September 9, 2011 – Yesterday we talked about how there is a two and a half year supply of downtown Chicago condos already built, on the market and ready for move-in right now. A recent second quarter 2011 benchmark report from Appraisal Research Counselors as highlighted in a Skyline Newspaper article also stated that while buyers aren’t exactly rushing to sign sales contracts on condos, there were several Chicago real estate developments that did make double-digit sales during the second quarter of this year.

With 21 units sold and closed, 757 Orleans was ahead of the pack in the second quarter. 770 Lofts came in second with 15 units sold and closed, according to ARC.

235 West Van Buren was a close third with 14 condos sold and closed in the second quarter of this year, and Silver Tower along with 200 North Dearborn tied them for third with 14 sales inked as well.

Aqua and the Legacy at Millennium Park tied for fourth place with 12 condos closed in the second quarter of this year.

Coming in fifth place was the Park Monroe with 11 condos that closed from April through June. And the Trump Tower Chicago made it onto the list in sixth place with 10 luxury Chicago condos sold and closed during the second quarter of 2011.

So there you have the best-selling downtown Chicago condos in Q2 of 2011, according to Appraisal Research Counselors. If you’re in the market to buy, you may want to check out these developments and see what they have to offer that has attracted buyers.

[tags]235 Van Buren, Downtown Chicago Condos, Chicago Real Estate[/tags]

September 8, 2011 – The good news for buyers is that there are 1,911 new downtown Chicago condos for sale right now and ready for move-in. The bad news for Chicago real estate developers is that hardly anyone is buying. Or that’s what Appraisal Research Counselors states in their second quarter Downtown Chicago Residential Benchmark Report. In fact, even with no new condo developments planned, there could be enough current inventory to last around two and a half years, according to the report as detailed in a Skyline Newspaper article.

Only 196 new Downtown Chicago condos were sold during the second quarter of 2011 as compared to 665 units sold and closed during the second quarter of 2010. ARC reports that since 1996 there have been over 40,000 downtown condos built, with 4,800 units constructed just in 2007.

Of the 1,911 new downtown condos that are available from developers right now, 1,407 of those are new construction, 329 are converted condos, 152 are “adaptive-reuse” lofts and 23 are Chicago townhomes, according to the article. All of them were constructed in 2010 or just before.

Gail Lissner, VP of Appraisal Research Counselors stated in the article that developers probably won’t start any new condo projects until demand and prices increase and the employment rate goes up in the city. She was quoted as saying that, “Meanwhile, the unsold inventory in the condo market will ultimately get absorbed (sold) as the economy improves. This lull in activity will set the stage for a new development cycle to begin again within the next several years.”

There were several developments that made double-digit sales in the second quarter of this year, and tomorrow we’ll tell you which ones those are.

[tags]Chicago Townhomes, Downtown Chicago Condos, Chicago Real Estate[/tags]

August 23, 2011 – Despite all the dismal news about how sales of Chicago condos are still down and prices haven’t rebounded, the latest Illinois Association of Realtors report based on data from Midwest Real Estate will supposedly show that some neighborhoods actually made gains in July.

Crain’s published an article on the report that is due out this week and it showed sales of condos in the city went up by 2.1% in July. This data is supposed to be correct, as the IAR reviewed and corrected the past seven months of incorrect, inflated sales numbers and prices. The mistake was attributed to computer problems.

The report also stated that condo sales in Lakeview actually jumped 33% in July and the median price went up by 19%. July condo sales in Hyde Park were even more impressive because they nearly doubled year-over-year, according to the article. The median July condo sales price for that neighborhood increased 3.7%.

In Uptown, condo sales also improved with 36 units sold in July of this year, up from the 22 that sold in July of 2010. The median price didn’t follow though, and actually was down 12%.

The article goes on to say that the two factors fueling the sales increases were sellers who were the most motivated and had reasonable prices in line with the market and higher demand for homes in popular neighborhoods.

With sales of Lakeview condos and Hyde Park condos on the rise, it’s a good sign that Chicago real estate could be starting to rebound a little.

[tags]Lakeview Condos, Chicago Condos, Chicago Real Estate[/tags]

August 13, 2011 – With demand for downtown Chicago apartments still high and so many potential Chicago condo buyers still opting to rent, it’s no surprise that Class A second quarter rents are up 6.1% from the first quarter (2011). A recent Crain’s article detailed a report from Appraisal Research Counselors that showed downtown rents were also up 9.5% from a year ago. The average net rent is now $2.43 per square foot. That includes allowances for free rent concessions.

Occupany at downtown Class A rental buildings has also gone up, according to the article. Occupancy rates a year ago were at 94.5%. For the first quarter of this year (2011) they were 93.9%. But for the second quarter of this year they inched up to 95.6%.

ARC also went on to state that five new downtown Chicago real estate projects will add 1,718 rental units to the market in the next couple of years. Another twelve or more are on the drawing boards. That shouldn’t flood the market though, according to ARC. They estimate that around 2,000 apartments are being rented each year while developers are adding around 1,375 per year (5,500 by the end of 2014). The increase in owners and investors who are putting Chicago condos up for lease doesn’t seem to be impacting the rental market either.

Ron DeVries of ARC doesn’t think that the demand for Downtown Chicago apartments will fall anytime soon even with rising rents. He was quoted in the article as saying that, “We just don’t see that happening until demand comes back for the condos, and that’s not going to happen until stability in (condo) pricing returns and the ability to finance the units like we used to is back in the market.”

[tags]Downtown Chicago Apartments, Chicago Condos, Chicago Real Estate[/tags]

July 25, 2011 – There was quite a bit of uproar a few days ago over the news that the Illinois Association of Realtors data has been incorrect and inflated in terms of Chicago condo and home sales as well as median price. Now the June 2011 numbers have been released by the IAR and they look more realistic.

According to the report, Chicago area sales of single-family homes and condos in June of this year amounted to 7,481 units. That is a 13.2% increase from May 2011 when 6,608 units were sold. It’s down 17.7% from June 2010 though when 9,085 single-family homes and Chicago condos were sold.

There were 1,841 Chicago condos and single-family homes sold within the city during June 2011. That is an 8% increase over May 2011 sales of 1,705 units but down a whopping 27.1% from the 2,526 units sold in-town Chicago during June 2010.

The median sales price for Chicago area homes and condos was $180,000 for June of this year (2011). That is a 5.9% increase over the May 2011 median price of $169,900 but down 13.3% from the June 2010 median price of $207.500.

The median price for Chicago homes and condos sold within the city during June 2011 was $207,000. That dropped 11.6% from the June 2010 median price of $234,250 but up 8.9% from the May 2011 median of $190,000.

Chicago Association of Realtors president Mabel Guzman was quoted in the report as saying that, “Chicago condos continue to outpace single family by 30 percent for the second month evident not only in units, also in downward price movement. In the coming months, we will be observing the economic pressures which will likely lead to an increase in distressed assets to the market.”

We’ll have to wait and see if her Chicago real estate prediction comes true. Until then, check back with us for the latest news about Chicago condos and Chicago homes for sale.

[tags]Chicago Homes For Sale, Chicago Condos, Chicago Real Estate[/tags]

July 8, 2011 – The $5,000 free furniture gift card incentive at 565 Quincy may be over now but you can still get some great deals on pricing at this Chicago real estate development.

Right now developer Belgravia Group is advertising tower unit #12 which is a 548 square foot studio that has wood flooring of course, along with GE stainless steel appliances, granite counter tops, 42 inch cabinets, marble master bath, Kohler fixtures and a private balcony. The price for this studio at 565 Quincy is $159,900.

Another tower condo for sale is unit #17. This condo is a one bedroom, one bath with 765 square feet. It also features hardwood floors, GE stainless steel appliances, 42 inch cabinets, granite counter tops, waterfall baseboard trim and door, carpeted bedroom, marble master bath, Kohler fixtures and a private balcony. One indoor heated parking space is included in the price of $247,900.

565 Quincy has a 24 hour doorman and the well-known 11,000 square foot Q Room with a fitness center, 2 lane bowling alley and movie room.

565 Quincy may be a good fit for you if you’re in the market for Chicago lofts.

[tags]565 Quincy, Chicago Lofts, Chicago Real Estate[/tags]

June 30, 2011 – Since the overdue construction loan on Silver Tower was bought by the Davis Company of Boston, we thought we’d give you the most up to date prices that Jameson Realty is advertising. Davis was more than hinting at raising prices in a recent Crain’s article, so interested buyers may want to try and lock in a contract before the prices increase.

Below are some of the Silver Tower condos that Jameson is still marketing. Remember, these prices may increase.

Unit #2009 / 1BR/1Bath / $244,729 / Assessments: $285.00
Unit #3308 / 1BR/1Bath / $248,750 / Assessments: $313.00
Unit #2409 / 1BR/1Bath / $250,708 / Assessments: $296.00
Unit #3701 / 1BR/1Bath / $279,202 / Assessments: $327.00
Unit #1706 / 2BR/2Bath / $357,621 / Assessments: $370.00
Unit #3101 / 3BR/2.5 / $599,900 / Assessments: $685.00

The condos at Silver Tower come with stainless steel appliances, granite counter tops and some kitchens have a breakfast bar. The baths have marble tile and each unit has a balcony, washer/dryer hook-up hardwood floors and floor-to-ceiling windows. The tower has a 24 hour doorman, sun deck, fitness center and more.

You can find out more about Silver Tower and other River North Chicago condos in our development pages.

[tags]Silver Tower, Chicago Condos, Chicago Real Estate[/tags]

June 16, 2011 – Compared to single-family homes, Chicago condos may not be doing as bad in terms of pricing. A recent article in the Tribune highlighted some stats provided by economist Paul Dales, who is the senior U.S. economist for Capital Economics. The article showed that while condo prices have fallen faster than prices of single-family homes, Dales predicts them to fare better this year (2011).

Mr. Dales isn’t saying there is going to be a huge rebound in Chicago real estate by any means. He used the term “less bad” when refering to future prices of Chicago condos as compared to single-family homes. Only 6% of all homes sold are condos, while 88% of all homes are single-family houses. Mr. Dales used data from the S&P/Case Shiller 10 and 20-City Index because it is the only report that tracks condo prices.

He stated that nationally for the past 10 years, condo prices have outperformed prices of single-family homes. In Chicago, Los Angeles, San Francisco, Boston and New York, condo prices jumped 120% while single-family homes only had a 60% increase. But when the housing market crashed, there was a 25% drop in condo prices while single-family homes fell 28%.

Condo prices had been falling faster than prices of single-family homes. In February of this year (2011) condo prices in those 5 cities fell 5.1% compared to a 2.3% drop for single-family homes. But Mr. Dales also estimates that prices of single-family homes will fall about 5% this year and condo prices will fall by less.

He bases this estimate on data from those 5 major cities plus the fact that more buyers are purchasing smaller Chicago homes, including condos. There has been a 10% to 13% increase in condo sales compared to all housing sales since January 2009, according to the article. Investors also tend to prefer to buy condos to rent, not single-family homes, since the rental market has been so strong.

With 2011 almost half over, we won’t have a lot longer to see if his predictions about prices of Chicago condos are right.

[tags]Chicago Homes, Chicago Condos, Chicago Real Estate[/tags]

June 3, 2011 – Jameson Realty is still marketing individual Chicago condos at Silver Tower. The high-rise is located on 303 West Ohio Street in River North and if you are interested in purchasing a unit there, you may want to act sooner as opposed to later because the remaining block of unsold condos in this Chicago real estate development is also up for sale in bulk. An investor could purcahse them and lease them, which seems to be the trend of late.

The condos come with oak hardwood floors, floor-to-ceiling windows, carpeted bedrooms, a balcony or terrace, KitchenAid stainless steel appliances, granite counter tops, double bowl sink, Grohe fixtures, cherry or maple cabinets and 12 inch marble bath tile and surround.

Building amenities include a 24 hour doorman, sky lobby with terrace and community room, fitness center and resident storage lockers.

Some of the condos currently for sale are listed below.

Unit #2009 / 1BR / 1 Bath / $244,729
Unit #3308 / 1BR / 1 Bath / $248,750
Unit #2409 / 1BR / 1 Bath / $250,708
Unit #3701 / 1BR / 1 Bath / $279,202
Unit #2405 / 1BR / 2 Bath / $288,886
Unit #3105 / 1BR / 2 Bath / $295,738
Unit #1706 / 2BR / 2 Bath / $357,621
Unit #2007 / 2BR / 2 Bath / $401,566
Unit #2507 / 2BR / 2 Bath / $413,313
Unit #3101 / 3BR / 2.5 Bath / $599,900

You can also find other great new Chicago condos in River North by following the link.

[tags]Silver Tower, Chicago Condos, Chicago Real Estate[/tags]

May 27, 2011 – Unless there is a big rush of Chicago condo sales, 2011 will be the third year in a row that Chicago real estate developers have sold fewer than 600 Downtown Chicago condos. A recent Appraisal Research Counselors report that was highlighted in a Crain’s article stated that just 174 downtown Chicago condos were sold in the first quarter of this year. There were 256 downtown units that sold in the first quarter of last year (2010). But even with the low number of sales for Q1 of 2011, the report points out that it’s better than the last quarter of last year (2010) because developers had a net loss of 19 sales then due to walk-away buyers.

The ARC report gave a few obvious reasons for the dismal sales. “Not knowing whether the bottom has been reached in prices, concerned about the continued weakness in the economy and job market, and finding it difficult to sell existing residences and finance new acquisitions, many people are opting for the easier decision — to rent,” ARC explained.

But the article also went on to state that the excess inventory of downtown Chicago condos is slowly decreasing despite dismal sales. That is largely due to developers putting new projects on hold, scrapping plans completely and converting condos to rental units. At the end of the first quarter of last year (2010) there were 4,182 unsold downtown Chicago condos. At the end of the first quarter of this year (2011) that number went down to 2,031 unsold downtown Chicago condos. Back in 2008 there were 8,222 unsold downtown Chicago condos at the end of the first quarter. ARC started recording sales data in 1997 and said in the article that right now the inventory of unsold downtown Chicago condos is pretty close to what it was in ’97.

Buyers opting to walk-away from sales contracts has forced ARC to change the way they track sales. The firm has always counted a signed contract as a sale, but just recently started only counting closed contracts. With that in mind, there were 189 downtown Chicago condos that sold and closed in the first quarter of this year. In the last quarter of last year there were 251 sales contracts that closed on downtown Chicago condos and 451 that closed in the first quarter of last year (2010).

Most housing experts agree that we still may be a year or even two away from a real recovery in terms of Chicago condo prices and sales.

[tags]Chicago Condo Sales, Downtown Chicago Condos, Chicago Real Estate[/tags]