Three weeks ago, a one-bedroom at 1000 W Washington listed at $365K. It sat for nine days before getting an offer. Six months ago, that same unit would have had two or three offers within a weekend.
Something is shifting in the West Loop, and if you're a first-time buyer, you should be paying attention.
I pulled MLS data last month and the average days on market for condos in the West Loop ticked up to around 38 days. That's up from roughly 24 in the fall. It's not a crash. It's not a fire sale. But it's breathing room, and breathing room is exactly what first-time buyers haven't had in this neighborhood for a while.
Here's what I think is happening. Interest rates have been hovering in the high 6s, and that's cooled some of the competition. Fewer bidding wars. Fewer all-cash investors swooping in on entry-level units. The sellers who priced aggressively are still getting offers, but the ones who listed aspirationally (you know the type) are sitting. And sitting listings mean negotiation power for you.
A few things I'd do if I were buying right now:
- Look at listings that have been on the market 20+ days. Those sellers are more flexible than they were on day one. - Don't sleep on buildings along Randolph west of Halsted. Some of those mid-rise condos from the early 2010s are well-maintained and priced below the flashier new construction closer to the expressway. - Get your pre-approval locked before you tour. Sellers in a slower market still want certainty, and a clean pre-approval letter separates you from the browsers.
I'll be honest. I don't think this window stays open forever. Spring inventory in Chicago tends to attract more buyers as the weather warms up, and rates could shift in either direction depending on what the Fed does this summer. The correction we're seeing right now is mild. It favors patient, prepared buyers.
One thing I disagree with that I keep hearing from other agents: the idea that first-time buyers should "wait for rates to drop." Rates might drop. They also might not. Meanwhile, you're paying rent every month. If the monthly payment works for your budget today, the math already makes sense.
So what are you waiting for, exactly?