Neighborhood Update – South Loop

In early 2008, specifically March, the south loop has 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 has reduced market times and 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 February. 

Hence, there were 156 closings of condos in the South Loop during March. (ranging in sales price from $128,000 – $1,900,000)

There are 1254 condos currently on the market (ranging from $144,900 – $4,250,000)

 Therefore, it would take approximately 8 months to absorb the current inventory. 

Meaning for Sellers:

Absorption rates were much higher in 2007.  Eight months of inventory demonstrates a return toward normalcy in the South Loop.  At about 6 months of inventory the market is said to be balanced.  Any lower than four months and you can call it a seller’s market.  I would still suggest that if you’re selling a condo in South Loop, you should hold off listing it until some of the current inventory is sold, the new construction inventory will make your task all the more daunting.  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. 

Meaning for Buyers:

 From the purchasing side, eight months of inventory still allows a buyer to be selective in their purchases by searching out the best prices, terms, and conditions.  Whether purchasing new construction or a resale unit, opportunity abounds.

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

1. Eco 18 at 1818 S. Wabash - New Green Development featuring geothermal heating and cooling, solar hot water, energy recovery systems and a rooftop garden.  Standards include bamboo flooring, stainless steel appliances, and all the modern touches you would expect from a new construction development.  Floorplans range from 1 bedroom 1 bath to 2 bed 2 bath and a den.  Prices range from $279,900 to $659,900. For further details visit: www.eco18.com

2. Lakeside Lofts 1025 – 1035 S. Indiana - Developer Close Out.  1 bedroom, 1 bedroom + den and two bedroom floorplans still available.  Prices range from $245,800 to $395,800. Incentives include a free Garage Parking spot

If you would like to see any of the properties mentioned here, or would like a neighborhood update for another area please feel free to contact me. justin.conner@tregchicago.com

Best,

JLC

Neighborhood Update – Lincoln Park

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 February. 

Hence, there were 36 closings of condos in Lincoln Park during February. (ranging in list price from $152,000 – $2,317,500)

There are 612 condos currently on the market (ranging from $149,900 – $13,066,900)

 Therefore, it would take approximately 17 months to absorb the current inventory. 

Meaning for Sellers:

Absorption rates reached over two years in Lincoln Park in 2007.  January saw the absorption rate fall to a little over one year.  February was slower than January which is not uncommon.  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. 

Meaning for Buyers:

It’s a buyer’s market.  While lending standards have become more strident, for those that qualify to buy a wealth of opportunity abounds. Whether buying a first home, or buying up to the dream home, a buyer can be selective in their purchases and search out the best prices, terms, and conditions.

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

1. 2620 N. Halsted #2 - New construction three bedroom two bath condo.  Includes two decks and two parking spaces.  Exquisite millwork matches Brazilian cherry hardwood floors.  All the upgrads one could ask for with marble baths, body sprays, and rain showers.  Finishing touches include a fully organized closet and high end appliances.  Listed at $577,000.

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

Neighborhood Update – South Loop

In early 2008, specifically February, the south loop has 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 February. 

Hence, there were 102 closings of condos in the South Loop during February. (ranging in sales price from $178,000 – $1,550,000)

There are 1226 condos currently on the market (ranging from $146,000 – $4,250,000)

 Therefore, it would take approximately 12 months to absorb the current inventory. 

Meaning for Sellers:

Absorption rates were much higher 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 South Loop, ideally you should hold off listing it until some of the current inventory is sold, the new construction inventory will make your task all the more daunting.  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 February 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 year of inventory still allows a buyer to be selective in their purchases by searching out the best prices, terms, and conditions.  Whether purchasing new construction or a resale unit, opportunity abounds.

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

1. The Columbian at 1160 S. Michigan - Positioned on Michigan avenue with easy access to everything that Chicago has to offer including Chinatown, Little Italy, Greektown and Pilsen.  This building was designed to maximize views of the Chicago skyline, Grant Park, and Lake Michigan.  Full amenity building with one, two and three bedroom units ranging from $355,000 to $2.5 million for penthouses.  Heated garage parking is available.  Available for immediate delivery.  For more details visit: www.thecolumbian.chicago.com 

2. 1111 S. Wabash #2602- North East corner unit with views of Chicago Skyline, Lake Michigan, and park.  Three bedrooms, two and a half baths and 2600 square feet provide all the space you will require.  Plus two parking spaces.  55 x 20 terrace includes a built in Viking grill.  Fully upgraded in full amenity building, listing for $1,349,000. 

 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