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Lincoln Square on a Tear as Average House Price Tops $600,000

filed under: Buyers, Chicago home prices, Lincoln Square, Market conditions, Sellers posted on January 5th, 2015

FINISHED PRODUCT: This new FINISHED PRODUCT: This new 5-bedroom house in the Bowmanville area of Lincoln Square recently sold for almost $900,000. The previous home, shown below, was torn down.

It’s getting harder to find an affordable house in Lincoln Square, a lovely, low-key neighborhood just north of North Center and west of Andersonville. In the last year, single-family home prices in Lincoln Square have climbed 8.2%, pushing the average house price here to $630,000. The gain comes on top of a huge run-up in prices in 2013, making the once-sleepy Lincoln Square one of the hottest areas in the city.

What’s driving the boom? The neighborhood has long appealed to Northsiders looking for a less expensive, quieter alternative to Lincoln Park and Lakeview. With plenty of good restaurants to be found along Lincoln Avenue, tree-lined streets filled with quaint A-frame houses, acres of green space and ball fields at Winnemac Park — not to mention easy access to the Brown line, Lincoln Square became a natural destination for buyers priced out of neighborhoods closer to the city core.

But as Chicago’s housing market recovered, this area exploded in popularity – and its home prices quickly followed suit. Two years ago, the average price was $475,000 for a house here, according to MLS data. The average condo price was $199,000. Now both of those figures are up about 32% — and the demand has led to bidding wars for even the lowliest foreclosures. Local schools have improved, too. In recent years, Chappell Elementary School went from the middle of the pack to earning a 9 out of 10 rating from Great Schools, a nonprofit that provides school information nationwide.

Cash buyers are snapping up rundown Lincoln Square homes, particularly in the Bowmanville area north of Foster Avenue, where even a mold-ridden house lacking a working kitchen will likely attract multiple offers. Six months later, you may see the same address — now featuring a brand-new house or a gut-rehab renovation — back on the market for upwards of $700,000 or even $800,000.

RAW MATERIAL:

RAW MATERIAL: The original house, which stood for more than 100 years, was purchased by a developer for $250,000 cash in early 2013 and demolished.

Consider, for example, the fate of 2200 W Farragut Avenue, a dilapidated, century-old house that sold in early 2013 for $250,000. The listing described it as “very dark and dangerous” and warned that the buyer “must be ready for a project.” Indeed, the cash buyer tore down the house and promptly replaced it with a five-bedroom house complete with three and a half baths, a finished basement, and a roof deck over the garage. It sold in less than two weeks, for $889,000.

So if you’re looking to buy in Lincoln Square, or any city neighborhood, contact me. I have the resources to get you the down-low on the best deals (and steals) in Chicago.

(Note to readers: This blog post originally appeared on Dec. 29 the @properties blog, where I am one of the regular agent bloggers.)

Written by Sue Fox //

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