Prices eased in 1st quarter for prime lakefront houses For sheer snob
appeal in Chicago housing, nothing beats a posh single-family home
in Lincoln Park or a luxury condominium on the Near North Side. Among five prime
lakefront neighborhoods, a whopping 67.9 percent of the total dollar
volume of sales was concentrated in Lincoln Park during the first
quarter, according to the Lakefront Market Survey, a quarterly analysis
by local real estate brokerage Sudler. Of the 81 single-family houses
sold in those neighborhoods (the Loop, Near North, Lincoln Park, Lakeview
and Uptown) during the first quarter, 44 were in Lincoln Park. “Lincoln
Park is obviously the heart of the lakefront single-family home market,
and demand there remains exceptionally strong,” said Jeanine
McShea, executive vice president of Sudler. In Lincoln Park,
the number of transactions was up 57 percent from the same period
last year. Even more significant to home sellers, the average market
time for a single-family residence declined 23.8 percent, to 61 days
during the first quarter of this year compared to 80 days during the
first quarter of 2001. However, there
were some signs of moderation in the first-quarter marketplace as
the nation began its recovery from the recession, McShea warned. “The average
home price for the quarter actually declined 2.8 percent in Lincoln
Park this year, to $1.03 million from $1.06 million a year ago,”
McShea said. “That is a function of the specific properties available
and demonstrates that buyers, while still eager, are also careful
shoppers.” Sudler also reported
that the largest increase in condominium sales activity was on the
Near North Side, which experienced a 56.4 percent jump in sales volume
and a 55 percent gain in transaction volume. Among the five
lakefront neighborhoods studied, the Near North Side accounted for
roughly half of all sales volume in the condo and co-op category during
the quarter. The Sudler survey
studies all resale transactions reported by the Multiple Listing Service
of Northern Illinois (MLSNI) involving single-family homes, condominiums
and cooperatives in five lakefront Chicago neighborhoods. Led by a continued
upsurge in condominium and cooperative sales, Chicago’s lakefront
housing market enjoyed a buoyant first quarter, according to Sudler.
Total sales volume for residential properties in the market area rose
to $554.4 million, a gain of 27.8 percent over the same quarter in
2001. The average price
of a condo or co-op residence sold during the first quarter rose 3
percent, to $328,603 compared with the year-ago quarter. However,
the average single-family home transaction in the five lakefront neighborhoods
was $831,776, down 2.1 percent from the first quarter of 2001. Overall, single-family
home activity was brisk, with total transactions up 19 percent, to
81 sales and the average market time down 27 percent, to 47 days.
Except for a slight decline in Lakeview, condominium and cooperative
transaction volume was up in every neighborhood covered by the Sudler
Lakefront Market Report. Total transactions
involving condos and co-ops rose 25.7 percent, to 1,482 from 1,179
a year ago. Sales volume for attached housing also rose across the
board, reaching $487 million, a gain of nearly 30 percent over the
$376 million in sales recorded a year earlier. Average market
time for condo and co-op properties essentially held steady, declining
from 45 days last year to 44 days this year. However, that total includes
a significant reduction in average market time in Lakeview (down to
46 days from 68) and a notable increase in Uptown (up to 51 days from
38). The Loop and Lincoln Park saw market times rise slightly for
condos and co-ops, while in the Near North area the average fell by
three days. “From what
we are seeing today, I’d say the spring of 2002 will be a much
more pleasant experience for buyers than was the case last year,”
McShea said. “At the same time, sellers should do quite well
if they price their homes realistically.” |