Roscoe Village and Lincoln Square Condo Prices Rise Even in a Depressed Market - Ryan Parks Chicago Real Estate

From July 2007 to July 2009, the median price for Sold, attached single-family homes (specifically condos and townhomes) in Roscoe Village and Lincoln Square rose a whopping 12% ($349,500 to $389,900)! Now, does this mean that home values have experienced an on average double-digit increase over the last two years? Absolutely not! These numbers most likely suggest that the new construction boom over the past few years produced an influx of condos to neighborhoods that were once heavily dominated by single-family and multi-unit homes. So, as the number of new construction attached single-family homes increased, higher median prices accompanied them.

If these numbers do not indicate that home values have increased over the past two years in these specific neighborhoods, then what relevance do the numbers actually serve??? Well, if median prices for attached single-family homes have continued to rise on average over the past two years in Roscoe Village and Lincoln Square, this could be a strong indication that demand for these areas has yet to fully mature in perceived market value. Meaning, these areas could experience a faster “market recovery” as compared to other established Chicago Neighborhoods.

Lakeview, for example, has experienced a 6.2% median price decline over the same time period. Does this mean that Lakeview has become a less desirable area? Probably not…However, it may suggest that Lakeview hit its “peak” in terms of price and demand during the latest “Real Estate Boom” and may now be experiencing an over-saturation of attached single-family homes…which could explain the decrease in median home price over the past two years.

What does all this mean for the next few years to come? I believe it is a strong indicator that Roscoe Village and Lincoln Square have their best days ahead of them and the supply never fully met the demand even during the recent housing “boom.”