THE MILLENNIAL EFFECT
Millennials represent 38 percent of today’s buyers. Ranging in age from 25 to 43 years old, this segment of consumers is an active force in today’s market, capturing more of the overall market share with each passing year. Many are moving into or fully in prime building years, coupling, marrying and having families. They hold tremendous buying power and are eager to flex it for properties they want in the neighborhoods they desire.
The North Side of Chicago is a huge draw for them, along with the bustling West Loop and Fulton Market and west-side neighborhoods such as Bucktown and Logan Square. Anyone buying and selling properties in these neighborhoods understands how highly competitive they are for buyers.
Several of my current clients are Millennials or have properties that will appeal to them. My approach to working with clients buying in these segments is vastly different than a client seeking a large, upper-market Single Family or in-town. The latter group has far more breathing room. An illustration of this point.
Lincoln Park has a fair number of three-bedroom condos in low-rise buildings and townhomes, priced in the $800,000 to lower $1 million range—products that appeal to Millennials. The Gold Coast offers far more options in high-rises, many of which are older buildings, with steeper monthly assessments—less of a Millennial draw.
LINCOLN PARK
In Lincoln Park, as of last week, there were 44 active listings of three-bedroom condos or townhomes with a median price of $962,475 and a market time of 39 days. There were 52 properties in this segment under contract with a median market time of 16 days [before securing a contract]. Year to date, there have been 88 closed sales at a median price of $800,000 and 12 days on the market. This is a median number, meaning half of these properties received contracts in less than 12 days, many with multiple offers upon hitting the market.
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GOLD COAST
Contrast that with the Gold Coast and adjacent River North neighborhoods where there is a larger offering of 326 three-bedroom condos on the market with a median price of $1,335,000 and market times of 75 days. As of last week, 97 condos were under contract with a median market time of 67 days. There have been 104 closed sales, YTD, at a median price of $850,000 and median market time of 131 days. Inventory levels aside, the difference in market times is stark.
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These numbers are not meant to deflate prospective buyers or minimize the necessity of preparing a home for market for sellers, the data simply illustrate the dynamic market effect of Millennials and the necessity of forging a deliberate plan when you are ready to buy.
I’d love to be of help.
