Neighborhood Update – Wicker Park/Bucktown

In this week’s update I will focus on condos in Wicker Park and Bucktown. While there are plenty of housing options in Wicker Park and Bucktown, there are not the exorbitant levels of inventory seen in some other areas of the city.  However, there has been an influx of luxury condo developments, six to twelve unit, new construction buildings with very high end finishes. 

In order to paint a picture of the current market, 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 January.

Hence, there were 22 closings of condos in Wicker Park and Bucktown in January. (ranging in list price from $131,000 to $1,124,900)

There are 294 units currently on the market (ranging from $199,900 to $824,500)

 Therefore, it would take approximately 13.3 months to absorb the current inventory.

Meaning for Sellers:

The absorption rate in Wicker Park and Bucktown is consistent with what I have seen in most neighborhoods in Chicago. (10 to 15 months of inventory)  This is a decrease from much of last year and reflects the slowing of new construction and an increase in willing and able buyers entering the market.  13 months of inventory still indicates and overstock of homes and if you are planning to sell now your home needs to be priced competitively and kept in excellent showing condition.  Visit the “current homeowners” section for tips on how to make your home show like a model.

 Meaning for Buyers:

From the purchasing stand point, a 13month supply provides a wealth of options to choose from.  Searching through this much inventory can be intimidating for some buyers, specifically those making their first purchase.  Good Realtors should be constantly viewing property.  This expertise, coupled with a proper buyer interview will streamline the search for a buyer and allow them to focus only on the properties that truly fit the needs they have communicated to their agent.  Visit the “How to Buy a Home” page for an explanation of the home buying process.

I would like to highlight two units new on the market this week in Wicker Park and Bucktown. 

 1. 2228 W. Belden #2E - Incredibly upgraded three bedroom, two and a half bath penthouse duplex.  Unit boasts a private roof top deck (50 x 16) and panoramic skyline views. Plus top of the line finishes including Viking and Sub Zero appliances as well as Grohe and Toto fixtures.  Garage parking is included for a listing price of $689,500.

2. 2302 W. North Ave. #2E - Upgraded two bedroom, two bath condo with wide open floor plan.  Intimate 8 unit elevator building with roof top deck and skyline views.  In addition to these features the unit comes with a parking space and has extremely low assessments at $125/month.  Listing price of $369,900.

 Contact me if you have further questions about any of the properties mentioned here or would like to schedule a showing. If you would like to see a neighborhood update for another area or a different type of home, leave a comment stating your interest.  If any one area garners enough comments, I’ll gladly do the research and provide a post.

Best,

JLC

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

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