Chicago Mid-Month Market Update
For Lincoln Square Condominiums
How does one compare an apple to another apple when they are two different varieties?
I believe the above question is “spot on” when trying to put a selling price tag on a Chicago Condominium. My logic is basic and that being that one condominium could be converted into condominiums by one developer that understands construction and understands resale value. The other condominium could be a partial job and the old roof is still on the building and tuckpointing wasn’t considered or was done in “spot” sections and not entirely.
Generalizing:
In 2008 the median value for all condominiums was $300,000. Then in 2009, Lincoln Square condos crested up towards $325,000 but that was probably because of those properties that were being built, had gone under contract 14 months prior and were no closing. Then in 2010, we took a serious drop down towards $275,000. Remember, this is all condominiums, all types of sales and it includes the distressed sales as well as upper bracket sales. So, is this thermometer reading for 2010 a truism? No!
In 2011, we sliddown the hill some more in median value but then started going back up the hill in August 2011 and then dropped down another 10K in value in September and are still hovering in that median price. Again another false value.
This is what you need to look and gauge where the market really is:
Short Sales: Have a 15.5 month supply. In 2009 the median selling price was $160k, 2010 it was $123,000 and right now it is holding steady at $120,625.
REO Sales: (commonly known and referred to as Real Estate Owned): There has been a significant crop of -40.5% in inventory (which is a good thing for Lincoln Square and you will see why shortly!). The REO Monthly Inventory right now is 2.3 months!
Traditional Sales: We are increasing in Monthly Inventory and currently have 11.8 months supply. Granted, this means that it is still a buyer’s market but it also means that home sellers understand that the market is holding in Lincoln Square and while we have a ways to go, it is a good sign for most who have said: “Let’s sell now.”
The Median for Traditional Sales was $270K in 2009, and crested upwards to $282K and then adjusted down towards $265K where we stand today. Again, this includes every last Short Sale, REO Sale and Traditional sale including bedroom count and price range.
So, while some think the sky is falling, I say, from these reports and analysis that we are stabilizing. Why: Biggest indicator is that we have a low REO inventory and that says a huge amount of plus for Chicago’s Lincoln Square Neighborhood!
Want to know where the value range where your property is? Send me an email and I will give you a more definitive range based on location, size, bedroom, utility, condition – similar to what the new guidelines for the appraisers have to follow.
BTW, don’t forget to ask me about my “Jump Start™” Program.
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