Thursday, October 21, 2010

Foreclosures Rock Chicago and South Loop

A reader recently posted a comment with a chilling real estate article in today's Tribune. The article looks at the entire market but specifically calls out the Sloop:
"The reason (the South Loop) is getting crushed is it's only the South Loop in a good market," Greco said. "In a bad market, it's no man's land. In a good market, people assume neighborhoods will be expanding. When the market crashes, it's like the Sycamore or Moline of Chicago."

Kelly Cirignani, a sales agent at Patrick Jeffrey Realty, is working with a first-time homebuyer who until recently was looking specifically at newer construction in the South Loop.The client settled on a unit and was ready to make a 50 percent down payment, until his lender said it would not approve a mortgage in the chosen building. Cirignani now is scouting properties in Old Town and Lincoln Park. "He doesn't want anything to do with South Loop," she said. "I warned him before it (happened). I guess we didn't realize how bad it was."

In our opinion it's not as dramatic or bad as this real estate agent has made it sound. Yes, some buildings in the Sloop aren't good places to buy/invest in for a variety of reasons, but whenever you broadly paint neighborhoods it doesn't seem to do justice to the actual dynamics on the ground.


SL09 said...

Agreed. Look at Kensington Park I or II, or the single family homes around SL Elementary. Still selling and not at bargain basement prices. The article seems to equate SL real estate to SL high rises, which just isn't the case.

Anonymous said...

I could not agree more with SL09. Kensington Park I and II homes have maintained their value. The saturation of the SL with condos that have come down in value is not represenative of the entire SL.

Anonymous said...

Yeah, I wouldn't go to a Realtor for an educated analysis of anything. They're sales people and this one is now selling a new neighborhood.

Anonymous said...

I just recently refinanced my Dearborn Park condo. The appraisal came in right on target, no loss, actually a slight gain. The Tribune article is misleading and irresponsible. It paints a broad brush when in actuality the problems relate to new construction in a few buildings.

Anonymous said...

Folks, you're missing the point.

South Loop is a realtor's invention, and a relatively recent invention at that. That isn't to say no one lived here before the recent run-up; it is to say that it wasn't considered a neighborhood in a traditional sense until the neighborhood became all hot & trendy.

For those who are here for the long haul, who bought ten or fifteen years ago, the price of your home doesn't much matter. For those with shorter horizons, this is a rental market, not a buyer's market.

Sergey Bogo said...

I just bought on the Near South Side (South Loop) and it wasn't new construction or a high rise. Very excited, place is awesome. Gives me a sense of pride, ownership and I love the area. I'm supporting local businesses and this neighborhood has a good future. Doom and gloom sells - no one would open that tribune article if the title was at all positive. Everyone recovering from the recession HOPES that someone else is doing worse than them, and naturally will buy any nonsense that would satisfy that need.. South Loop is awesome! Let's keep it that way

Anonymous said...

I disagree that the South Loop is the "Moline of Chicago."

Moline has far more dining, shopping, and entertainment options than the south loop.