As a Realtor, I definitely think it's a great time to buy. As a home owner and "regular person" just like you, I think it's a fantastic time to buy, and a not so great time to sell! Seller's have started to figure out that if they want to keep their asking prices at levels of 2-4 years ago, they can continue to sit and sit and sit on their house. It's just not going to sell at those prices. So, this is great for you because FINALLY they are starting to "Get real" with pricing.
It really shouldn't matter to you if there are too many properties for sale because unless you are buying in a brand new building and plan on flipping it (bad idea), then you don't have to worry about competition in selling your home right now.
Lakeview and Lincoln Park are the most established, well known, desired areas of Chicago to live in. It's never a bad idea to buy in these neighborhoods.
Having lived in Lakeview for 7 years and sold a number of properties in the area, I suggest you shoot me an email so I can help you find a home.
Sierra Bloom - 773-520-2615 - email@example.com