Local Deals: 120 * 90

Wicker Park, Bucktown Area Real Estate Sales Jump 30% in 2013

October 24, 2013- Wicker Park Chicago

Just Sold: 1019 N. Wolcott- $2,075,000 Photo Courtesy of Baird & Warner

You hear a lot of hype about the Chicago Real Estate Market now. Houses are selling in a matter of minutes right? Well, not exactly. But yes, area real estate has been selling quickly especially in hot neighborhoods like Wicker Park, Bucktown, Ukrainian Village and East Village.

So what has made 2013 different from 2012?

A couple of things. First, the economy has definitely strengthened a little over time. People have become re-employed and consumer confidence has been on the increase this year. Interest rates have also stayed low. But the real story here is inventory. And by inventory we mean: the number of properties for sale. Inventory has remained relatively constant but the number of buyers hitting the market has increased significantly causing the shorter market time and rising values.

In order to see the whole story it’s best to compare the numbers from 2012 to 2013. According to information obtained via the Midwest Real Estate Data system for the West Town area from Chicago to Fullerton, Ashland to Western Avenue, here are a number of interesting statistics for the first 3 quarters of 2012 and 2013:

Single Family Home Sales January 1 – September 30

The  # of Single Family Homes sold in 2012 – 120 with an average sale price of $736,000.

The  # of Single Family Homes sold in 2013 -  157 with an average sale price of $877,000.

The number of single family homes sold* in the neighborhood increased 31% from 2012 to 2013 and the price tag for those homes increased 19%.

Condominium Sales including Townhomes/Duplexes January 1- September 30

Now looking at condominiums, townhomes and duplexes, you’ll see a similar story.

The # of Condominiums sold in 2012 – 502 with an average sale price of $380,000

The # of Condominiums sold in 2013 -  676 with an average sale price of $407,000

The number of condos sold* in the neighborhood increased 35% from 2012 to 2013 and the price tag for those homes increased 7%. Clearly condominium values have been a little slower to recover.

The bottomline, however, is the current real estate market news in Wicker Park, Bucktown and the surrounding areas is positive for both buyers and sellers. For buyers: more properties are coming on to the market now as values increase but interest rates are still relatively low. So you won't have to run and see every single property in which you're interested the second it hits the MLS. 

For sellers: buyers are out in force looking for properties and your property's value is increasing. If you wait a year or two to sell, higher interest rates could keep your value in check. The key to selling in today’s market is to not overprice your property. Buyers probably won’t bite and bank appraisers will push your home’s value back down even if a buyer does submit an offer on an overpriced property.

Although you may see the traditional slow down over the next several months due to seasonality issues, the real estate market for both buyers and sellers is strong in Wicker Park and Bucktown. The key for both is to take action now before a significant increase in mortgage (interest) rates occurs; and that, could be right around the corner.

*Sold is defined in this article as "Closed". 

Published by real estate contributor and licensed IL real estate broker Thyra DeCicco, @properties, 1875 N. Damen Avenue. Bucktown. Ph: 773-432-0200. 

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