October 6, 2008 - Construction has already made it up to the 32nd floor for Ohio Street’s 40 story Silver Tower since ground broke just over a year ago on June 15th. With the glass going in on lower levels you can begin to see how the tower will look when finished. According to the building website, buyers will be able to begin picking out th...

September 15, 2008

Chicago condo sales plummet 36 percent, prices inch up 4 percent in August

The market for resale and new construction Chicago Condos continued to be plagued by slowing demand during August. According to sales data from the MLS, sales of new and re-sale condos in the city were off by 36 percent from the same month last year. Sales were down by more than 43 percent from the same period in 2006. In comparison, during the first six months of the year, citywide condo sales were off by 26 percent from the same period a year ago.

A total of 1,445 condos and Chicago lofts were sold in August around the city, down from 2,262 condos sold during the same period a year ago. We reported in our last update on the strong sales of units priced at more than $1 million around the city. However, market data for the month shows that demand for even the most expensive units may have finally peaked. A total of 40 condos were sold for more than $1 million in August, down from 42 units sold a year ago. The decline in demand was even more notable for the most affordable condos on the market. A total of 450 condos were sold for less than $250,000 in August, down from 686 units sold in that price range a year ago.

The average sales price continued to rise despite the dramatic decline in sales during August. The average sales price for units sold in August rose to $383,412, up just over 4 percent from $366,739 a year ago. However, some areas of the city are seeing a sharp drop in prices. Prices in neighborhoods south of downtown were off by 9 percent during the month, falling below $200,000. Condo owners and developers across the city are also waiting even longer to find a buyer. The average market time for units sold in August rose to 137 days, up from 111 days a year ago.

Downtown Chicago cools off

The Loop has seen strong sales throughout most of the year. However, August was the first month that the neighborhood experienced a significant drop in sales of condos. A total of just 53 condos were sold in the Loop in August, down more than 67 percent from the same period last year. August 2007 was one of the best months for the condo market in the Loop, with 161 units sold.

The average sales price continued to rise despite the significant decline in demand around the Loop. The average sales price passed the $600,000 milestone in August, up more than 29 percent from a year ago. While just 1 in 50 condos were sold for more than $1 million in August 2007 in the Loop, that number skyrocketed to 1 in 7 this year, leading to the rise in the average sales price.

Near North Side neighborhoods such as Streeterville, the Gold Coast and River North also saw a significant drop in sales during the month. A total of just 201 condos were sold around the Near North Side in August, down 41 percent from the same month last year. Prices here also continued to rise as buyers focus on the most expensive units on the market. The average sales price soared 15 percent in August around the Near North Side.

What's in store for the Chicago market?

There is some good news for the Chicago condo market. The number of new and resale units listed on the market has actually come down in recent days. There are currently 15,181 active listings in the city, down 3 percent from the 15,669 active listings on the market the last time we checked in July. The market supply is also falling, currently at 10.5 months. The market supply stood at 11.64 months in July.

However, according to an article published in the Trib on July 13, as many as 13,000 new construction condominiums are in the process of being brought to the market in Chicago over the next couple of years. This could continue to put some strain on the market, particularly as we see slowing sales in the Loop and the Near North Side.

If you're in the market for new construction Chicago condos, there are plenty of luxury developments to choose from around the city, many offering great incentives for new buyers. Here's a few...

The Chicago Spire continues to be the star of the show on the Chicago real estate market. The sales team is currently traveling the world, holding exhibitions throughout Asia as well as in South Africa. According to the developer, sales are now well over the 30 percent mark reported in June, with foreign buyers responding well to the project.

Trump Tower on 401 N Wabash. There are 486 condo residences and 339 hotel rooms. Construction of this high-rise tower has topped out, and first deliveries of these luxury condominium residences will begin shortly.

Emerald, that eco-friendly development on 123 S Green, will add 212 condos to the mix this year.

Michigan Avenue Tower II, which is on 1250 S Michigan Avenue, will weigh in with 269 units this year. Prices start at $300,000.

MoMo, located on 9 W Washington has 208 residences with immediate delivery available.

Sister development SoNo on 1454 N. Dayton will be closing contracts on its 200 units this year as well.

Odyssey Lofts will contribute 62 loft residents from its 775 W Jackson address.

1555 Wabash is of course located at 1555 S Wabash and will have 186 condos ready for occupancy this year.

Another large group will be added when Astoria Tower Residences & Spa, located on 8 E 9th Street, begins delivering 240 units later this year.

Burnham Pointe on 710 S Clark is close to completion and has 298 units.

Library Tower is another development that has been in the news lately. The 511 S Plymouth Court building has 184 condos almost ready for occupancy.

1454 S Michigan Avenue is home to The Marquee, which contains 223 units.

For all the automotive buffs, the first deliveries have begun at Motor Row Lofts, which offers 52 loft residences on 2301-2315 S Michigan Avenue.

Cityscape Condominiums, constructed on 3905-3935 N Western Avenue has 86 residences that will be ready for delivery in '08.

757 Orleans, located at the namesake address of 757 N Orleans, will have 198 luxury condos completed this year.

Silver Tower won an award for favorite condo conversion project for its 233 unit project on 303 W Ohio. Deliveries of these units are set for early next year.

Superior 110 will contribute 62 condos from its 110 W Superior Street address.

474 N Lake Shore Drive, located at the same address, has an impressive 502 units that come on line this year.

550 N St Clair was completed recently and began deliveries on the 112 units at its 201 E Ohio address.

The 154 luxury condos at 600 N Lake Shore Drive are also part of the new 2008 inventory. Deliveries of these units have already begun.

The Museum Park towers include 1400 Museum Park on 100 E 14th Street. This development will have 260 units ready this year.

1600 Museum Park is situated on 1621 S Prairie Avenue and has 268 condos to deliver.

Museum Park Place is set to be completed in 2009, and will add 288 luxury units to the mix at Central Station.

And the final Museum Park tower set to deliver this year is One Museum Park. Tower I of this complex will be ready for occupancy early on, but Tower II won't be completed until next year. Together they will contain 289 units.