With the condominium market in Chicago plateauing somewhat due to market saturation, Condo owners who have befallen hard times trying to get renters or buyers have a new option: CRS.

“At this point in the market, what we really are is more of a safety valve or a way for people to weather the current situation,” Michael Zink, one of CRS’ developers, says. “We can mitigate loss in this period of recovery.” Recovery?
The idea behind CRS is to provide some sort of insurance for condominium owners in Chicago: the owner of the unit pays 10% of the value of the monthly lease transaction in exchange for a guaranteed rent check every month - even if the unit is unoccupied. CRS also provides services that find tentants for the condo or collect rent. The success of CRS is allowing them to expand their business currently. As they grow, more options for condo owners will most likely be available. It’s an interesting idea.

Technorati Tags: Chicago Condominiums, Condo Lease, CRS

This spring, construction started on Vetro, a 31-story luxury hi-rise located in the South Loop at 601 South Wells. Here’s some of the details:

• Floor to ceiling windows (Vetro is Italian for “glass”)
• Translucent interior walls (I’ve seen this before - very cool, very modern)
• 500 - 2,000 square feet
• One indoor parking space per unit
• Fitness center
• Outdoor sun-deck
• Community/Media rooms that seat 25 people
• Commercial space in the building is slated for a couple of classy restaurants
• Price: Mid-$100’s to $800,000

You can check the construction camera Here.

The South Loop is undergoing a great economic and population expansion. To learn more about the South Loop, check out Best Chicago Neighborhoods.

There’s a problem in the Chicago condominium market for sellers - I’ll let these snippets do the talking:

“Home sales during the rest of the year will be lower than earlier projections…”

“We’ll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory.”

-David Lereah, chief economist of the National Association of Realtors

“New-home sales should to drop 16.1 percent this year to 1.08 million…”

-seekingalpha.com

“…the average price of a house rose by only 1.2% in the second quarter, the smallest gain since 1999.”

-The Economist

…And the kicker:

“In the Chicago area alone more than 95,000 properties are on the Multiple Listing Service of Northern Illinois, fully 40 percent more than a year ago…”

-Chicago Tribune

With all these homes flooding the Chicago Market and slowing the increase in prices, it would seem we’re on the brink of a Buyer’s Market. I can just see you condo owners out there looking to sell sigh with resignation. But let me show you one other thing that will definitely act to raise your spirits:

“The past year has seen the sharpest slowdown in the rate of growth since…1975. Even so, average prices are still up by 10.1% on a year ago.”

-The Economist

10.1% higher! Even if you bought your condo last year you’re still looking to make a handsome profit if you sell now. I wouldn’t wait for the market to get any cooler - and it certainly looks like this slowdown in the housing market isn’t going to go away. Sellers who act quickly will likely escape the brunt of the situation.

Technorati Tags: Chicago condos, Chicago Real Estate