We knew that home prices were skyrocketing in Chicago's Ukrainian Village and East Village neighborhoods ever since I moved here (I do believe there is a direct cause and effect relationship) but in the past week there were a couple of closings that really drove the point home. And while poking around I discovered another sale back in October that matched these two in terms of price appreciation. All 3 of these homes were bought pretty close to the bottom of the housing market in 2012.
First, consider 1854 W Erie which is a Noah Properties home built in 2012 and about 4200 square feet with 5 bedrooms and 3 1/2 baths. It was purchased in September 2012 for $878,500. The buyers probably put in another $50,000 for their garage deck and window treatments. Not even 4 years later it just sold last week for $1,303,500! Let me do the math for you. That works out to a tad over 40% appreciation.
Then on Friday 1842 W Erie, which is a very similar Noah Properties home built in 2011, sold for $1,350,000. It was purchased in December 2011 for $865,000 and let's assume those buyers also put in another $50,000 in upgrades. That means they realized 47.5% appreciation.
Now, what's really interesting about the 1842 W Erie sale is that it is basically in line with fairly recent sales of very similar but brand new Noah Properties homes in the neighborhood, indicating that there is not much of a premium, if any, given to "new". For instance 1929 W Erie closed in April for $1.3 MM and 1736 W Erie also closed in April for $1.406 MM. I have not seen the interiors of either of these homes in person but from the photos it looks like 1929 W Erie is fully pimped out. There were no photos of 1736 W Erie but there is one difference from the other homes in that they managed to squeeze in a very tiny 4th bedroom on the second floor. Of course, I'm pretty sure that neither of these homes came with window treatments or all the deck accoutrements that 1842 W Erie has.
And then there's the home at 2113 W Huron that closed back in October. It was also built in 2012 and is at least 4200 square feet with 4 bedrooms and 3 1/2 baths. According to the tax records it originally closed in October 2012 for $787,500 and then resold in October 2015 (in only 3 days) for $1,160,000. So that's 47% appreciation in just 3 years! Since the original sale did not go through the MLS I wonder if it might have been a custom build.
I've included a slideshow below for the Huron home. The finishes are just a cut below that of the Noah Properties homes but still very nice. It seems to have been a good buy for the neighborhood.
Created with flickr slideshow.
#UkrainianVillage #EastVillage #ChicagoHomePrices
Gary Lucido is the President of Lucid Realty, the Chicago area's full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insider's view of the seamy underbelly of the real estate industry, or you just think he's the next Kurt Vonnegut you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.