Neighborhood Update – Lincoln Park

In January of 2008 we have seen an increase in market activity above that of the fourth quarter of 2007.  Market statistics indicate an increase in buyers entering the market which should reduce market times and begin to reduce the excess 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, assuming no new units come onto the market.  In order to determine that pace I will use the number of closed units in the month of January. 

Hence, there were 43 closings of condos in Lincoln Park during January. (ranging in list price from $149,000 – $1,380,000)

There are 529 condos currently on the market (ranging from $134,900 – $13,066,900)

 Therefore, it would take approximately 12.3 months to absorb the current inventory. 

Meaning for Sellers:

Absorption rates reached over two years in Lincoln Park in 2007.  While a little over a year of inventory is still quite a bit, the drop off from last year bodes well for the market leveling in 2008.  If you’re selling a 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.  In January there were instances of listing a property and accepting an offer within a month.  It can be done, but a good realtor is crucial to effectively marketing a property under these circumstances.

Meaning for Buyers:

 From the purchasing side, a little over a year of inventory still allows a buyer to be selective in their purchases by searching out the best prices, terms, and conditions.

I would like to highlight a couple listings I saw this week while previewing property: 

1. 1920 N. Howe #1R – Uniquely designed Lincoln park duplex.  Three bedrooms, two outdoors spaces and a truly open and livable floor plan.  Parking is included and the unit is priced extremely well for its location.  Listing for $484,000 

2. Lincoln Park 2520 - New construction development sits on three acres of prime parkfront real estate where Columbus hospital used to stand.  Designed by renowned architect Lucien Lagrange. Lincoln Park 2520 offers luxury living at its finest with unparalleled amenities including, a concierge service, fitness center complete with massage rooms and a dance studio, and one acre landscaped garden including a dog run.  Not to mention the finest finishes and abundant square footage.  To schedule a showing contact me. justin.conner@tregchicago.com For further details go to: www.lincolnpark2520.com

 If you have 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