Neighborhood Update – Lincoln Park

 The goal of these neighborhood updates is to highlight specific properties that I have viewed this week in addition to addressing some neighborhood market trends.  Here I’ll specifically cover two bedroom condos in Lincoln Park.

 Like most areas, Lincoln Park is saturated with inventory.  To illustrate this point I will be using absorption rate.  Absorption rate indicates how long it would take for the current inventory in an area to be purchased if the rate of consumption continued at a steady pace.  In order to determine that pace I’ll use the number of closed units in the last thirty days.

Hence, there were 5 closings of two bedroom condos in Lincoln Park over the last 30 days. (ranging from $270,000 to $748,000)

There are 241 units currently on the market (ranging from $359,000 to $599,000)

 Therefore, it would take just over four years to absorb the current inventory. 

Meaning for Sellers:

 If you’re selling a two bedroom condo in Lincoln Park, ideally you should hold off listing it until some of the current inventory is sold.  If waiting is not an option, it is of utmost importance that a seller understand the general amount of competition out there and moreover, have the willingness to price your property according to market conditions and the direct competition to your unit.  A good realtor is crucial to effectively marketing a property under these circumstances, perhaps someone that understands absorption rates and how they effect not only the market as a whole, but also buyers and sellers specifically. 

Meaning for Buyers:

 From the purchasing side, four years of inventory on the market provides a buyer a unique opportunity.  The chance to search out a good deal in an area where they are generally hard to come by.

 I would like to highlight a couple buildings I visited last week: 

 1.  The Altgeld Club at 1350 W. Fullerton – There are currently 2 units available in this 60 unit loft building.  Like most loft buildings altgeld boasts high ceilings and spacious floorplans, however, the bedrooms are enclosed with either a full wall, or glass block.  This goes a long way in providing solace to those who are turned off by lofts because of the lack of privacy.

2. Sono at 1454 N. Dayton is in essence sandwiched between Old Town and Lincoln Park.  This building is currently under construction and delivery is expected by fall of 2008.  As far as virtues to extol, location, walls of windows, and quality marble, granite, and appliance standards top the list.

 If you have further questions about any of the properties mentioned here, or would like a neighborhood update for another area please feel free to contact me.

Best,

JLC