March 15, 2010 - The Prairie Pointe auction for 13 Chicago condos was held yesterday and quite a bit of information has surfaced about how the event and bidding went. Unlike several other Chicago real estate auctions that have taken place over the past few months, this one wasn’t as big a hit with buyers or investors. That is said because not al...

Attn: Chicago Condo Buyers

Killer Deals ONLY… Drive Today’s
Chicago Real Estate Market!

Up to 37% recent sales are short
sales, foreclosures, bank-owned or
other “distressed properties”… and
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Buyers are doing these three things
before they even look at a property…

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3. Check status of condo building.
Are there “distressed” units? Some
Popular buildings have underwater
Owners, pending foreclosures and
short Sales.

Be Smart… Research Fully…
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Drive a hard bargain for your best deal.

January 11, 2009

Chicago condo sales plunge 35.6 percent, condo developers roll out incentives.

Sales of new and resale Chicago condos continued to suffer during October. Sales citywide fell by 36.5 percent from the same month a year ago. The drop in demand was even more pronounced when compared to two years ago, with sales down 52 percent from the peak of the market in October 2006. Results for the Chicago condo market during the third quarter were similar. Third quarter sales were down 30.1 percent citywide from the same period last year.

According to data from the MLS, a total of 919 new and resale condos were sold in October in the city, down from 1,429 units sold during the same period a year ago. Sales on both the high and low end of the market fell sharply in October. While sales of affordable condos have been down for a while, the recent drop in sales of condos priced at more than $1 million is sending shock waves through the downtown real estate market. A total of 34 condos were sold for more than $1 million in October, down from 42 units sold in the same price range a year ago. On the low end of the market, sales of condos and lofts priced under $250,000 were off by more than 37 percent, with just 303 units sold in that price range. Many buyers are unable to qualify for a mortgage under new rules from banks and lenders.

The drop in demand for the most expensive Chicago lofts and condos helped keep prices flat in October. The average sales price of condos and lofts sold in October rose to $377,570, up less than $1,000 from the same period a year ago. Prices were still well above the average sales price seen in October 2006, which stood at $327,871. We reported a 9 percent drop in prices in neighborhoods south of downtown in August. Prices in the area continue to fall in October, with the average sales price plunging more than 22 percent to just under $150,000. If you're selling your condo in Chicago, you'll need to be ready for a long wait. The average market time for a condominium currently for sale in Chicago rose to 145 days, up from 137 days in August, and more than a month longer than the 113 days it took to find a buyer in October 2007.

Downtown Chicago cools off, developers scramble for answers

The Loop and the Near North Side seemed to be invincible in recent months. However, the end of the year is looking gloomier for the real estate market downtown. A total of just 54 new and resale Chicago condos were sold during the third quarter in the Loop, down from 113 units sold a year ago. A total of 268 condos were sold in October 2006, at the peak of the market. Demand plunged for the most expensive units in the Loop. Just 5 condos were sold for more than $1 million during the month, down from 16 units sold during the same period a year ago. On the low end of the market a total of just 10 condos were sold for less than $250,000 in the Loop during October, down from a peak of 165 condos sold in October 2006.

Many of the most luxurious neighborhoods in Chicago also suffered a significant drop in sales in October. Sales of new and resale condos around the Near North Side, Streeterville, River North, and the Gold Coast were off by 43 percent from a year ago. A total of just 143 condos were sold during the month, down from 260 units sold in October 2007.

Prices fell throughout downtown Chicago in October, helped by the strong drop in demand for the most expensive condos in the area. The average sales price fell by 5.6 percent in the Loop, bringing prices to an average of $595,562. Prices in Streeterville, the Gold Coast, and other areas of the Near North Side were down by just over 3 percent. The average sales price fell to $537,429 in October.

What's in store for the Chicago market?

We reported a drop in the inventory of condos and lofts on the market in the city in September. The inventory continued to pull back in October as many condo owners wait for better market conditions. There are currently 14,374 condos listed on the market in the city of Chicago, a 5 percent drop from the last time we checked in September. However, if we look at the current pace of sales in the city over the past four months, this gives us a market supply of 11.2 months, up from the 10.5-month market supply seen in September. A buyer's market is a market supply of more than 6 months.

Downtown condo developers are seeing a difficult road ahead. High profile downtown condominium developments such as Waterview Tower and the Chicago Spire are facing difficulties from lenders. Even Donald Trump was in the news over his difficulty in negotiating an extension for the outstanding loan on his tower nearing completion in downtown.

Developers are offering incentives and significant price discounts in many developments around the city. Buyers have recently enjoyed weekend sales at One Museum Park and Library Tower. Buyers at Emerson are currently enjoying a $7,500 credit, while CA23 offers new buyers up to $30,000 credit for furnishing their new home. The Marquee is inviting buyers to live for free until 2009. However, it isn't only the developer offering great prices. With high interest rates and an economic slowdown leading many condo owners in pre construction buildings to foreclosure, some of these condos are currently listed at much lower prices than those offered by the developer.

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.