As REALTORS, our job is to provide you with the data and analysis to help you make the best decision possible. So here's a bit of market information regarding Oakland/Douglas/Grand Boulevard (i.e. the primary neighborhoods the comprise "Bronzeville"):
- Bronzeville currently has 297 condo units listed for sale
- the average list price is $189,000
- the average market time for these units is a whopping 271 days (vs 231 days for Chicago overall)
- from July 2009 thru July 2010 the average sales price for a condo in the area was ~$133,000 (this represents sales history, which is quite important from an appraisal perspective)
This, along with corresponding rental data, is what we would use to help you figure out what decision makes sense for YOU.
I have a large number of Bronzeville clients (on the buy and sell side), so please let me know if you would like to discuss further.
Baird & Warner Realty
It really depends on your situation & finances. If you can stomach the loss, it may be a good idea to move forward with the sale. We are realistically looking at another few years before the market corrects, so don't hold out for a quick rebound.
That being said, it doesn't sound like your current situation is too dire. Although being in the red every month is not ideal a $15 a month hit is not terrible.
Review your finances & see if it makes sense to just cut your losses.
Of course we don't know your specifics, there may be other options. Have you tried to modify your mortgage to get the payment down a bit? this is a long shot on an investment property. But who knows you may have a lien holder that actually is interested in minimizing their losses - better to drop your interest rate so you keep the place (and keep paying the mortgage) than foreclose on an asset that is worth less than the lien.
I wish I had a crystal ball like some of the other posts, but frankly I don't know if the market will get better or worse in the short run. There is a TON of inventory on the market which will slow down recovery.
You are not alone in making this decision, and won't be for the foreseable future. I have clients who are in the exact same position as you. This is the advice I am giving them:
Inventory is generally so high, especially in Bronzeville, that the best we can hope for in one year's time is either a stabilization in prices, or simply a slower decline. The bottom line: Your investment will likely be worth less this time next year. If you can, I would continue to rent the property at the small loss you are currently experiencing for as long as you can. Popular wisdom has price recovery taking no less than five years. This also happens to be considered an optimistic estimate among my circle of colleagues. It's a matter of inventory, supply and demand.
If you cannot hold on to the property, your best option may be to try for a short sale, depending on your financial position in the investment.
Drop me a line any time if you would like to discuss your options. I am always happy to help.
Keller Williams Rlty
In general, when I speak with a potential client or friend about selling property these days, I recommend "If you can hold onto it and rent it, then do itl"
This is a rough market for sellers. It will get better eventually.
That being said, there ARE other considerations . . . .
You already have experience being a landlord - and it seems that it hasn't been a bad one for you.
Basically, it sounds like it will add up to 15 dollars/month x 12 of loss for you for the next year to hold on to the property (in addition to your time and trouble).
How much of a loss do you stand to take on the condo if you sell now? What is that dollar amount?
Which loss is worse?
The chicago housing market has not hit bottom yet.Meaning the price you will get today, will be much more than the price you will get one year from now. If your barely above water now, what sense does it make to keep it. I would only rent it out if you planned on keeping it another 5 years. Anyone who says chicago prices have bottomed out is trying to make a buck off you or doesnt know the market. Sales are up, prices are down, and will continue to slide.
Americorp Real Estate
Brokers Associate, e-PRO
The market has stabilized and should get better as time progresses, but no telling how fast this will happen.....probably not very fast. I would try to rent another year.