The new triple-tower high-rise project will be the first multifamily condominium project to be built in Lincoln Park since the early 70’s.  The design will incorporate a traditional masonry look, and overlooks Lake Michigan, Diversey Harbor, and the North Pond.  The $350 million complex includes a total of 312 condo units and 13 townhouses in three towers, which will be 22, 31, and 38 stories - easily classified as high-rise condos. One-bedroom to four-bedroom units will vary in size from 800 sq. feet to about 12,000 sq. feet.
Completion of these condominium towers at 2520 North Lakeview Avenue is expected to be in late 2009.  Demolition of the current site, which houses the former Columbus hospital, is expected to begin in November of this year.

But what about the housing slowdown?  According to an adviser to the builders, “The upper end of the condo market is tough, but we think this project will differentiate itself by the location and spectacular views.”  As if other empty condos in the city of Chicago aren’t located by and have great views of Lake Michigan.  You’ve got to hand it to them, though.  Very brave going ahead with this project in the current market, with analysts forecasting even more of a slowdown, or at times even an all out recession.  But the change to Lincoln Park will be welcome - the old Columbus Hospital shut down in 1998, and has been largely vacant since then.

Technorati Tags: Chicago Condos, Lincoln Park Condos, High-Rise Condos, Columbus Hospital

I read recently that this year there’s 4 million homes on the market in the United States. According to historical data, that’s a million more than there was this time last year. That’s an increase of 33%.

“Until now sellers didn’t want to cut their prices. They were much more willing to provide an incentive - refinish the deck, seal the driveway, help with the financing, anything but cut the price,” says Mark Zandi, chief economist of Moody’s Economy.com. Incentives are nice, but let’s face it: the last thing sellers want to do is slash the price of the property. They make out better by offering buyers incentives like these, and also, many homeowners are very hesitant to accept the fact that they’re home isn’t worth as much as they originally thought. But now they’re finally waking up to the truth - that smart buyers are waiting for an irresistable deal - and that cutting the price of the property is the best way to get someone to buy a house, a condo, or anything, for that matter.

Even the mortgage companies are catching on. Chances are if you buy a new home, your mortgage lender will offer you some incentives (but be careful - because of the complexity of the mortgage process, these incentives tend to be less transparent).

Brokers are making out well, too. Because of the glut of homes, real estate brokers are being catered to by the home building industry, which means that your broker may be eyeing some incentives if he unloads a house on you - and he’s not required by law to tell you that. Be clear with your broker; ask him/her up front if they’re receiving any incentives for selling the property. If you ask, they’re obligated to tell you. Otherwise, your broker might be less than straight with you in this market.

Technorati Tags: Chicago real estate, buyer’s market, Chicago condos, Chicago brokers

Tired of seeing charts like this one?  You may see something like the reverse soon (imagine the graphic upside down).  Although the Fed stopped raising interest rates last quarter, home sales continue to slow, but for how long?  History teaches that it may not be too long before home sales begin to rise again - as long as the rest of the economy takes a little turn as well.

The consumer confidence index, or how people who spend money in this country feel about the economy, “brightened” more than expected in September, causing realtor’s hearts to skip a beat.  This may be an overstatement, given that consumer confidence is only loosely related to the housing market (and condo sales!).  Most likely the confidence index was up because of declining gas prices and the leveling off of interest rate increases.  But will Joe Consumer shovel out the dough for a new condo in Chicago because he believes the economy to be somewhat “better”?  We’ll have to see.  Check for an update next month.