Sue Fox, @Properties. Direct 773.816.1788

Subscribe to Site

Categories

ARCHIVES

Real Estate radio

Downtown Chicago condo sales plummet

filed under: Buyers, Chicago home sales, Developments, Downtown, Market conditions posted on August 18th, 2010

SLUGGISH SALES: With only a few hundred new condos sold each year in downtown Chicago, prices have declined as well, giving buyers an attractive opportunity to buy a luxury unit in the heart of

SLUGGISH SALES: With new condo sales down 52% in downtown Chicago, prices have declined as well, giving buyers a chance to buy an affordable luxury unit in the heart of the city. This new 2-bedroom condo at 505 N McClurg sold for $473,500, about 15% less than its asking price.

It looks like the wind has once again been knocked out of the sails for Chicago’s downtown condo market. Sales of new construction condos plunged 52% in the second quarter of 2010 compared to the same period last year, according to a new report from Appraisal Research, a real estate research firm based in Chicago.

Even compared to the first quarter of 2010 — when the federal government’s tax credits for home buyers were still in force — the numbers look pretty weak. There were 256 downtown Chicago condo sales in Q1, but only 150 sales — a 41% drop — in Q2 this year.

“With the tax credit expired, continued concerns about the economy and job market, worries about the stability of housing prices, and the difficulty in selling an existing residence and securing financing, many buyers continue to remain on the sidelines for the near term,” said the report.

It’s been a rather rude awakening for downtown developers, who once feasted on thousands of sales of glittering high-rise condos each year. In 2005, for example, developers sold more than 8,000 units in downtown Chicago. Last year they only sold 572. But the collapse means it’s a very attractive time to buy a new condo downtown, many of them with sweeping lake or city views, sleek gyms and swimming pools.

For the past few weeks, I’ve been taking out a pair of buyers to see many of the new 2-bedroom, 2-bath condos with lake views in Streeterville, and we’ve been pleasantly surprised by the prices. At 505 N McClurg, a snazzy building built in 2008 with floor-to-ceiling windows and beautiful finishes, a 2-bedroom, 2-bath unit that was priced at $554,500 last summer recently sold for $473,500. And with sales slumping, I expect to see even greater discounts ahead this fall.

Written by Sue Fox //

Leave a Reply