South Loop Condos Under 250k hard to find

The South Loop in Chicago was once filled with excess inventory. In 2011 there was roughly a three year supply of inventory. In 2012 there was over an 18 month supply of inventory. Now, there is only a few month supply of inventory, especially under 250k.

Why am I specifically talking about $250,000? If you are familiar with the South Loop market you will know that many new construction buildings had built small 1 Bedroom units. 1720 S. Michigan and 1620 S. Michigan are the most popular and had the most foreclosures. Some small 1 Bedroom units sold for only $105,000 to $115,000 just over a year ago. Those same units are now selling for $150,000. It is amazing how things have changed in the past year. 1529 S. State also had a handful of units on the market in the past but even that building is rebounding nicely.

Rent prices have also remained high in the South Loop with most 1 Bedrooms renting above $1,500 without parking. This has spurred many renters to become homeowners but also has created a great demand for investors especially as most South Loop buildings do not have any rental restrictions.

What buildings are the hottest in the South Loop?

1201 S. Prairie – Recently taken over by Related Midwest, 1201 S. Prairie, part of the Museum Park development is doing extremely well and is definitely the “most modern” of any South Loop development. 1305 S. Michigan continues to be red hot. While some short sales are transacting at low prices, these units do have very poor views. They are selling fast and above list price. Most units, however, are selling at “market rate” with most 2 Bedrooms selling in the low $300s.

1400 S. Michigan and 1250 S. Michigan continue to see very low inventory. Only two 1 Bedroom units are currently on the market in 1400 S. Michigan. You may remember several years ago an auction was held for the remaining units in this building. 1250 S. Michigan currently only has 1 unit available (several others are under contract). The unit currently available for sale is a 3 Bedroom condo priced at $750,000.

Museum Park: All Museum Park buildings continue to be in demand. Specifically One Bedrooms which once flooded the market are now hard to come by.

 

Paul Blackburn is an Illinois licensed Realtor and Broker with @ Properties in Chicago. He can always be reached via e-mail at Paul@PKBlackburn.com

Condos for Sale in the South Loop Chicago – Inventory Levels Drop!

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. 

www.BuyingInChicago.com