What if you could tell, in one quick number, whether South Loop condo sellers or buyers have the upper hand right now? If you follow months of supply, you can. You want a clear, local read you can actually use to set price, write offers, and negotiate with confidence. In this guide, you’ll learn exactly how to calculate months of supply for 60605, how to interpret it across price points, and how to turn it into real-world strategy. Let’s dive in.
Months of supply explained
Months of supply (MoS) tells you how long it would take to sell the current active inventory at the recent pace of sales. The simple formula is: MoS = Active listings ÷ Average monthly closed sales. If you use a multi-month window, divide total closings by the number of months to get the average monthly pace.
Absorption rate is the flip side of the same coin. It is the percentage of active inventory that sells in a month, or 1 ÷ MoS. For example, a 25 percent absorption rate equals about 4 months of supply.
Industry convention treats about 6 months of supply as a balanced market. Less than 6 months starts to favor sellers, and less than 3 months often signals a strong seller’s market. More than 6 months tends to favor buyers. These are general benchmarks, so always apply them to local condo dynamics.
Why 60605 behaves differently
The South Loop is condo-heavy, with many mid- and high-rise buildings. Condo markets move differently than single-family neighborhoods because HOA rules, investor activity, and rental options can all influence supply and demand.
New construction deliveries can temporarily spike closed sales or flood the market with new listings. That can distort a one-month view, which is why smoothing is important.
Price bands matter. Entry-level studios and 1-bedroom units often trade faster than larger or luxury residences. You will get a clearer picture by looking at months of supply by price tier and unit type instead of relying only on an all-in ZIP number.
Seasonality also plays a role. Spring usually runs hotter and winter cooler, so a single month can mislead. Demand drivers like proximity to downtown, transit, and nearby universities help support a steady baseline, but mortgage rate swings can quickly change buyer activity.
How to calculate MoS for South Loop
Start with local MLS data for 60605 condos to capture active listings and closed sales. In Chicago, MRED and the Chicago Association of REALTORS provide the most precise counts. Public aggregators can be useful, but methods vary.
To reduce noise, use rolling windows:
- 3-month rolling MoS for near-term read: MoS = Active listings today ÷ (Closed sales last 3 months ÷ 3).
- 12-month rolling MoS for a big-picture trend and seasonality check.
Segment your analysis for clarity:
- By price band, such as under $300k, $300k–$600k, and $600k+.
- By unit type: studio, 1BR, 2BR+, and penthouse.
- By building class if possible, such as older elevator buildings versus newer towers.
Be transparent about what you include. If you exclude under-contract or contingent listings, note that. If you exclude new construction closings to focus on resale dynamics, say so.
How to read MoS in negotiations
High MoS, typically more than 6 months, points to a buyer-leaning market. Sellers may need sharper pricing and more patience, and buyers often gain negotiating leverage.
Moderate MoS, around 3 to 6 months, signals a balanced to mildly seller-leaning market. Well-presented condos can command strong offers, but there is still room to negotiate on less compelling listings.
Low MoS, under 3 months, indicates tight supply. Sellers can be more selective on terms and timing. Buyers may need cleaner offers and faster decision-making to win.
Hypothetical 60605 scenarios
These are hypothetical examples to show how months of supply translates into strategy.
Example 1, buyer’s market: Active 60605 condo listings today: 120. Closed condo sales in the last 30 days: 15. MoS = 120 ÷ 15 = 8 months. In this environment, buyers can often start 5 to 10 percent below list price depending on condition, request seller credits, and keep full inspection timelines. Sellers should price to the current market, stage to stand out, and consider incentives.
Example 2, seller’s market: Active listings: 40. Closed sales last 30 days: 20. MoS = 40 ÷ 20 = 2 months. Sellers can set a competitive list price, set a brief offer window, and limit contingency periods. Buyers should have a strong pre-approval, shorten contingency windows where prudent, and consider an escalation clause if comfortable with the risks.
Turn MoS into a concrete plan
- Pricing: Pair MoS with median days on market and the sale-to-list price ratio in your price band to set a realistic list price or offer strategy.
- Contingencies: With higher MoS, buyers can often ask for fuller protections. With lower MoS, buyers may shorten timelines to be competitive. Balance speed with risk.
- Concessions and credits: In high-MoS conditions, sellers are more likely to contribute to closing costs or fees. In low-MoS conditions, buyers should expect fewer credits and stricter terms.
- Inspection focus: When supply is tight, buyers may prioritize major systems and health-and-safety items. When supply is abundant, buyers can push for full-term inspection rights and repairs.
- Appraisal planning: As MoS rises and the market cools, appraisal gaps can emerge. Buyers may want appraisal contingencies or gap strategies aligned with their comfort level.
Limitations and pitfalls to avoid
Short timeframes can mislead. A single month might be skewed by a major building delivery or a batch of closings. Use rolling 3-month and 12-month reads to smooth swings.
New construction and bulk sales can distort both supply and closings. Consider a resale-only lens when you want to understand day-to-day condo dynamics.
Understand your MLS statuses. “Active” can sometimes include withdrawn or mis-coded listings. Verify counts and definitions.
Aggregate MoS can hide very different conditions by price band. Luxury tiers may sit longer while entry-level units move quickly. HOA budgets, special assessments, and building rules also affect what buyers consider “real” supply.
Finally, keep seasonality and mortgage rates in view. Compare year over year and track broader rate moves when interpreting short-term changes.
What to track with MoS
To get a reliable read, pair MoS with a handful of companion metrics:
- MoS by price band and unit type.
- Rolling 3-month and 12-month MoS trend lines.
- Median days on market by price band.
- Median sale-to-list price ratio.
- Pending ratio, or pending-to-active, as a quick momentum check.
- New listings versus closed sales each month to see inventory flow.
How often should you check MoS
Check monthly if you are monitoring the market or getting ready to buy or sell. Use a 3-month rolling average for near-term decision-making and a 12-month view to keep seasonality in perspective.
If you are zeroing in on a specific building or tier, update weekly during an active search or listing period. Building-level supply and HOA factors can outweigh a ZIP-level average.
Next steps for buyers and sellers
If you are listing in the South Loop, your price, timing, and concession strategy should be grounded in your building’s current MoS and your price band. If you are buying, your offer terms should reflect how tight supply is for the specific unit type you want.
You can get a building- and price-specific MoS report with companion metrics to guide your next move. For white-glove strategy and hyperlocal insights across 60605 and nearby South Side neighborhoods, connect with Vergis Eiland. Request Your Free Home Valuation.
FAQs
What is months of supply for South Loop condos?
- Months of supply is active condo listings divided by the average monthly closed sales, showing how long it would take to sell current inventory at the recent pace.
How does months of supply impact 60605 pricing?
- Lower MoS supports firmer pricing and faster sales, while higher MoS often requires sharper pricing, stronger marketing, and patience for sellers.
Should buyers change terms based on South Loop MoS?
- Yes. In low MoS, consider shorter contingency timelines and strong pre-approvals. In high MoS, ask for credits and keep fuller protections.
Do new construction deliveries affect 60605 months of supply?
- They can. New tower deliveries can spike closings or inventory and distort single-month views, so use 3- and 12-month rolling reads.
How often should I review MoS when buying or selling in 60605?
- Review monthly, lean on 3-month rolling averages for near-term choices, and use a 12-month view to account for seasonality and trend.
