January 4, 2009 – Sales of new and resale condominiums plunged in the city of Chicago in 2008 as the credit crisis brought an end to easy loans for potential buyers in the city.  Sales were off by more than 30 percent from 2007, and have fallen more than 37 percent after hitting an all-time high in 2006.

According to data from the Chicago MLS, a total of 14,641 new and resale condos were sold in the city in 2008, a 30 percent drop from a year ago.  At the peak of the market in 2006, a total of 23,475 condos and lofts were sold in Chicago.  The drop in sales in 2008 was led by plunging demand for the most affordable condos on the market.  Buyers picked up nearly 7,000 condos priced under $250,000 in 2007.  However, that number plunged to just over 4,400 in 2008 as many buyers were unable to qualify for a loan under increasing requirements from banks and lenders.

The only sector of the market to see strong growth during the year was ultra luxurious projects currently underway around downtown Chicago.  A total of 467 condos were sold for more than $1 million in 2008, up from 432 units sold in the same price range a year ago.  This helped raise the average sales price of condos sold during the year by nearly 8 percent to $402,048.  However, buyers shouldn’t expect to see another increase in the average sales price for Chicago Condos this year.  Sales of units priced over $1 million plunged during the last three months of the year, as even well heeled buyers are starting to feel the effects of the economic crisis gripping the national spotlight.

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

This entry was posted on Monday, January 5th, 2009 at 12:45 am and is filed under Market Update.