Lakeview Condo Sells for $134,000 Less than Original Sale in Chicago
Every once in a while a listing will catch my eye as I peruse real estate listings in the Chicago neighborhoods where I do the bulk of my business. This listing was for a condo at 1041 Grace in Chicago’s Lakeview neighborhood.
To give a little background – at least once each day I will sift through what is called the “hot report,” a delineation of changes to listings that include single family homes, condos, multi-units and vacant land. What “hot” means is that the listing is new to the Chicago market, its price has been changed, it’s been cancelled or has expired, it has gone under contract or it has closed.
With respect to 1041 Grace, something about this first-time two-year-old resale tickled the back of my brain. So I dug a little deeper.
What I discovered was more than a little disturbing.
1041 Grace was a new construction duplex down condo that was originally on the market in June 2007 for $779,000. It closed in October of the same year for $769,000. The folks who made that purchase from the developer opted to list this Lakeview condo for sale in March 2009 for $779,000. Since originally listing with a suburban real estate agent the property experienced price three reductions until at the end of July it listed at $687,999.
Less than a month later the condo went under contract. It closed last Friday for $635,000. This represents a DECREASE OF $134,000 from what the sellers bought it for just two years ago.
Bear in mind, reductions such as this are not endemic throughout the Chicago market. For whatever reasons specific to these Chicago home sellers it seemed appropriate and necessary to release this home at this firesale price.
One possible explanation for the reason this home sold for its discounted price is dually related to its proximity to Wrigley Field. The seller, after a brief google search, is integrally involved in a rooftop enterprise on Sheffield overlooking the Cubs. On the one hand this business (like so many businesses in the current economy) took it on the chin last year, offering a possible explanation of the why behind the seller’s motivations in the case that his business would not sustain his earlier purchase. On the other hand, many consumers just don’t have much affinity to live so close to Wrigley. At least not at the premium that this listing initially requested.
Whatever the explanation, the end result is rather sobering.
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