Smart Money Getting Out
We wrote about downtown office buildings selling for fractions of their previous values.
The Chicago Contrarian has an article up about upper-middle class home values taking comparable hits as those who can afford to leave a blue-city-blue-state $hithole, finally make the move:
The Chicago luxury housing market in many neighborhoods is dropping precipitously in value.
This circumstance isn't just a cooling off – it's like it took a dip in Lake Michigan this January in the sub-zero temperatures. A range of high-end single-family houses, condominiums, and coops in the Gold Coast, Streeterville, and Lincoln Park neighborhoods are declining in value by the month.
“This is a worst-case scenario, which is currently trapping thousands of well-healed residents who took out large mortgages,” says one Chicagoland residential real estate investor. “Northside condos appear to be taking the biggest hit,” he observes.
The author then cites half-a-dozen or more recent sales, all of which were made at significant loses....or at least at what we solid middle class homeowners would qualify as significant.
As usual, go read it all. We're on the precipice of something awful.
Labels: events
posted by SCC at 12:02 AM
53 Comments:
I know someone who paid over $20,000 @ year in property taxes for a condo on LSD.
Say goodbye to that money coming in.
Hello Detroit 2.0
My Dad lost half the value if our home during busing in the 80s. Run. You are already 40 years late.
They may be selling at a loss but they'll probably recoup through what they'll save on taxes someplace else.
This is absolutely wonderful news. If the clueless, rich white liberal douchebags who inhabit these north side neighborhoods get far enough underwater on their huge mortgages then they won't be able to sell. That means this trash won't be able to move to a red state and pollute it with their garbage mindset.
Not to worry, though. I hear the city will give them a few sheckles to put toward their mortgage if they agree to take in some illegals.
Death Spiral! Move over Deeetroit!
When every Chicago Neighborhood is a carjacked ride away from the'hood? There are no good, safe neighborhoods in Chicago or the Suburbs anymore.
Crime is everywhere. Safety is nowhere to be found.
The Smart Money GOT OUT!
Greek Lightning?
Bet is good when people have to take too big of a haircut and the bank doesn't want to take it back and sell it short.
Once the CBOT decides to pack it in, you can kiss the whole North Shore good bye... none of the traders from Kennilworth to Lake Forest need to be there once the kids gradumate high school if the CBOT goes remote.
Just section-8 it.
The answer is clearly more diversity for those neighborhoods.
It sounds racist to sell at a loss when you could just house the less fortunate instead.
run for your lives... the sky is falling
20+ years ago I would hear old timers say that Chicago will be the next Detroit, well fast-forward today it sure looks like their prediction was correct. If you have short term investments it might be wise to pull it out and buy a house on the low end outside Chicago. I believe the whole state will have the same affect.
Well-healed? Do they need healing?
I always thought as prices in the blue shit-holes dropped as many people fled, the prices in the red states would continue up. You know, the whole supply/demand thing. It appears prices in red states like Tennessee and Idaho are dropping too. Been watching some pretty significant price cuts there - maybe not to the extent Illinois is though. Rural areas seem to be holding up better than urban. Guessing everything will shake out in the next few years for a bottom. The last R/E bust took about 5 years from 2007 to 2012.
This was inevitable. The Zero Interest economy papered over the problems.
Now that interest rates are returning to normal levels, the same monthly payments are buying less and less. One way around that is for list prices of houses to decline as interest rates rise.
I remember my Father explaining the "Block Busting" of the 1960's. It destroyed neighborhoods and devastated home values in hundreds of neighborhoods. Some people are going to get very rich as the homeowners panic and sell.
...raising taxes will solve this....
Who can I bill for this advice..
.
Property values are plummeting?
Property tax revenues are going to follow! Where will the Chicago Machine get their money? It's going to get vicious and nasty when people start getting short changed. I can hardly wait for the criminal grifters to turn on each other. They all want theirs, and f*ck the other guy!
Someone Chopped the Head Off the Golden Goose!
Who do you blame?
Kimmie?
Groot?
Prickster?
9 years on cpd, purchase house in Beverly. What a mistake, go up and down western looks like Englewood.
The high end hoods have been in trouble for awhile. Many have steadily fled and are continuing as soon as they figure out their new safety zone.
O T: anyone else having flashes on their iPhones whilst typing? Have camera covered but flashes like photos continue on my screen. Weird.
Stay safe!
I sold 2 prime gc condos at huge losses years ago and haven’t recovered. Lost everything, plus all the crazy high assessments and special assessments destroyed everything. When I bought, assessments were affordable, that changed fast and insane special assessments, garage fees, etc made it worse. Thanks to obummer.
Also, taxes were crazy high. Some folks paid $80k with 4 steps of green space, where a significantly larger home with property including a great extended family barbecue green space in Hyde puke was only $20k. And yes that’s the same area that u of c set up and paid for multiple small retail store’s build out and inventory for the correct demographics.
Property taxes are the government grift. The poor suckers who bought are going to pay through the arse ad infinitum....
Blackrock will be along shortly to scoop it all up. They got their own armada of tax lawyers. Burke and Berrios type law firms need not waste their time sniffing around. There will be a new gangster in town.
Got out last summer when I sold my NW side 2-flat. Underperformed inflation by $125,000 over the course of 21 years ownership. What’s the cliche say? Slowly at first, then all at once! Did not want to be holding the bag with an old building in a rapidly declining neighborhood. Finally got a solid buyer with conventional financing after several flaked out because they couldn’t get their FHA loan.
Can anyone confirm if Dick's or Cabelas are currently having tents on sale? Asking for a friend...
5:57AM….. Different this time. Culture, politics, and technology have made cities like Chicago unlivable and obsolete for normal families. Chiraq will be a warehouse for the millions of illegal aliens being imported to destroy the nation.
Closed our sale in the third week of June, 2022. If we'd been a week later, we'd never have gotten out.
Now we're in Indiana paying less than 20% of the taxes on a house with almost exactly the same market value as the one we sold.
And I don't have to worry about my guns being confiscated.
IL can have the legal weed. I prefer the legal fireworks.
12:36AM…….Yes! The mortgage situation is keeping loud, ignorant, D voting Chiraqis from moving to my new home in the Deep South. So many moved down here and didn’t assimilate.
This. The entire real estate market is due for a correction.
Urban shitholes have additional concerns.
Anonymous said...
I always thought as prices in the blue shit-holes dropped as many people fled, the prices in the red states would continue up. You know, the whole supply/demand thing. It appears prices in red states like Tennessee and Idaho are dropping too. Been watching some pretty significant price cuts there - maybe not to the extent Illinois is though. Rural areas seem to be holding up better than urban. Guessing everything will shake out in the next few years for a bottom. The last R/E bust took about 5 years from 2007 to 2012.
1/27/2024 05:39:00 AM
Sadly, most north-side liberals are still in deep denial, still think Chicago is "wonderful", still scowl when I note the terrible street-crime problem plaguing downtown, near-north, and previously safe north-side neighborhoods. They think I'm exaggerating, because they get their news from Trib and NYT, don't read CWB and SCC blogs, and consciously ignore what's literally happening on their own residential block.
Willful ignorance.
Honestly, does anybody not see this coming? The next 10 years (minimum) are going to be real bad folks...(or people)
Chicago's future has already been written. It just needs to unfold. There is a lot of wrongheaded political thinking in Chicago, Cook County, and Illinois) running Chicago's next 10 years. It is already inevitable. Get out as soon as you can. It is going to be a bumpy ride...
I heard a guy talking a political insider that Joe Biden sleepy Joe. He’s going to step aside and put Mike Obama in to run for president around May or June because they’ll be less time to criticize him and like he said about Michael bomber if it has an apple, it definitely has a banana!
While I am sure that crime has something to do with it, what we are seeing in the real estate market is the result of higher interest rates. The low rates from 2009 until 2022 just built up another bubble in real estate that is now correcting. That is the way a market economy works. The monthly payment on a loan with a 7% interest rate is obviously much higher than a loan with a 3% interest rate. The prices for homes and condos that people are able pay, even on the high end, has to come down as a result.
Soon George Soros can snatch up all those properties for Pennie’s on the dollar, then fund the campaign of a tough on crime SA and Governor
My pretty loft may not be worth much anymore.
Noe, kees me you fool!!!!
The sword of Damocles is swinging above your heads ! Get out while you still can, cut your losses, safe yourselves, and families !
Will Chicago become the next Detroit? Only if it is very, very lucky.
When Detroit imploded, it was over the course of several decades; Chicago is collapsing at a much faster rate. Where Detroit still has a functioning downtown (surrounded by acres of formerly working-class neighborhoods slowly returning to forest and prairie), Chicago’s downtown is being actively destroyed at an alarming rate.
With a little bit of luck, Chicago will destroy itself without taking the banking system down with it, but Chicago will never again be a vibrant major city. Perhaps, one of the suburbs will take over, but that’s for the future to decide.
Meanwhile, sell at a loss and get out now or be prepared to abandon your homes and businesses when their value drops to zero.
I say we rename the city..."New Venezuela" our economy is going to be about the same very soon
The DSC is-a-coming. Check your homeowners insurance there is no coverage when they declare war on half the country.
+++=
Plus two from that H.S. shooting the other day. Cease fire in Gaza tho from the river to the sea..
Data overwhelming shows Illinois is losing population and people to other states. The Census, the IRS and several moving companies have published migration and population figures that show Illinois is shrinking. Now we can add the National Center for Education Statistics data to the pile. Their latest data shows Illinois lost nearly 225,000 public K-12 students between 2010 and 2021 – the nation’s 2nd-most behind only California.
The Chicago Transgender Union (CTU) in Charge of the Chicago Pre-Prison Schools (CPS) is not happy about losing that token money.
Mayor Brandon Johnson’s job performance rated fair to poor by majority of Chicago voters, new poll finds – Chicago Sun-TImes
January 26, 2024
The CTU's Stacy Davis-Gates said, "Of course, when you have a Black man who is the mayor of this city advocating for the humanity of these Black children and for the equity of these Black children, of course they would put out an instrument that says something counter to that.”
From the river to the lake Chicagoan's are cutting bait..???
Chicago has TIF districts all over. TIF money is required to be spent/invested on properties within the TIF. If investments are not being made on those properties, the TIFs will expire and all of the taxing bodies (city general fund included) will get a windfall. While that does offer a lifeline, it will be a short lived lifeline with nothing left to survive on. It’s kind of like draining your IRA/401k.
I suspect with such reckless governance, insurance companies may consider: exponential rate increases, drop certain neighborhoods or drop the city completely. Maybe it’s time to resurrect Mrs. O’Leary and ol’ Bessie while the premiums are paid. Then I can look forward to the new blog “third city cop”.
In the middle of the growing real estate meltdown, developers are moving ahead with a significant high rise rental project at 400 N. Lake Shore Drive. One notable feature of the project is that 20% of planned 635 rental units must be “affordable housing”. Financing is expected from the Illinois Housing Development Authority.
So, putting low-mod income rentals into that area, will help reverse the market decline? You be the judge.
https://chicago.urbanize.city/post/400-lake-shore-drive-shows-signs-life
The only ones getting hammered are the newbies.
The old bastards that created this goatfuck bought decades ago.
They are wailing to the media (and the IRS), "WOE IS ME! My $5mil condo is now only worth $2mil!"
without ever mentioning that they bought it for $100k in 1980.
This and those same leftie swells who live in these places now have to send their kids to school with the riff raff now that BJ is closing the selective enrollment schools. How will the maintain their liberal credentials when they send little Biff to private schools. LOVE IT
years on cpd, purchase house in Beverly. What a mistake, go up and down western looks like Englewood.
1/27/2024 06:54:00 AM
Your mistake was buying down there in the first place. Alot of southwest siders have abandoned and move to far northwest side.
“Anonymous Anonymous said...
The sword of Damocles is swinging above your heads ! Get out while you still can, cut your losses, safe yourselves, and families !
1/27/2024 10:59:00 AM”
Sold the house in the Spring of 2021.
Sold the rental property in the Summer of 2023.
Retiring in less than 3 months.
Goodbye Chiraq!
Hello eastern Tennessee!
“Anonymous said...
I always thought as prices in the blue shit-holes dropped as many people fled, the prices in the red states would continue up. You know, the whole supply/demand thing. It appears prices in red states like Tennessee and Idaho are dropping too. Been watching some pretty significant price cuts there - maybe not to the extent Illinois is though. Rural areas seem to be holding up better than urban. Guessing everything will shake out in the next few years for a bottom. The last R/E bust took about 5 years from 2007 to 2012.
1/27/2024 05:39:00 AM
1/27/2024 08:34:00 AM”
Real estate markets generally do not correct until unemployment spikes past 5% and it’s currently mid 3’s.
When houses sit on the market longer prices will generally decline. Many folks and people are choosing to stay put in their lower mortgage rate than sell and rebuy at double the rate. That also causes houses to sit on the market longer.
Prices will continue to weaken.
“Anonymous said...
Got out last summer when I sold my NW side 2-flat. Underperformed inflation by $125,000 over the course of 21 years ownership. What’s the cliche say? Slowly at first, then all at once! Did not want to be holding the bag with an old building in a rapidly declining neighborhood. Finally got a solid buyer with conventional financing after several flaked out because they couldn’t get their FHA loan.
1/27/2024 07:49:00 AM”
Nationally the “slowly at first” began with the installation of Obama and in Chicago the9.5 digit ballerina. The “all at once” is approaching.
Prepare accordingly!
REVOLVERMAN SAYS:
Too much credit has been allotted to deadbeats with no collateral, and they are allowed to abandon ship with no punishment for defaulting on loans. Then the costs of the debts are tricked down to the usual chumps who have been stuck paying for everything and everyone, the Middle Class US Taxpayers. Quit voting Democrat and quit voting for entrenched career politicians. They are the ones who could curtail much of this but won’t because they get kickbacks under the table to allow it to continue. It’s a game they play and don’t care if they lose, because they are playing with YOUR money, NOT theirs.
Anonymous Anonymous said...
While I am sure that crime has something to do with it, what we are seeing in the real estate market is the result of higher interest rates. The low rates from 2009 until 2022 just built up another bubble in real estate that is now correcting. That is the way a market economy works. The monthly payment on a loan with a 7% interest rate is obviously much higher than a loan with a 3% interest rate. The prices for homes and condos that people are able pay, even on the high end, has to come down as a result.
1/27/2024 10:14:00 AM
Monthly assessments are skyrocketing. Even if you find one that seems to be reasonably priced, the fee puts it way out of reach.
You think your home’s value is going to go down? Wait for them to lift residency. Think long and hard before we agree to this. Your 575,000 house on the Northwest Side will be worth half and the crime rate will quadruple. Before you respond to this just think for a couple of minutes and you’ll realize that I’m right. DON’T LIFT RESIDENCY!!!!
PM
Anonymous Anonymous said...
You think your home’s value is going to go down? Wait for them to lift residency. Think long and hard before we agree to this. Your 575,000 house on the Northwest Side will be worth half and the crime rate will quadruple. Before you respond to this just think for a couple of minutes and you’ll realize that I’m right. DON’T LIFT RESIDENCY!!!!
1/28/2024 05:43:00 PM
Not my problem, not all of us paid too much for a house we can barely afford on a police salary. If residency was lifted I would have a sign in front that very day. Off to Kane/McHenry county where crime is enforced and dude inc isn’t close by. See ya!
Quit dreaming about residency. It’s not going to happen courts have upheld its legality and the new Safe T Act has taken away any chance to negotiate it which is the way that cities that won residency accomplished it
The SAFE-T Act implements several reforms to how policing is done in the state and how police officers are held accountable for misconduct. The law:
Restricts the ability of police officers to negotiate residency requirements in cities of over 100,000 people
Gives the Illinois Attorney General additional authority to investigate civil rights violations committed by police officers
Allows anonymous complaints against officers and eliminates the requirement to sign a sworn affidavit
Requires the retention of misconduct records and requires increased reporting of crime statistics and use-of-force information by police departments
Adds several restrictions to what constitutes a police officer’s justified use of force, including banning chokeholds, clarifications on when deadly force is justified and execution of search warrants
Requires all law enforcement agencies to use officer-worn body cameras by 2025.
Anonymous said...
This is absolutely wonderful news. If the clueless, rich white liberal douchebags who inhabit these north side neighborhoods get far enough underwater on their huge mortgages then they won't be able to sell. That means this trash won't be able to move to a red state and pollute it with their garbage mindset.
Not to worry, though. I hear the city will give them a few sheckles to put toward their mortgage if they agree to take in some illegals.
1/27/2024 12:36:00 AM
STFU and stop celebrating this. Plenty of CPD own homes on the North Side. This isn’t just a problem libs are running into.
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