The Near South Side is the part of Chicago, just south of downtown and the central business district.
The general boundaries include the Loop on the north, the Lake Michigan shoreline on the east, the south branch of the Chicago River on the west and the Douglas/Gap neighborhood on the south.
The entire community is predominantly condominiums & townhouses and includes the neighborhoods of Dearborn Park, the South Loop and Museum Park.
According to data from the Northern Illinois MLS there were 1068 sales in 2007, down from 1528 in 2006. The average sales price was $381,412.00, this was a decline from $395,020.00 in 2006. Marketing times were an average of 128 days on the market, a slight decrease over the 2006 average of 131 days.
As of January 6, 2008 there were 1002 active listings of attached homes. Based on the 2007 level of absorption of 89 sales per month there is 11.25 months of available inventory. A 3-4 months supply of inventory is considered "in balance".
This market is seriously oversupplied and new construction continues everywhere. Sales volume is down -30.10%, sales prices are down -3.45%. The real problem in this neighborhood is all the existing inventory and the competition from new construction.
Developers have not reduced their prices, however, they are offering lots of incentives including below market financing, waived assessments, free parking spaces and upgrades. This type of competition is hard to deal with when all you can offer is a lower price.
All of this points to a cooling market, long marketing times and lower prices in 2008. If you have an active listing or need to sell in 2008 now is the time to get an appraisal. The market has changed and only the most competitively priced homes will be selling soon.
Be sure your listing is competitive, get a current appraisal. Complete appraisals of single family homes and condominiums start at $275.00. this is a small price to pay for knowledge that will help you position your house to sell in the current market.
Citywide Services provides residential appraisal service in the Near South Side. Our appraisers are state certified and have experience with single family homes, townhouses, condominiums as well as small residential income properties. For all your Chicago appraisal needs contact Citywide.