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

Price Indexes Conflict, Housing Market Difficult to Track

The two best measures of housing prices, the Office of Federal Housing Enterprise Oversight’s index (OFHEO) and the Standard and Poor’s/Case Shiller index, reflect discrepencies in the state of the current housing market.   

 A recent article from the Wall Street Journal Online states “Ofheo’s index says home prices rose nationally by 1.8% between the third quarters of 2006 and 2007.  But the S&P/Case Shiller national index of home prices was down 4.5% in the same period.”  While based on the same concept, such inconsistency exists because of a dichotomy in the home sales each index uses to calculate market conditions. 

 In Chicago specifically, “Ofheo’s index shows an increase of 2.16% in house prices; the Case/Shiller index shows a decline of 2.48%” – Wall Street Journal Online

 For the full article click the link below:

http://www.realestatejournal.com/buysell/markettrends/20080215-wessel.html?refresh=on

 Best,

JLC

Buyers Benefit as Developers See Difficult Time Ahead

 Developers will face quite the quandary in 2008.  While demand is slowly rising, sales of new downtown condominiums and townhomes fell 36% last year.  6,000 new units will become ready for occupancy in 2008 and many developers will not be able to bare the financial burden if they are unable to move these units.  Case in point, the developer of Ashton Lofts on Ashland and Fullerton is facing foreclosure due to their inability to repay the bank for construction loans.  While this will not effect individuals who have purchased there, it will certainly alter the asking price for the remaining units.

Opportunity for buyers reigns supreme as developers offer incentive laden programs to entice the public into buying.  I have even seen developers offer 6 months of assessments, mortgage payments, and help with closing costs just to close out their developments.  Call me if you have any questions or are interested in these sort of opportunities.

View the article below for more detailed information:

http://chicagorealestatedaily.com/cgi-bin/news.pl?id=28206

Best,

JLC