chicago-condos & Chicago Real Estate & Chicago Homes pcherry on 02 Jul 2009 03:16 pm
Lincoln Park Home Prices Expected To Slide 15% This Year
July 2, 2009 - Lincoln Park recently got some attention and a new title in Forbes Magazine. The affluent Chicago neighborhood was listed in an article titled “America’s Most Troubled Luxury Neighborhoods” among several other cities including Santa Monica, California and Greenwich Village, New York. The article stated that while the housing market in most neighborhoods across the country have either hit bottom or come close, depending on who you talk to, the wealthier neighborhoods remained somewhat insulated. That reprieve may be over though, as Forbes says that these high-priced neighborhoods such as Lincoln Park are forecast to have Chicago condo and home prices drop from 15% to 25% this year.
The article attributed the time lapse to the lack of foreclosures in trendier, wealthier neighborhoods and the recent closings of condos that were contracted at much higher prices a couple of years ago before the market went south. The alarm bells ring when there is more than a seven month supply of inventory because that causes prices to start dropping.
According to the article, Wagner Appraisal Group estimates that there is a 16 month supply of homes in Lincoln Park. Some condos and single-family homes are taking as long as 11 months to sell, and then only after lowering the asking price. With the constantly increasing inventory, Lincoln Park prices may well be on their way to the predicted fall of 15% this year. This would follow the Chicago real estate market trend for ‘08, and Lincoln Park usually has a lag time of a year in following in-town Chicago home pricing trends.
That being said, if you’re one of the few in the market for Luxury Chicago Condos in that neighborhood, you may want to wait a bit longer before making a purchase.
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