CHICAGO DOWNTOWN CONDO INVENTORY GROWS, While Sales Continue to Fall!
NEW CONDO UNITS DOWNTOWN ARE DOUBLE 2005 FIGURES!
In 2007, 3,783 condos were sold in the Loop, South Loop and West Loop Neighborhoods of Downtown Chicago - down 24.6% from 2006 figures, and nearly 54% from 2005 high sales. Only the West Loop showed a unit sales increase last year.
At the same time, however, condo construction downtown proceeds at a feverish pace. A projected 6,000 new units will be completed and ready for delivery this year - double the number completed three years ago, when sales peaked for condos in Downtown Chicago. "New projects are out pacing sales and the gap is continuing," said Gail Lissner, vice president of Appraisal Research Counselors. "We'll see more auctions as an exit strategy."
Adding to downward pressure on condo sales, and more headaches for condo developers, is a drop in new jobs downtown. Job Growth in Downtown Chicago is expected to slow to 32,000 new positions in 2008, down from 43,000 last year, according to Ron DeVries, also with Appraisal Research.
Our Team would expect condo buyers downtown will be able to negotiate strong incentives this year - such as included parking spaces, assessment credits, finish upgrades, and lower actual sales prices - unheard of for condo buyers only a couple of years ago. The reason for the possible bargains to be had - simple supply and demand! Developers committed to many ongoing projects when the market was stronger, and now must move unsold units, even if deep discounting is required, to avoid hefty carrying charges.
Feel free to contact our Team for specific condo projects downtown which might offer the most value for your dollar.
Also, please review Susan Diesenhouse's article in yesterday's Chicago Tribune for more detail.
DEAN MOSS & DEAN'S TEAM CHICAGO
