What are the Current Market Conditions for the South Loop?

Market Conditions in the South Loop (Source: commons.wikimedia - used as a royalty free image)

While the South Loop is a large part of the Near South Side MLS neighborhood, residents tend to think of it as its own area with a distinct feel and a unique set of amazing cultural and historical offerings. 

Among those offerings? The South Loop's eastern edge includes the Museum Campus, a sprawling, gorgeous section of Grant Park that includes the Adler Planetarium, the Field Museum, and Shedd Aquarium, along with lots of green space and stunning views of Lake Michigan. Want even more greenery? The South Loop also boasts easy access to Northerly Island, an undeveloped peninsula that is a welcome refuge for city-dwelling nature lovers. 

As for Chicago history, the southern edge of South Loop includes legendary Soldier Field, home of the Bears; the area also includes some of Printer's Row - once the central hub of the Midwest's publishing industry - and the Prairie Avenue "Millionaire's Row," the home to many of Chicago's 19th century elites. 

Ready to give the area a look for yourself? Here are the current market statistics for South Loop:

South Loop's Current Condo Market

1. The Median Sale Price of a South Loop Condo Is Rising Again

South Loop Condo Median Sales Price

After rising steadily through 2013 and 2014, the average sale price of a South Loop condo dropped sharply in 2015, from highs near $380k down to $360k. Prices leveled off and remained steady for most of 2017, before rising sharply in recent months, reaching highs above $370k for the first time in well over a year. 

2. Condo Prices are Expected to Grow Gradually Based Upon Months Supply of Inventory

South Loop Condo Inventory

The months supply of inventory counts the number of months it would take to sell all of the condos currently on the market if no other new homes were added. It is a theoretical predictor of the housing market's growth and stability. 

Typically, three months of inventory or fewer indicates a seller's market, and we expect prices to rise in this situation.  

A balanced months supply of inventory is about four to six months, meaning that the situation is well balanced for both buyer and seller.

A buyer's market is typically a market that reaches more than six months. Because the number of homes on the market is disproportionate, prices would be expected to drop. 

Currently, inventory in South Loop sits below three months, making it a seller's market. We believe that this will result in steady, consistent, or slow growth in sale prices for condos. 

3. The Average Condo Spends Roughly 60 Days on the Market 

South Loop Condo Days on Market

The average condo on the South Loop Market saw its shortest wait time in early 2014 and witnessed a small increase in 2015, then a significantly larger spike in 2016. Since that high, around 80 days, wait times have shortened once again, and now sit between 60 and 65 days on average. 

South Loop's Current Single Family Home Market

We don't have much reliable data on South Loop's single family home market that's worth reporting, because there are so few single family homes in the South Loop area. As you can see in the graph below, only three single family homes have gone to closing thus far in 2017; similarly, only two closed though the entire year of 2016. With this little information and this small of a market, there is just too little data to report. 

There are too few single family homes in the South Loop to demonstrate data trends:

South Loop Single Family Home Monthly Closings

Ready To Purchase a South Loop Home? 

When you're ready to live in "Chicago's Front Yard," the Real Group team would love to help you find a new home in the South Loop area! To begin the process and explore the community even more, feel free to drop us a line!

Are you thinking about selling your home?

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