500.
It has come back on the market at just $500 more, at $585,000.
For those wondering about comps, Unit 36B, which was newly renovated, just closed on Apr 15, 2022 for $590,000 but it had 2 full baths. You can see that listing here.
In 2021, 30-year fixed mortgage rates in April and May ranged from 2.96% to 3.06%.
Currently, they are around 5%.
According to the Redfin payment tracker, a buyer of this unit at full price with 20% down (or $117,000) would have the following payments:
- 3% mortgage rate: $3409 a month
- 5% mortgage rate: $3949 a month
There are only 2 units currently available in Newberry Plaza which aren’t under contract.
With inventory this low, will the 5% mortgage rate matter?
Ryan Preuett and David Mitria at Jameson Sotheby’s has the listing. See the pictures here.
Unit #33B: 1 bedroom, 1.5 baths, 1000 square feet
- Sold in November 1986 for $110,000
- Sold in September 2003 for $300,000
- Sold in November 2006 for $320,500
- Sold in March 2008 for $348,000
- Sold in October 2014 for $412,000
- Sold in June 2018 for $449,000
- Sold in June 2021 for $584,500
- Currently listed at $585,000
- Assessments of $657 a month (includes heat, a/c, doorman, cable, exercise room, exterior maintenance, lawn care, scavenger, snow removal, Internet)
- Taxes of $6486
- Central Air
- Washer/dryer in the unit
- Parking is leased in the building
- Bedroom: 16×12
- Living room/dining room: 22×13
- Kitchen: 16×12
- Balcony: 6×4
I’ve been looking at this building and the mortgage issue you highlight is a major concern. $500 extra a month is a lot of $ for someone considering buying. Might make renting a better option, especially when you consider the HOA and property tax above the mortgage payment. Can’t imagine buying at today’s rates, although I know we bought at 7% back in 1997 and it seemed like an OK deal. People who bought a year ago at 2.5% look to be in very good shape.
The unit faces northwest, by the way, not northeast. Not sure if that’s a CC error or an error by the listing agent. If the listing agent is misrepresenting as an NE unit, that’s a big mistake, because NE is the most coveted view in the building. Anyone who comes to look and finds out it’s NW is going to be pretty disppointed.
“If the listing agent is misrepresenting as an NE unit…”
From the listing:
“This highly sought-after Northeast corner one bedroom…”
Maybe they have the wrong pictures? (haha)
““This highly sought-after Northeast corner one bedroom…””
——————————————–
You gotta read shill speak. It’s the northeast corner of the unit, not the northeast corner of the building.
“With inventory this low, will the 5% mortgage rate matter?”
Matter to this seller losing money?
“Matter to this seller losing money?”
Paid cash. If he actually used it for 9 months, might end up cheaper than renting something similar.
This recent rate spike is vertical on the chart so it should come down, nothing spikes vertical forever. But it’s ok, because it’s worth it for Americans to pay more for everything as long as Ukraine has feminists in parliament and gay pride parades in its cities. That’s more important than economic dislocations. It’s our values.
3% mortgage rate: $3409 a month
5% mortgage rate: $3949 a month
Everyone is so rich in Chicago it doesn’t matter, besides it’s just a number
PAT owners will want parking
This building is a nice example of more units = less HOA appreciation over the long term. The lobby reno is nice too.
Subtract heat and A/C and you are at $450 a month for a 50 year old building. Can’t beat that.
“People who bought a year ago at 2.5% look to be in very good shape.”
For now. But that’s pretending that the new higher rate environment will be able to maintain real estate at 2021 values that were set at 3% rates. Nothing historically indicates that this will be true.
Loco stuff. Save $125K+ and get a 1320dqft 2+2 with den in my fraty building with a 40ft wide balcony & much better amenities.
Yikes in a 50 year old building you have to pay the use the one decent amenity at (the pool). HOA’s are surprisingly low though.
“But it’s ok, because it’s worth it for Americans to pay more for everything as long as Ukraine has feminists in parliament and gay pride parades in its cities. That’s more important than economic dislocations.”
How many crazy things can you put in one sentence?
Ukraine has nothing to do with inflation other than some contribution to higher oil prices.
It’s not OK for Americans to pay more for everything.
Defending Ukraine has absolutely nothing to do with feminists or gay pride.
On a separate note how are you doing with Alex Jones declaring bankruptcy?
“Nothing historically indicates that this will be true.”
Bob, you mean like the late 1970s, the last time mortgage rates rose this quickly in such a short period of time?
Prices didn’t fall in the late 1970s, by the way. Housing market slowed to a crawl though. You didn’t move unless you had to. We’ve gotten so used to just being able to sell and move and not even think about the mortgage rate because it just kept going down the last 40 years. Behavior will change. Used to be you lived in your house for 20 or 30 years. Few moved. Could be in that type of environment again.
“This building is a nice example of more units = less HOA appreciation over the long term. The lobby reno is nice too.”
Yep. Scale matters in condos. More owners to pay for the 20 or 30 staffers they have to run this building.
If you want more affordable HOAs, buy in a bigger building, not smaller.
“Loco stuff. Save $125K+ and get a 1320dqft 2+2 with den in my fraty building with a 40ft wide balcony & much better amenities.”
Does your “fraty building” have views Rob?
Someone buying in Newberry Plaza on a higher floor is buying the views. This is one of the best “view” buildings in the city, in my opinion. Southeast is better than Northwest but you get phenomenal city views each direction with little blockage.
There is a danger of a new high rise going in across the park at Carmines at some point as that parcel is on the market but at least it’s not directly across the street.
“How many crazy things can you put in one sentence?”
I deleted HH’s comment because it was so crazy Gary but I have restored it. It honestly makes NO sense. Just more ramblings.
“ You didn’t move unless you had to. We’ve gotten so used to just being able to sell and move and not even think about the mortgage rate because it just kept going down the last 40 years. Behavior will change. Used to be you lived in your house for 20 or 30 years. Few moved. Could be in that type of environment again.”
Healthy or no?
Sabrina, yes incredible views even at lower levels, some of the best in the city imo. More importantly, the pool deck is one of the best. Going to be lit on Saturday with the forecasted 70+ degree weather. (here’s them adding water a couple weeks ago FTW: https://i.ibb.co/QddKXMc/20220414-151810-03.jpg)
This building’s deck likely won’t be open and if it was you’d have to pay to be around old people, yikes.
I somewhat jest, but seriously think this is a terrible deal.
H
“This building’s deck likely won’t be open and if it was you’d have to pay to be around old people, yikes.”
Why do you think it’s “old people” when all of River North, Streeterville, Gold Coast is mostly dominated by Baby Boomers and GenX buyers?
Aren’t they all “old”?
Even the oldest Millennials are now “old” – or at least middle age.
Also, this neighborhood in the Gold Coast is turning over as the Silent Generation dies and/or moves to Florida/Arizona. Pandemic has quickened the trend. People are moving to the sunbelt permanently.
They are opening The Gild in the next few weeks up the block and a big new apartment building will go in the Barnes & Noble site. These will mostly be occupied by “younger” people, right? Will really change the feeling in this neighborhood over the next few years.
But the views from your building do look nice. Not blocked.
“Ukraine has nothing to do with inflation other than some contribution to higher oil prices.”
Are you kidding? The sanctions are causing inflation (higher prices) across the globe, economic dislocations, supply-chain disruptions everywhere. Billions of US dollars are being wasted abroad on this farce in Ukraine (which has no chance of winning).
“It’s not OK for Americans to pay more for everything.” That’s not what the Biden Entity (khazars) and LGBT/feminist singles think. They think any cost is OK to back this lost war. We also wasted money in afghanistan trying to promote feminism and gays for 20 years. Same dynamic and Putin ain’t having it either.
“Defending Ukraine has absolutely nothing to do with feminists or gay pride.” See above. It most surely does. It’s why there is a big deal made about it vs. similar minor global border conflicts.
“On a separate note how are you doing with Alex Jones declaring bankruptcy?”
Jones somehow lost a multi-million court case because he believes Sandy Hook was staged? What happened to free speech?
Not sure why I’m paying attention to HH, but anyone who thinks gays and feminism have anything to do with the West defending Ukraine is not only seriously deluded, but also doesn’t have any understanding of history.
Instead, just pick some fake villains and blame them, whatever the problem. I’m surprised he doesn’t also single out immigrants and pedophiles.
Sheep will bleat, as the saying goes.
“I’m surprised he doesn’t also single out … pedophiles.”
There’s probably a reason for that.
“Not sure why I’m paying attention to HH, but anyone who thinks gays and feminism have anything to do with the West defending Ukraine is not only seriously deluded, but also doesn’t have any understanding of history.”
Huh? What makes you an expert on this topic? And to think you know more about the history of Western Civ than I do is risible in the extreme. Pushing the globohomo-fem agenda was the main reason for the 2014 color revolution. It was raison d’être for fighting the Taliban for 20 years. It’s why our foreign embassies fly the rainbow flag. The real prize is the color revolution of Russia and Ukraine was becoming the staging ground for that. No longer.
Not surprising to find Khazar Dan on the side of immorality.
I drove over to Chicago Ave to see what’s going on in Ukrainian Village, and there’s not much. GWB and Bill Clinton flew in for a photo op, on Mar 19, lol. But it’s my belief the salt of the earth Ukrainians knew what the globohomos and neocons were doing to their country, and sadly it’s paying the price for it.
“Bob, you mean like the late 1970s, the last time mortgage rates rose this quickly in such a short period of time?
Prices didn’t fall in the late 1970s, by the way. Housing market slowed to a crawl though. You didn’t move unless you had to. We’ve gotten so used to just being able to sell and move and not even think about the mortgage rate because it just kept going down the last 40 years. Behavior will change. Used to be you lived in your house for 20 or 30 years. Few moved. Could be in that type of environment again.“
This is false. Americans have continually moved less and less. The moving rate is at all-time lows.
https://www.census.gov/library/visualizations/time-series/demo/historic.html
“The sanctions are causing inflation (higher prices) across the globe, economic dislocations, supply-chain disruptions everywhere.”
The contribution of the sanctions to inflation are miniscule. All the pieces were in place for high inflation before the sanctions.
“Billions of US dollars are being wasted abroad on this farce in Ukraine (which has no chance of winning).”
Do you seriously think that Putin would stop with Ukraine if there was no cost to Russia? It’s not a waste.
“That’s not what the Biden Entity (khazars) and LGBT/feminist singles think. They think any cost is OK to back this lost war.”
Please show us your source on what the LGBT/ feminist singles think. How many have you surveyed?
“We also wasted money in afghanistan trying to promote feminism and gays for 20 years.”
Uh…so that’s what that war was about? I thought it was about keeping terrorists out of the country. Show me your evidence that it’s otherwise.
“It’s why there is a big deal made about it vs. similar minor global border conflicts.”
Letting Russia take over a European country is hardly a minor global border conflict.
“Jones somehow lost a multi-million court case because he believes Sandy Hook was staged? What happened to free speech?”
If Jones believed Sandy Hook was staged he’s an idiot. I don’t think that was his defense. Not all speech is protected. You can’t harm people.
And who exactly sets the globohomo-fem agenda? Where can I find it? When was the meeting to set it because nobody told me about it?
You’re wasting your time, Gary.
Based on this guy’s obsession with gays, I’m guessing he belongs to the Westboro Baptist Church. The one with the congregants who disrupted funerals of U.S. soldiers who died in Iraq, yelling that the soldiers deserved to die because the war was protecting gay rights. Yes, that kind of batsh-t crazy.
“Billions of US dollars are being wasted abroad on this farce in Ukraine (which has no chance of winning).”
Is HH’s name Neville Chamberlain?
“The real prize is the color revolution of Russia and Ukraine was becoming the staging ground for that. No longer.”
I’m beginning to think that HH is just a Russian bot who has been around this site a little too long. I mean, the Trump propaganda and now supporting the Russians?
Yikes.
And HH didn’t “drive over to Chicago Avenue” to see anything. He doesn’t live in Chicago. If he did, he would have seen PLENTY there. The Ukrainian Village community has been very active since the Russian invasion. Rock on Chicago.
“Is HH’s name Neville Chamberlain?”
No – more like a certain former U.S. ambassador to England named Joseph P. Kennedy.
In 1940, he was telling his boss (FDR) that England had no chance against Germany and should forge a peace agreement. Kennedy, of course, was fired, as he deserved to be.
I’m sure HH will enjoy being compared to the Kennedy family.
“I’m beginning to think that HH is just a Russian bot who has been around this site a little too long. I mean, the Trump propaganda and now supporting the Russians?”
Very, very likely. The act is getting old.
“And HH didn’t “drive over to Chicago Avenue” to see anything. He doesn’t live in Chicago. If he did, he would have seen PLENTY there. The Ukrainian Village community has been very active since the Russian invasion. Rock on Chicago.”
Yesterday morning, I ran along Huron from Western to whatever street it ends on by the highway. There were several blocks where most houses had signs of support for Ukraine and condemnation of Russia. HH did not drive through Ukrainian Village.
Also, every single house with a for-sale sign was contingent or under contract. Lots of new construction (of teardowns) and renovations going on as well.