May 2008
Chicago Condo Market Update
Pre-Construction, New & Resale
Sales Down 31% In April…Prices Skyrocket 21%
It's a confusing market for new and re-sale condominiums in Chicago these days. Prices skyrocketed despite a sharp drop in sales, leading to an increase in the market supply of units in the city. This is most probably because the ratio of higher priced sales vs lower priced was heavily skewed to the higher end. We’ll explore this in detail over the next several weeks…
Average Prices for new and re-sale condominiums rose in April. The average sales price for units sold citywide during the month rose to $399,376, an increase of nearly 21 percent from April 2007, when the average sales price stood at $330,324.
Sales of new and re-sale condominiums and Chicago lofts plunged more than 31 percent in April. A total of 1,426 units were sold in the city during the month, compared to 2,070 units sold in April 2007. The best showing for April was seen in 2005, when 2,278 units were sold across the city during the month.
At the current pace of sales, Chicago has a market supply of new and re-sale condominiums of 9.54 months. A market supply of over 6 months is considered a buyer's market in the city. However, some neighborhoods are seeing a significantly higher market supply than the citywide average, while others enjoy a strong market.
The Near South Side, for example, has a market supply of 11.9 months for two-bedroom units, while the market supply of condos with three or more bedrooms is at 21.6 months. One-bedroom condominiums in the Loop are one of the hottest commodities in the city. The current market supply for these units is just 5.19 months.
A total of 15,320 condominiums and lofts are currently listed on the market in the city of Chicago, according to MLS data collected on May 5, including both new and re-sale units.
Condos to Rental Units
In the past few weeks there have been several announcements of condominium projects that are being converted into rental units. Rumors surround the fate of Burnham Pointe, a development led by Terrapin Properties. According to a story that appeared in Crain's on April 23, the developer is actively seeking a buyer for the tower, which will be completed in October. Centrum Properties confirmed that the Lofts at Lakeview will be converted into rental units, after selling just 30 percent of the units.
Some developers are packing up and canceling projects outright. Parc Huron, a project by Lennar Homes, could be a thing of the past. The developer hasn't confirmed whether the project will continue, amidst disappointing sales. Canyon Ranch, a widely anticipated luxury condominium development planned for the Near North Side, rolled up the welcome mat and returned deposits to buyers on March 29. Just over 10 percent of the units had been sold. The Waterview Tower narrowly avoided closing its doors for good after receiving a construction loan from a China-based bank.
Pre Construction Buzz
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. No official sales data has been released by the developer. However, in one recent event held in Singapore, an estimated 30 units were sold.
Trump Tower on 401 N Wabash. There are 486 condo residences and 339 hotel rooms.
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 268 units this year.
MoMo, located on 9 W Washington has 208 residences up for delivery.
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.
Elysian Condo Hotelis another high-end condo hotel located on 11 E Walton. It will deliver on 188 hotel condos and 51 condo units.
1454 S Michigan Avenue is home to The Marquee, which contains 223 units.
For all the automotive buffs, Motor Row Lofts will have 52 loft residences on 2301-2315 S Michigan Avenue that will ready for occupancy this year.
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.
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.
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 this year and 187 condos will be ready at this 1841 S Calumet Avenue spot.
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.
