Neighborhood Update – Lincoln Park

 While not as saturated as the last quarter of 2007 (check previous posts), Lincoln Park is still full of 2 bedroom condos for sale.  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, assuming no new units come onto the market.  In order to determine that pace I’ll use the number of closed units in the last thirty days.

Hence, there were 7 sales of two bedroom condos in Lincoln Park over the last 30 days. (ranging in list price from $335,000 – $849,000)

There are 198 units currently on the market (ranging from $250,000 – $1,386,000)

 Therefore, it would take approximately 2.4 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 the effects on buyers and sellers specifically. 

Meaning for Buyers:

 From the purchasing side, a little under 2.4  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.

To this end, I would like to discuss the vast range of price points available in Lincoln Park. 

 Some developments, for instance, Lincoln Park 2520 (www.lincolnpark2520.com), warrant the million dollar price tag do to their ammenities, space, and uniqueness.  While others, are priced sheerly based on reputation of the neighborhood.  In a buyer’s market, like this one, these listings will not sell.

This week I would like to highlight two properties that were not only in excellent condition, but also priced appropriately and extrememly salable.

 1. 1664 N. Dayton – Two bedrooms and two baths with parking listed for $435,000.  Dayton is a quiet residential street with easy access to all shopping, restaurants and night life that Lincoln Park has to offer.  The only draw back is that this unit is not fully update, but for $100,000 less than units of comparable size, you can do the upgrades yourself and save a penny or two, or acutally a million.

2. 2636 N. Orchard – Two bedrooms and two baths on the top floor or a sixteen unit building listing for $409,000.  This unit includes access to multiple rooftop decks and feels like a loft with some exposed brick and ductwork, but all bedrooms are closed.  The only draw backs are four flights of stairs and that there is no parking included, but there are multiple rental parking options within a short radius.

 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