Neighborhood Update – Lakeview

In this week’s update I will focus on two bedroom condos in Lakeview.  Like most every neighborhood in Chicago, there are a multitude of condos currently on the market and in addition, some planned new construction.  I will be using absorption rate to illustrate exactly how much inventory is out there.  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 27 closings of two bedroom condos in Lakeview during January. (Ranging in sales price from $214,900 to $586,000)

There are 410 two bedroom condos currently on the market. (Ranging in list price from $184,900 to $675,000)

 Therefore, it would take approximately 15.2 months to absorb the current inventory. 

Meaning for Sellers:

 If you’re selling a two bedroom condo in Lakeview, ideally you should hold off listing it until some of the current inventory is sold.  If waiting is not an option or you plan to buy a larger home, it is of utmost importance that a seller understand the 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 essence, this means pricing your property the lowest or second lowest within the building or among comparable properties.  Units are certainly still moving, but the ones that are selling create value in the eyes of a buyer.  As with any other type of purchase, buyers determine value by comparison shopping.  A good realtor is crucial to effectively marketing a property under current market conditions.

Meaning for Buyers:

 From the purchasing side, a little over 1.25  years of inventory on the market coupled with still historically low interest rates provides a buyer a classic buy low opportunity.  The chance to search out a good deal in an area where they were previously hard to come by.  Case in point, I recently sold a duplex in Lakeview to a buyer for $505,000, it was originally listed at $575,000.

I would like to highlight two listings I visited this week in Lakeview. 

 1. The Lofts at 1800 - Technically in North Center, not Lakeview, but the development warranted mention here.  Located on quiet tree lined grace, yet still walking distance to Wrigley Field and the shopping and restaurants of Lakeview, Lincoln Ave, and the Southport Corridor.  Floorplans range from 1 bedroom and 1 bath to 3 bedroom + den and 2.5 baths in this six floor mid-rise development.  Most units feature an expansive terrace and indoor heated garage parking adds comfort and convenience.  Expected delivery in late 2008.  Prices range between $263,100 and $511,100.  Contact me for a showing: justin.conner@tregchicago.com.  For further details visit: www.loftsat1800.com

2. 1318 W. George, Unit 2B - Soft loft with two closed bedrooms.  18′ ceiling, exposed brick, and duct work make for a dramatic entertaining area in combined kitchen, living, and dining room.  Intimate elevator building with six total units.  Other feature include fully upgraded kitchen, 1.5 car garage, and roof top deck with skyline views.  Listed at $519,000.

 If you have further questions about any of the properties mentioned here, or would like a neighborhood update for another area please contact me or leave a comment stating the neighborhood.  If any one area garners enough interest, I’ll gladly do the research and provide a post.

Best,

JLC