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

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

 While not as saturated as the last quarter of 2007 (check previous posts), Lincoln Park is still full of 2 bedroom condos for sale.  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’ll use the number of closed units in the last thirty days.

Hence, there were 7 sales of two bedroom condos in Lincoln Park over the last 30 days. (ranging in list price from $335,000 – $849,000)

There are 198 units currently on the market (ranging from $250,000 – $1,386,000)

 Therefore, it would take approximately 2.4 years to absorb the current inventory.

Meaning for Sellers:

 If you’re selling a two bedroom 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.  A good realtor is crucial to effectively marketing a property under these circumstances, perhaps someone that understands absorption rates and how they effect not only the market as a whole, but also the effects on buyers and sellers specifically. 

Meaning for Buyers:

 From the purchasing side, a little under 2.4  years of inventory on the market provides a buyer a unique opportunity.  The chance to search out a good deal in an area where they are generally hard to come by.

To this end, I would like to discuss the vast range of price points available in Lincoln Park. 

 Some developments, for instance, Lincoln Park 2520 (www.lincolnpark2520.com), warrant the million dollar price tag do to their ammenities, space, and uniqueness.  While others, are priced sheerly based on reputation of the neighborhood.  In a buyer’s market, like this one, these listings will not sell.

This week I would like to highlight two properties that were not only in excellent condition, but also priced appropriately and extrememly salable.

 1. 1664 N. Dayton – Two bedrooms and two baths with parking listed for $435,000.  Dayton is a quiet residential street with easy access to all shopping, restaurants and night life that Lincoln Park has to offer.  The only draw back is that this unit is not fully update, but for $100,000 less than units of comparable size, you can do the upgrades yourself and save a penny or two, or acutally a million.

2. 2636 N. Orchard – Two bedrooms and two baths on the top floor or a sixteen unit building listing for $409,000.  This unit includes access to multiple rooftop decks and feels like a loft with some exposed brick and ductwork, but all bedrooms are closed.  The only draw backs are four flights of stairs and that there is no parking included, but there are multiple rental parking options within a short radius.

 If you have further 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

 The goal of these neighborhood updates is to highlight specific properties that I have viewed this week in addition to addressing some neighborhood market trends.  Here I’ll specifically cover two bedroom condos in Lincoln Park.

 Like most areas, Lincoln Park is saturated with 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.  In order to determine that pace I’ll use the number of closed units in the last thirty days.

Hence, there were 5 closings of two bedroom condos in Lincoln Park over the last 30 days. (ranging from $270,000 to $748,000)

There are 241 units currently on the market (ranging from $359,000 to $599,000)

 Therefore, it would take just over four years to absorb the current inventory. 

Meaning for Sellers:

 If you’re selling a two bedroom 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.  A good realtor is crucial to effectively marketing a property under these circumstances, perhaps someone that understands absorption rates and how they effect not only the market as a whole, but also buyers and sellers specifically. 

Meaning for Buyers:

 From the purchasing side, four years of inventory on the market provides a buyer a unique opportunity.  The chance to search out a good deal in an area where they are generally hard to come by.

 I would like to highlight a couple buildings I visited last week: 

 1.  The Altgeld Club at 1350 W. Fullerton – There are currently 2 units available in this 60 unit loft building.  Like most loft buildings altgeld boasts high ceilings and spacious floorplans, however, the bedrooms are enclosed with either a full wall, or glass block.  This goes a long way in providing solace to those who are turned off by lofts because of the lack of privacy.

2. Sono at 1454 N. Dayton is in essence sandwiched between Old Town and Lincoln Park.  This building is currently under construction and delivery is expected by fall of 2008.  As far as virtues to extol, location, walls of windows, and quality marble, granite, and appliance standards top the list.

 If you have further 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