Chicago's "deathliest" neighborhoods
Posted 7/14/2008 by Joseph AskinsIn Sunday's Trib, columnist Mary Umberger wrote that "sales are up for some of the most expensive real estate in Chicago" according to a few real-estate pros. One of those pros, Rubloff president Jim Kinney, explained that closings among $1 million-plus properties were up year-to-date over the same period in 2007.
That's not to say that Kinney sees the light at the end of the tunnel for everyone. He doesn't mince words when it comes to the state of the new-construction market.
Kinney said top-quality resale properties have held their own in the city, but new construction "is deathly."
He said the city has 13,000 new units in the pipeline, yet just 200 purchase contracts were signed in the first quarter.
Though he sees the upper-bracket sales as encouraging, they don't herald a turnaround, he said.
"There is no tsunami coming," Kinney said. "It's more like a tidal pool."
"Deathly"? Oof. So much for "stunningly soft."
New Homes has occasionally singled out areas as "Chicago's hottest neighborhoods." Let's turn that on its ear for a second: In today's market, what are Chicago's deathliest neighborhoods (is that even a word?), and why?
Comments
7/14/08
Local Realtor said:
Condo conversions in Rogers Park are going empty or underused/being auctioned/converting back to apartments because of too many poorly-thought-out projects over the last few years. Same for some parts of Uptown and apparently parts of the mid-south side as well.
CaptainVideo said:
If they cut the prices, they will buy.
Charlie F. said:
I know the south loop is doing okay, and so is the southwest side of the city where Park Place Homes is selling. Maybe it's because they are offering more of a suburban community in the city, with a pool, clubhouse and fitness center. But I know they're selling. I've seen the Lincoln Park area do nothing this year — even on the high end.
PETER said:
West Loop its bad, Lincoln Park, Rogers Park is bad as well, South Loop (strongest) the best so far ..Probobly because lake … SSome parts of Evanston seems good and strong
Alan said:
Lincoln Park is bad? What I have seen on my street has moved very swiftly. $3m+ homes and $550k condos selling with ease.
Joe Zekas said:
Alan,
It appears that Charlie F. is with an ad agency and may have a dog in the fight.
I'd discount all of the anonymous comments and believe only signed ones backed up with some hard numbers. No name + no track record here = no credibility.
7/15/08
lanre k said:
Charlie F. - can you be any more subtle? I know thw south side areas are becoming more and more deathly due to new constructions….bronzeville, woodlawn areas…take for example the proposed new construction that was supposed to take place on 63rd street…at completely ridiculous prices… as captain video stated….reduce the prices and they will buy…
irishpirate said:
I'm not aware of any projects going under in Uptown or being close to going under. That doesn't mean it ain't happening, but like my grammar it seems a bit off.
There have been a number of condo conversions In Uptown over the past 2 years and they all seemed to sell. Not quickly, but at a moderate pace or a fast slowish pace. Whatever that means.
A large number of center entrance 6 flats were converted and they did well. The courtyard buildings seemed to take longer, but still sell. Two 8 unit buildings on the 4100 block of Kenmore were built and sold out in that time frame. A 20 plus unit conversion across the street was also.
Now I am watching the new construction building at Buena and Kenmore, WaterColor Condos, to see how quickly that sells. The developer has been taking his time building it. There are 23 units in there and only a handful of sales apparently. It wouldn't surprise me if that takes 18 more months to sell out. It also wouldn't surprise me if it is mostly sold out by early next year. Now that the building is largely done I would imagine a model will be built and that might spur sales.
I guess time will tell.
As for the comment that the South Loop is doing wonderfully and Lincoln Park badly that is either deliberately wrong or someone who is badly misinformed. Given the tone of the comment I think it was deliberate.