Neighborhood Update – Wicker Park/Bucktown

In this week’s update I will focus on condos in Wicker Park and Bucktown. While there are plenty of housing options in Wicker Park and Bucktown, there are not the exorbitant levels of inventory seen in some other areas of the city.  However, there has been an influx of luxury condo developments, six to twelve unit, new construction buildings with very high end finishes. 

In order to paint a picture of the current market, 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 January.

Hence, there were 22 closings of condos in Wicker Park and Bucktown in January. (ranging in list price from $131,000 to $1,124,900)

There are 294 units currently on the market (ranging from $199,900 to $824,500)

 Therefore, it would take approximately 13.3 months to absorb the current inventory.

Meaning for Sellers:

The absorption rate in Wicker Park and Bucktown is consistent with what I have seen in most neighborhoods in Chicago. (10 to 15 months of inventory)  This is a decrease from much of last year and reflects the slowing of new construction and an increase in willing and able buyers entering the market.  13 months of inventory still indicates and overstock of homes and if you are planning to sell now your home needs to be priced competitively and kept in excellent showing condition.  Visit the “current homeowners” section for tips on how to make your home show like a model.

 Meaning for Buyers:

From the purchasing stand point, a 13month supply provides a wealth of options to choose from.  Searching through this much inventory can be intimidating for some buyers, specifically those making their first purchase.  Good Realtors should be constantly viewing property.  This expertise, coupled with a proper buyer interview will streamline the search for a buyer and allow them to focus only on the properties that truly fit the needs they have communicated to their agent.  Visit the “How to Buy a Home” page for an explanation of the home buying process.

I would like to highlight two units new on the market this week in Wicker Park and Bucktown. 

 1. 2228 W. Belden #2E - Incredibly upgraded three bedroom, two and a half bath penthouse duplex.  Unit boasts a private roof top deck (50 x 16) and panoramic skyline views. Plus top of the line finishes including Viking and Sub Zero appliances as well as Grohe and Toto fixtures.  Garage parking is included for a listing price of $689,500.

2. 2302 W. North Ave. #2E - Upgraded two bedroom, two bath condo with wide open floor plan.  Intimate 8 unit elevator building with roof top deck and skyline views.  In addition to these features the unit comes with a parking space and has extremely low assessments at $125/month.  Listing price of $369,900.

 Contact me if you have further questions about any of the properties mentioned here or would like to schedule a showing. If you would like to see a neighborhood update for another area or a different type of home, leave a comment stating your interest.  If any one area garners enough comments, I’ll gladly do the research and provide a post.

Best,

JLC

Preparing Your Home for Sale

With all the new construction currently on the market, individual re-sales are forced to compete with homes that have never been lived in.  This puts a premium on condition.  Since you will have to compete with model homes in this market, here are some tips on making your home show like a model.

1. Remove Clutter – Any items that you do not use weekly should be moved to storage.  Considering hiring a cleaning service to give your home a full once over before you go on the market. 

2. Remove Personal Items – When viewing a home buyers want to be able to picture themselves living in the space.  This is difficult to achieve when surrounded by your wedding pictures, baby photos, and last years’ Christmas card starring Fido as Rudolph.  I understand they are keepsakes, but until your home is sold….storage.  Also, remove any small collectibles sitting on mantles, counters, or bookshelves.

3. Smell Matters – From the moment a prospective buyer walks through the door of your home they are forming opinions.  It is not just how your home looks, but how it smells as well.  Pet scents, exotic foods, and dirty laundry can all leave lasting aromas that you’ll want to counter act.  I would suggest air fresheners hold an aromatic oil.   You place reeds in the oil and over time the reeds soak up the oil and slowly diffuse the smell throughout the room.  They are perfect for maintaining a light fresh scent.  Keep it simple when searching for the fragrance, vanilla, light floral scents, and anything that is reminiscent of baking

4. Make it Easy to Show- Your listing needs to be accessible.  Model homes are open daily, in some cases for up to eight hours.  If you receive a showing request and tell the buyer “no, only Wednesdays at 3:15″ You are likely to never hear from them again.  There is simply too much inventory on the market.  While this is an extreme case, make showings as flexible and easy as possible.  Remember the goal here is getting your home sold at the best price possible in a reasonable time frame.  You just have to decide that the slight inconvenience is worth getting your home sold.

5. Professional Staging - Last but not least, hiring a professional stager can be well worth the expense.  Specifically if you are selling a luxury home.  Price, condition, and location are you major determining factors.  While you must price competitively, due to the type of competition, showing condition becomes a great predictor of a successful sale.

For more tips follow the link below:

http://realtytimes.com/rtpages/20080214_improvements.htm

 Best,

JLC

Home Prices and Interest Rates, Playing the Waiting Game

I have recently had multiple conversations with prospective buyers.  In these conversations the same concern seems to pop up continually, to paraphrase, “I just want to wait until prices drop a little further and I can still get a low interest rate”.  This line of reasoning concerns me for two reasons.  First, the two factors mentioned here, home prices and interest rates, do not move in tandem.  To that end, we have not seen a major rebound in housing prices, but according to Realty Times’ David Reed, “mortgage interest rates shot up this past week at the fastest pace in 20 years…”  Second, there is no moment of critical mass where home prices and interest rates will be at their absolute lowest and then begin to rebound together.  If this moment existed everyone would take advantage, it is simply not that easy. 

So how do you make a decision?  Look at a number of variables and act when more are in your favor than against you. The following speak to current conditions:

1. Extensive inventory on the market (Sellers competing for buyers who are willing and able)
2. Interest rates are some of the lowest in the last 40 years (Money is cheap to borrow)
3. New construction is at a 17 year low (Inventory will start to diminish allowing prices to rebound)
4. Personal Preference and Judgment (Would you be happier in a home you own?)

Click the link below for the full article:
http://realtytimes.com/rtpages/20080222_realtyviewpoint.htm

 Best,

JLC