The South Loop has long been known for its high inventory levels in the condo market. Developers built fast and in some instances built crap. However, I’ve recently represented several clients in the South Loop and I’m happy to say that inventory levels are extremely low at least in quality, well established buildings! Which buildings have seen drops in inventory in the South Loop? The answers might surprise you!
1400 S. Michigan: This is a building that had to auction off a handful of their units and saw a handful of short sales as well. However, there are only 4 units for sale in the building, one of which is under contract.
1250 S. Michigan: While this building has a handful on the market, most are under contract. There are only two available units in this building.
1305 S. Michigan: One of my clients loved this building due to its location and open space, but units kept going under contract! Right now there is nothing available, two units are currently under contract. In the past few months all units that came on the market in this building went under contract with in 30days.
1464 S. Michigan: This building had high inventory levels as little as 6 months ago! Currently there are 8 units for sale but 5 are under contract which means there are only 3 available units in the building!
1250 S. Indiana: This is a no frills building but one that has always been thought of as affordable. Currently there are only 3 units on the market, one which just came on this past week.
125 E. 13th Street: Three units on the market but TWO under contract which means only 1 is available!
Museum Park: Inventory levels in the newer buildings are relatively high but have come down in recent months. The older buildings in Museum Park have a few units available mostly at the higher price points (500k +).
100 E. 14th Street: 7 on the market but 5 Under contract! Only two are available.
Why is inventory low in the South Loop?
Don’t get me wrong, inventory is still higher than normal in the South Loop when we look at the entire area. However, for the quality buildings that don’t have extremely high rental percentages or buildings that don’t have financial issues, inventory is low. Location also factors into the mix. Buyers in the South Loop typically want to be walking distance to the Roosevelt train lines as well as walking distance to the restaurants that surround 13th and 14th street on Michigan Ave and Wabash Ave. This is one reason why I focused on inventory levels in the buildings I mentioned because they are walking distance to all these things.
Paul Blackburn is a licensed Illinois Realtor and Associate Broker with @ Properties in Chicago. He can be reached anytime via e-mail at Paul@PKBlackburn.com You can also visit Paul’s website dedicated to condo buyers in Chicago’s market place.